How to start a business in Illinois?
Starting a business can be both rewarding and exciting whether you have an established business or are planning to start a business. Illinois offers numerous opportunities for innovation and growth with its strategic location, diverse economy, and vibrant cities like Chicago. It is difficult for you to understand the process of establishing your business if you are unaware of where to start. Knowing the state's legal framework will establish the foundation for success whether you are starting a tech company or launching your online business. In this guide, you will find the steps needed to start a business in Illinois that is ideal for making money.
Choose Your Business Structure
Choosing the business structure is the crucial step while starting a business in Illinois. This is the way to decide how your business will handle all legal responsibilities. This shows how much control you have over your business. There are several options for business structure you can choose that align perfectly with your business. Whether you go with a corporation, limited liability company (LLC), partnership, or sole proprietorship, each of them has its own benefits.
Register Your Business Name
Planning a business starts with choosing a name that helps customers recognize your brand in the crowded market. Before finalizing the name, you should confirm whether it is available or not. For that purpose you can visit the Illinois Secretary of State’s online database; after searching their data, you will surely find a name that has never been used before. Once you find the name, the next step is to apply for its registration; then it becomes your property.
File Formation Documents
Like an LLC, corporation, or partnership, these are the set of documents that assist in officially creating your business entity. You’ll need to submit different forms to the Illinois Secretary of State’s office depending on the type of business structure you have. Let me give you an example to make it more clear to you: you would file the Articles of Organization in case you are filing an LLC.
Obtain Necessary Licenses and Permits
You will need to obtain the necessary licenses and permits in case of doing business in Illinois. The requirement for getting this varies from business to business depending on the type. For example, if you are planning to start a food business by opening a restaurant in Illinois. For doing this you will need an official license that shows you have all the right to open a restaurant and sell food.
Apply for an EIN
The Employer Identification Number (EIN) is necessary, and if you want to start your business in Illinois, you need to apply for this. Similar to a Social Security Number, which is essential for your business, this number is issued by the IRS to those businesses that fulfill their requirements. Having this number is crucial if you want to file taxes, hire new employees, and operate as a partnership.
Register for State Taxes
To ensure that you’re compliant with state laws, you need to register for state taxes for running your business. To make the registration process faster and easier, you can register for state taxes by visiting the department’s website. Once the registration is approved, you will receive a Business Tax Number (BTN) that assists your business-related tasks and for filing taxes.
Open a Business Bank Account
Opening a business bank account is not only a vital step, but it also helps you to manage your finances with ease. Sending and receiving payment is not difficult if you have a company bank account. Moreover, this also makes your business more professional. After having a business bank account, an entrepreneur can easily separate their personal expenses from business transactions.
Obtain an Illinois Certificate of Good Standing
This certificate represents that your business is legally registered and following all the instructions of the state. This means that the state is well informed by the product or service you are providing. Obtaining an Illinois certificate of good standing is a straightforward process if your business has met all state requirements. Fulfilling the state requirements not only helps in obtaining an Illinois certificate of good standing but also shows your business is more trustworthy in your customer's eyes.
Create a Business Plan
Starting a business without having the proper planning is like going without weapons. A business plan is like a pathway that shows the way to your destination. This is a list of complete guidelines that have the plan from where you start and where you go. When you know how to deal with every challenge that might come in your journey, the chance of success increases, in this way, you are more likely to focus on your targets.
Market Your Business
Marketing your business involves the strategies that will be applied to grab customer attention. Without marketing your business, how would your customers know about your business? Marketing is a way of creating awareness of your company in the competitive market. Nowadays, social media is the best medium for promoting your brand. In addition, by using filters, you can target an audience that is aligned with your product or business.
