Starting a business involves more than choosing a name. Registration, tax responsibilities, licensing, insurance, and recordkeeping all need attention. The right steps depend on what you do, where you operate, and how the business is organized.
Start with the business structure and name
Decide who will own the business and discuss the tax and legal implications before filing. An Illinois LLC is formed by filing Articles of Organization with the Secretary of State. Its name must meet state requirements, and it must maintain an Illinois registered agent and registered office. Other structures have different requirements. Check assumed-name requirements when using a name different from your legal business name.
Obtain the appropriate tax registrations
An employer identification number, or EIN, is a federal tax identification number. The IRS issues EINs at no charge. When forming an LLC or corporation, complete the state formation first, then apply for the EIN. Not every sole proprietor needs one for federal taxes, although a bank or state registration may make it useful.
Separately, determine which Illinois tax registrations apply. These may include sales tax, withholding, or business income tax. MyTax Illinois provides the state's business registration process using Form REG-1. An EIN does not replace state registration.
Check licenses, permits, and location rules
A registered LLC is not the same as a business or professional license. Check the requirements for your work and operating address before signing a lease or accepting jobs. Chicago contractors, for example, may need a city general contractor license or a separate trade license.
Set up finances and protection before you get busy
Open appropriate business banking, keep business activity separate from personal spending, and establish a routine for recording income and expenses. Review insurance before beginning operations, hiring, using vehicles for work, or signing contracts. Keep a calendar for tax filings, license renewals, and applicable entity reports.
How J&L can help
J&L provides business start-up guidance, bookkeeping, tax preparation, and insurance assistance. We take time to understand your plans and help organize the next steps. When a question requires legal advice or a service outside our scope, we may connect you with an independent professional. Payroll services are available through referral partners, not provided directly by J&L.
