Do I need a license to start a business?

On Behalf of | Mar 30, 2020 | Business Formation | 0 comments

Entrepreneurs in Illinois continue to start businesses throughout the state. Depending on the type of business you start, you may need certain qualifications, licenses and permits. All businesses regardless of industry need to register their company with the state.

The Illinois Department of Commerce & Economic Opportunity provides small businesses with a variety of resources to help you get started. Only those listed in their occupational listing guide require a license to operate. For example, selling alcohol requires a liquor license.

One of the first things you need to do before starting the business is determining exactly the services or products you plan to sell. Once you know what you want to do, where the best location is and your target audience, you can craft a business plan. This plan includes what you need to get started along with a future plan for growth.

The business plan includes items such as necessary licensing, the structure of your business and expected sales projections. The plan can help your business grow and even help you obtain financial backing such as a commercial loan.

Regardless of whether your business requires a license, the state requires you to register the business with the local county clerk. Then you must register the business with the IRS and Illinois Department of Revenue depending on what your business offers. Retail establishments and manufacturers must register with the IDOR.

Some local municipalities may require a permit to operate the business before the doors open. Licensing information is available through the Department of Financial and Professional Regulation. This information is intended only to educate and should not be interpreted as legal advice.