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Forming a company in Illinois and getting permission to sell are two jobs. The Secretary of State handles the first. The Department of Revenue (IDOR) handles tax registration, and a professional board or your city can add more. You will not find one all purpose license at the top of the pile.
Is forming the LLC the same as being licensed?
No. The Articles of Organization, Form LLC-5.5, cost $150 and create the company. Our Illinois LLC guide covers that filing. The yearly LLC report costs $75. Neither one gives you a tax account or a trade license.
How do I register with IDOR?
The IDOR registration page says you must register if you conduct business in Illinois or with Illinois customers. The rule names sole proprietors that withhold Illinois income tax for employees, and the page says there are some exceptions. There are three ways in:
- Online. Open MyTax Illinois and click "Register a New Business (Form REG-1)." The Department says processing takes about one to two business days.
- By mail. Send a completed Form REG-1, the Illinois Business Registration Application. The page gives a processing time in weeks, not days.
- In person. Pick up a paper REG-1 at an IDOR office and get help with it.
If you need help, the Department lists a publication called PIO-117, How to Register your Illinois Business. The page adds that, if necessary, you may also register with the Illinois Department of Employment Security through MyTax Illinois. Some businesses add schedules to the form. The page lists them, covering liquor, cigarette and tobacco products, electricity tax, gas use tax, business site locations, owners and officers, responsible parties and telecommunications locations.
When should I register?
Before you buy, sell or hire, and ideally before you print business cards. The Department tells you to register before you make any purchases, sales or hire an employee. After you register, keep the details current. Name, address, ownership and tax type changes are updated through MyTax Illinois or at an office. If you skip updates, returns and payments may not be processed correctly, and you may get a tax bill or notice.
What do I get after registration?
A Certificate of Registration or License, plus a taxpayer ID. For several tax types the Department no longer prints and mails the certificate. It is issued electronically, and MyTax Illinois is where you print it. Under "View Account Letters" you find the letter.
You need a federal EIN for most of this. The EIN guide shows how to get one.
Where do I check a license?
Two tools, for two jobs. For a business's tax registration, IDOR's business page has a Verify a Registered Business link. For a person or firm that needs a professional license, the IDFPR home page has a Check if Individual or Entity is Licensed link. The lookup it leads to is searched by license type, such as architect, cosmetology or detective board. We did not run either tool, so read each page for what the results show. For the company record at the Secretary of State, see our Illinois business guide.
What does this page skip?
City and county licenses, such as local business permits, are not covered, because we did not read those pages. The same goes for industry licenses, local taxes and fees for each profession. A trade name has its own rules in the Illinois DBA guide. Next door, Wisconsin and Kentucky differ. The state tax ID lookup page explains which tax numbers are public. This is general information, not legal advice.