What Business Licenses and permits do I need to operate in Illinois?
Navigating Illinois licensure laws can be complex and time-consuming. While Illinois does not have a general business license requirement at the state level, businesses may still be required to obtain other licenses, permits, and registrations before opening their doors. The Illinois Department of Financial and Professional Regulation (IDFPR) is the primary licensing agency that regulates a wide range of industries and occupations; however, a business may also need to obtain licenses and registrations from other state agencies. Many companies will need to register with the Illinois Secretary of State’s office and the Illinois Department of Revenue. Businesses will also need to check with the city clerk and county clerk offices to determine local licensing and registration requirements.
Here are sample license, permit, and registration requirements that you may need to complete before doing business in Illinois:
- Business registration: Illinois LLCs and corporations (as well as LLCs and corporations from other states) must register with the Illinois Secretary of State’s office.
- IDOR registration: In Illinois, most businesses will need to register with the Illinois Department of Revenue (IDOR). IDOR issues Certificates of Registration or License. IDOR also licenses and registers certain retailers and businesses.
- Illinois state licenses for regulated industries and professions: A professional license, registration, or certification handled by a state agency may be required before business operations can commence. These requirements may apply to a business, an individual, or both. The Illinois Department of Financial and Professional Regulation (IDFPR) is also responsible for issuing licenses for various professions and industries.
- Special Illinois state permits: Certain products and services require special state-issued permits and licenses. For example, businesses that manufacture, distribute, or sell alcoholic products are required to obtain a license from the Illinois Liquor Control Commission, while trucking companies typically must register with the Illinois Commerce Commission.
- Federal tax ID: Also called an EIN, a federal tax ID is issued by the IRS and is included on federal tax returns filed for your business.
- Illinois basic business license: A basic business license may be required at the city and/or county level. This license may be specific to a particular type of business activity or apply to all general business activities.
- Other local licenses, permits, and registrations: Cities and counties may impose additional licensing and registration requirements, such as a certificate of occupancy and permits from various departments, including health.
- Assumed name registration: If a business plans to operate under a name other than its legal name, that business is required to register that name (called an assumed name or DBA) with the local jurisdiction. This is generally done at the county level.
- Federal licenses and registrations: Federal licenses are typically required for businesses regulated by a federal agency, such as the Securities and Exchange Commission, the U.S. Department of Agriculture (USDA), and the Bureau of Alcohol, Tobacco, and Firearms. For example, food businesses that purchase or sell more than 2,000 pounds of fresh or frozen fruits and vegetables are required to obtain a USDA-issued PACA license.
