Because there is extensive cost in time, fees and red tape involved, obtaining licenses, permits, and tax requirements may be one of the last steps to take before opening a business. There are different requirements at the city, county, state and federal levels that apply to different aspects of businesses. This information is arranged by level of government. Local concerns pertain to the Peoria metro area. Inquire with local municipalities if the business is located outside of this area.
Make sure that the business or job function you perform is properly licensed by the appropriate regulatory agency. It is impossible to list all legal requirements for any business. This handout offers guidelines only. This is why it is so important to have experience in or knowledge of the particular business. Business research should be thorough and ongoing to keep up with regulatory changes as they occur. Ask a lot of questions.
Before applying for a business license, first verify that the type of business and its physical location complies with local zoning regulations. Although there is no fee associated with verifying zoning compliance, permit application fees to change zoning status vary.
Please contact your local Planning and Development Department or City Clerk for further details.
After verifying zoning compliance, the next step is to check with both the City Clerk and County Clerk to determine if a business license is required for type of business. The application fee for obtaining a business license will vary depending on the type of business.
Please contact your local County Clerk's Office for more details
Sole proprietors and general partnerships operating their business under a fictitious or assumed name must apply for a DBA certificate with the county in which the business is physically located. Contact the local county clerk.
Please contact your local County Clerk's Office for more details.
Contact the Secretary of State's Office (SOS) to incorporate or register a state trademark. A business is not required to incorporate. SOS employees will not give any legal advice regarding the pros and cons of incorporating. Their web address is: www.cyberdriveillinois.com.
Please contact your local Secretary of State's Office for more information.
Be sure to research and discuss the specific advantages and disadvantages of each form of ownership with a qualified accountant or attorney before you finalize your decision. If incorporating, contact the Secretary of State's office. Incorporating can be done using the Secretary of State's on-line services, as well as by searching their database of incorporated businesses to see if the business name is available.
Employer Identification Numbers (EIN), also known as Federal Employer Identification Numbers, are issued by the IRS and used to report tax responsibilities to the state and federal government. They should be applied for 6-8 weeks prior to beginning business. Complete an EIN application (Form SS-4) if hiring employees, incorporating or operating a partnership, administering a Keogh plan, filing excise, alcohol, tobacco and firearms tax returns, or opening a bank account in the name of the business. The web site below is a link to either downloading the SS-4 application or obtaining your EIN online: www.irs.gov.
Please contact the Internal Revenue Service (IRS) for more details.
Contact the U.S. Dept. of Labor if the business' sales are over $500,000 and there are greater than 4 employees. Ask questions about child labor laws, minimum wage, Occupational Safety and health Administration, the Americans with Disabilities Act and the Family Medical Leave Act.
To learn more about OSHA requirements and workplace safety: www.osha.gov
To learn more about the ADA, contact the following entities: (800) 514-0301 to receive materials and publications. www.usdoj.gov/crt/ada/adahom1.htm
Employees must complete Form I-9, "Employment Eligibility Verification Form." To learn more about immigration: (800) 375-5283 "Ask Immigration" https://www.uscis.gov/
Please contact the Bureau of Citizenship Immigration Services for more information.
FUTA varies by state.
If the business has employees and has already received an Employer Identification Number, contact the Illinois Department of Revenue for a "Business Registration Kit".
To apply for a sales tax permit, submit an application (form REG-1) to the Illinois Dept. of Revenue. Their web address is: www.iltax.com
There are most likely a vast number of local taxes in your state. Local municipalities (cities and counties) define their respective tax rates, so it's a good idea to become familiar with local taxing authorities.
Depending on their location, restaurants and lodging facilities may be required to collect an additional sales tax (sometimes referred to as a "Hotel, Restaurant and Amusement" tax) that is remitted to local advertising and promotion commissions.
Please contact your local City Clerk's Office for more details.
Contact the Illinois Department of Employment Security at: (800) 247-4984 or www.ides.state.il.us
You are required to provide worker's compensation insurance for your workers for work-related injuries, accidental deaths, and diseases. Proprietors and partners do not count as employees; however, all members of corporations do count as employees. Contact a registered insurance agent.
Please contact the Illinois Workers' Compensation Commission for more information at (866) 352-3033 or (309) 671-3019 or https://www2.illinois.gov/sites/iwcc/Pages/default.aspx.
Contact the County Health Dept., an on-site inspector of restaurants and food preparation facilities. Anyone in food services, such as food processing, restaurants, caterers, mobile food units, convenience stores and bed and breakfasts must have their kitchen plans approved before establishing these businesses. These rules also apply to home-based businesses.