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Illinois Business License

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Summary

The Illinois Business License guide explains the necessity of licenses and permits for various businesses. It covers state, local, and federal jurisdictions, offering insight into the application and renewal processes while suggesting professional assistance for ensuring compliance.

What Is It?

A business license is any type of license or permit that a government entity requires you to have to conduct business. There are several types of licenses and permits required with different business licenses. They can be issued by the federal, state, or local government.

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Do I Need a Business License?

Whether you need a business license to run your business depends on what state your company is located in. Below are some common reasons you need to apply for a business license.

  • If you are a brick-and-mortar business, you may need a permit to operate and allow commercial activity on your business property. A brick-and-mortar business is a physical location where owners may showcase their products utilizing a physical storefront. Customers can then visit the property to peruse the store, speak with sales representatives, try on products, and purchase any goods. The municipality you’re in might also need permits for certain things such as signage and fire safety. Examples include specialty stores, convenience stores, grocery stores, and drugstores.
  • If you are selling products, most states, including Illinois, require you to obtain a seller’s permit. This permit enables you to collect sales tax from your customers.
  • You will need to obtain industry-specific licenses if you provide any services where you need a license, such as a stylist, lawyer, medical care provider, or accountant.
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Who Issues Business Licenses?

Three main jurisdictions issue licenses. These include state, local, and federal.

State Business Licensing

As mentioned above, you may need to apply for a seller’s permit if you sell any products. Seller’s permits are issued by the state and allow your business to sell products within the given state you have the permit. Other state licensing and permits can include the following:

  • General business licenses
  • Doing business as (DBA)
  • Liquor licenses
  • Medical Licenses
  • Electrical permits
  • Fundraising licenses
  • Farming licenses
  • Health Permits
  • Real estate licenses

In Illinois, many businesses are required to have a state business license. If you meet any of the following, you must obtain a business license with Illinois State. The state-level permit in Illinois is referred to as the Certificate of registration or license, also known as the seller’s permit. Essentially, it registers your company for Illinois sales taxes and other taxes you may be eligible for. Illinois also refers to its certificate of registration as Illinois business authorization.

  • Are operating a business in Illinois
  • Are selling or leasing any taxable goods or services

To obtain a business license in Illinois, you must visit the MyTax Illinois website and apply for a certificate of registration or license.

Furthermore, you may need additional licenses or permits depending on your industry and profession. You can check Illinois’ Registration, Licenses, and Permits website and the Illinois Department of Financial and Professional Regulation website to see whether you need to apply for more licenses or permits.

Local Business Licensing

Local refers to the county or city you are operating in. The licenses and permits you need will vary depending on the location and business structure. Also, you may need to apply for multiple local business licenses or permits if you operate in multiple cities or counties.

Some example permits you may need to apply for locally are similar to those listed above for state permits and licenses. See the list below for some examples.

  • General business licenses
  • Zoning and construction permits
  • Health permits
  • Professional Licenses

For additional information, you can check with the local Illinois city and county government offices where your business is located.

Federal Business Licenses and Permits

Certain activities are regulated by the federal government and require you to apply with them to obtain the appropriate business license or permit. Below is a list of some business activities that require you to apply for licenses with the federal government. The links for applying to the respective licenses are also included below.

How Do I Obtain a Business License?

You can file for an Illinois Certificate of Registration or License either online or via mail. You may also download the Illinois Business Registration Application and send it to the following address. It is free to apply for an Illinois business license.

Central Registration Division
Illinois Department of Revenue
P.O. Box 19030
Springfield, IL 62794-9030

You can add certain endorsements for different professions and cities to your Illinois license through the business licensing services . The cost for the different endorsements can vary. Contact your local government office for additional information about obtaining other licenses or permits.

How Do I Renew My License?

In Illinois, the Certificate of Registration or License for the state sales and use tax renews automatically. Check with the local or relevant state government office to determine what other registrations or licenses you may need to renew.

Do I Need a Business Attorney to Apply?

No, you do not need a business attorney to apply for an Illinois business license. Although, it can be helpful to consult a professional so that you know all the licensing requirements for your company. It can be challenging to navigate the different requirements of state, local, and federal agencies. We encourage you to reach out to a local attorney if you need assistance to ensure that your business is compliant.