How to Start a Business in Illinois in 2022: The Ultimate Step-by-Step Guide

 

How to Start a Business in Illinois in 2022: The Ultimate Step-by-Step Guide

 

The business sector of each country contributes to the growth of its economy. That is why it is most appreciated in all countries. In a state like Illinois, which is known as the 4th largest manufacturing industry in the United States, there is room for many business ventures.

 

The report shows that Illinois dubbed Lincoln Country and the Prairie States is considered one of the most important business centers in the world. And apart from the service sector, the business sector is another booming sector in the state.

 

So, if you've been thinking about how to start a business in Illinois and don't know where to start, follow me closely in this article.

 

In this article, I've put together a step-by-step guide that can help you on your journey to starting any type of business in Illinois. Also, I have listed some of the trending business opportunities you can venture into in the state.

 

My advice is that you read carefully until the last point without skimming. I bet you'll be glad you did!

 

The table of contents below will help you navigate easily!

 

Contents

The table of contents below will help you navigate easily!

For thinking about starting a business in Illinois, you probably might have some useful information about the state.

 

Nonetheless, I would like to give you some facts about the state that you may not really know before we dive into how to start a business there.

 

About Illinois

 

According to a Wikipedia , Illinois  is a state in the Midwestern region of the United States. It has the fifth-largest gross domestic product (GDP), sixth-largest population, and 25th-largest area of ​​any US state.

 

The state has been noted as a microcosm of the entire United States. Speaking of its economy, the state's gross product was estimated at US$909 with the minimum wage rising to $15 per hour by 2025, making it one of the highest in the country.

 

The economy of the state is made up of agriculture, manufacturing, services, investment, and the energy sector, with manufacturing being one of the leaders.

 

There are over 1.2 million small businesses operating in the state of Illinois. These companies employ 2.5 million people, or 45.1% of the state workforce and nearly 20% of the total population.

 

Small businesses make up 99.6% of private businesses in the state, making them a vital part of Illinois' economy.

 

What are the best businesses in Illinois?

 

There are over 100 companies in Illinois, but I will list the best ones. Below is a list of the top 10 companies in Illinois:

 

RANK    COMPANY          CITY

1             Walgreen Co.    Deerfield

2             mcdonalds         Oak Brook

3             Boeing  Chicago

4             Caterpillar           Deerfield

5             United Continental Holdings      Chicago

6             Sears Holdings  Hoffman Estates

7             Mondelez International               Deerfield

8             Veolia Environmental Services  Northbrook

9             JLL          Chicago

10           Abbott North Chicago

11           healthcare advocate      Downers Grove

What Kind of Business Should I Start in Illinois?

 

When starting a business in Illinois, you must first ask yourself: What type of business do I want to start?

 

While this question may seem simple, if you don't have full knowledge of the type of businesses that exist in the state and which ones are worth researching, you could be making the wrong decision.

 

Remember that a particular type of business exists and is thriving in one state, does not necessarily mean it will be thriving in another state. That's why it helps if you have a handful of information on hot businesses in Illinois that you can start.

 

Below are the types of business structures in Illinois that you can arrange for your new business, along with a brief description of each.

 

Sole proprietorship and general partnership

A Limited Liability Company

Partnership limit

Limited Liability Partnership

Company “C”

"Scorporation

Sole Proprietorship

 

This is also known as a one man business. In this type of business, the owner is different from the business. To start this business, the owner called sole proprietor is required to register with his local county clerk's office for registration under the Assumed Names Act.

 

A Partnership limit

 

This type of business in Illinois includes a general partner and limited partners. Associates do not participate in the day-to-day activities of the business.

 

Limited Liability Company

 

It is the unincorporated form of business that provides its owners with limited liability, flow-through tax treatment, and operational flexibility through participation in the management of the business.

 

Limited Liability Partnership

 

In this type of business structure, the partners are not responsible for the debts, obligations and liabilities of the business.

 

Corporation

 

It is a separate legal entity and is the most complex form of organization. A company can sell shares, which are certificates indicating ownership, to as many people as it wishes.

 

What business ideas are available in Illinois ?

 

Illinois had the most startups in the Midwest last year and sixth nationally. According to the Illinois Department of Commerce and Economic Opportunity , in 2020 more than 169,500 businesses started in Illinois.

 

Additionally, the state saw an almost 45% increase in new businesses in 2020 over the previous year. It was the largest year-over-year percentage increase in the Midwest and the fourth highest in the nation.

 

Currently, Illinois has over 100 start-up companies scattered across all regions of the state. Here are some of them:

 

PowerfulVine , Rochelle

OceanComm , Urbana-Campaign

EIGERlab , Rockford

Agile , Urbana-Campaign

One Fire , Peoria

interrocket , Bloomington-Normal

Intelli Wheels , Urbana-Campaign

Legacy Aloud , Bloomington-Normal

Launch Digital Marketing , Naperville

Rapid , Urbana-Campaign

What business ideas are available in Illinois ?

 

Check out this list!

 

Drive-in cinema

Grocery store

Towing company

Clothes shop

Gas station

Company of security guards

Step by step guide on how to start a business in Illinois

 

When you want to start a business in Illinois, there are a few key steps you need to take to start and run a profitable business. These steps include:

 

Have the best idea

Get a workable business plan

Form your business

Apply for licenses and permits

Open bank and credit accounts

Get business insurance

Get a physical location

Build an online presence

#1. Have the best business idea

 

Choosing what type of business to start is the first step in becoming a business owner. Look for a concept that matches your passions, personal ambitions and natural abilities.

 

Also consider your skills, resources, availability, and why you want to start a business.

 

This will keep you focused when the going gets tough and dramatically increase your chances of success.

 

And when you've finally decided on one, check the merits of your business idea by asking yourself these four questions:

 

Does my idea solve a problem?

Is my idea profitable?

How will technology influence my industry?

Is there a market for my idea?

To get started, scroll up to see a list of some business idea opportunities I've compiled and shortlisted right away!

 

#2. Get a Workable Business Plan

 

The next step to take is to get a solid and workable business plan. The easiest way to ensure the success of a business before it is even founded is through its planning process.

 

If you don't plan ahead, you are likely to fail in the business, regardless of your skills and available resources.

 

It is therefore expedient that before investing or starting a business, you create a plan. The plan serves as a roadmap that will guide you through the journey!

 

Company Name

 

Finding a business name can be difficult. You'll want to choose a brand name that meets Illinois naming guidelines, is memorable for your customers, and can be used as a URL.

 

Therefore, when considering the above obligations, you would choose a name that you and your target market can easily remember. To do this effectively, you can

 

Check Google for easy to pronounce names

Find companies with easy names

Perform a domain search

Do an LLC search

Be careful, if you want to form aLimited Liability Company, you must have "Limited Liability Company” attached to your company name. You should also avoid certain words and phrases such as “company”, “Corp. “, “incorporated”, “Co.”, “Inc.”, “Ltd. and “LP.

 

If you are forming a corporation, the words "corporation", "incorporated", "society" or "limited" must be included but separated from the other words of your business name.

 

Development of new products

 

What dilemma does your business solve? What would make your product or service stand out from the crowd?

 

Also consider cost, testing, and analysis when discussing product development. Would the manufacturing process be too expensive? Can you make a profit or will you dig yourself into a hole?

 

Sales & Marketing

 

Learn about your target market; people who would be interested in what you are going to sell and how you turn them into customers.

 

People and partnerships

 

What roles will you need to hire and what professional relationships will you need to build to be successful?

 

Financial planning

 

This should be the main part of your planning process. Check if you will have enough capital to pay rent, business tools subscription fees, payroll, marketing and other expenses.

 

Decide how many customers or sales you will need to break even.

 

#3. Form your business

 

Once you have completed the planning, the next step is to set up your business. This is where registering your business as a legal person comes in.

 

Registering your business helps improve credibility and protect you from personal liability.

 

Basically, starting a business largely depends on the type of business. That is to say, business creation varies. On that note, I'm going to give you an overview of how to start a business.

 

How to File a DBA in Illinois

 

To form DBA is also called “Sole Proprietorship”, “Doing Business as”, or a “Fictitious Name”, you need to follow the steps below:

 

Verify your business name by calling the County Recorder or visiting their website.

Obtain the county forms to register your DBA. Each county has its own filing requirements, but most accept the online filing options available here.

File the forms with the county. Some counties require the form to be notarized and published.

How to Form an LLC and Corporation in Illinois

 

Creating an LLC is a perfect choice for most small businesses. LLCs are simpler to set up and administer than other business organizations, and they receive preferential tax treatment. To form an LLC, make sure of the following;

 

That choice of name for your business is available  by searching the Illinois Business Entity Databases and  doing a name search on the State of Illinois website.

Then get a professional registered agent. This agent will give you his address and send you all the important documents.

File the correct paperwork  with the Illinois corporations division called "articles of organization."

Note: You can set up an LLC in Illinois for $500.

 

Before we finish this art, let's talk about the importance of having a registered agent.

 

Why Registered Agents ?

 

Any business in Illinois must have a registered agent and a registered office. The registered agent serves as a trusted point of contact between your business and the department, receiving tax and legal documents on your behalf.

 

Your registered agent can be you, a member of your LLC or business who is 18 years old and lives in Illinois, or an authorized registered agent service who may receive correspondence on your behalf.

 

There are pros and cons to each registered agent option, so read them and decide which is best for you.

 

How to start an online business

 

For an online business, you will need to register your business name as a domain name.

 

Additionally, to avoid trademark infringement issues, you should perform federal and state trademark verification to ensure that the name you wish to use is not the same or too similar to a name already in use.

 

#4. Apply for Licenses and Permits

 

Tax registration

 

To register for taxes, you must register with the Illinois Department of Revenue (DOR). Employer payroll deductions must be registered with the DOR if your business will have employees.

 

Both forms of taxes, as well as other corporate taxes, can be filed online through the MyTax Illinois website.

 

EIN (Employer Identification Number)

 

This number will be given to you by the IRS if your business has employees or is taxed separately from you.

 

And even if you're not legally required to have an EIN, there are several business reasons for doing so. Often banks require an EIN to open a business account, and other companies you do business with also require an EIN to process payments.

 

Note that you can obtain an EIN without filing fees by completing an online application on the IRS website.

 

Regulatory licenses

 

Different state agencies grant regulatory licenses. For example, you can obtain environmental permits from the Illinois Environmental Protection Agency and employment-related licenses from the Illinois Department of Labor.

 

#5. Open Bank and Credit Accounts

 

One of the goals of any business entity is to make money.

 

Indeed, in the planning process, the financial aspect of the business which includes both the expenses and the expected income is taken into consideration.

 

It shows that building a business without financial reporting is like building a house on the air. Apart from this, opening a bank account can help protect your personal account from any risk.

 

Indeed, when your personal and business accounts are not separated, your personal assets are at risk.

 

Plus, having a credit account can help you secure credit cards and other financing in your business name, better interest rates, higher lines of credit and more.

 

To open an account, you can visit one of the following commercial banks in Illinois listed below:

 

Bank of America

BMO Harris Bank

First bank in the Midwest

Associated Bank

National Woodforest Bank

#6. Get Business Insurance

 

Business insurance will protect your business and personal assets from the effects of unforeseeable events such as personal injury lawsuits and natural disasters.

 

An insurance provider can help you determine the best coverage options for your business, which could include general liability insurance to protect against bodily injury and property damage claims.

 

It can also be cyber liability insurance, which covers legal and settlement costs in the event of a computer security breach.

 

#7. Get a physical location

 

Where you choose to set up shop is critical, whether it's downtown Chicago, its immediate suburbs, or elsewhere in Illinois.

 

The idea is to find a place with the best resources that make running your business easier. For every disadvantage of the location (and there will be), there should be 3 advantages.

 

#8. Build an Online Presence

 

This is where creating an official business website comes in. Nobody wants to say that your business website has to be beautiful, but you have to have a digital presence to be taken seriously.

 

Customers should be able to find you on Google and learn more about your business. They must be able to accept digital payments. In some cases, they will need contact forms and blog material to get an idea of ​​what your brand is all about.

 

Reference

 

https://startupsavant.com/how-to-start-a-business-in-illinois

https://howtostartanllc.com/start-a-business-in-illinois

https://www.nolo.com/legal-encyclopedia/start-own-business-illinois-seven-steps-need-take.html

https://www.mycompanyworks.com/starting-business-illinois/