We bring all the basic information so you know how to start a business in Illinois. Meet with Hispanic Entrepreneurs where you must register; what your obligations will be, and where to start defining your plan.
Getting started in Illinois
To embark on a successful project you must start with good planning. Give shape to your idea, check if it is viable, choose a good place to start the business, among other aspects.
Illinois is an excellent alternative to start a new business. The How to Start an LLC website highlights that this is the fifth best economy in the country. In addition to being the eleventh state in access to venture capital and in labor cost.
If you have already decided that this is the place where you will have your business, it is time to start defining the idea. It is important that the project is linked to your personal interests and abilities. This way you will stay interested even when going through difficult times.
To find ideas find out what the most profitable companies in Illinois and popular businesses in times of coronavirus.
After having a defined idea you have to check its feasibility. That is, if your business has the potential to be successful in the state. You can do this type of analysis on your own or leave it to experts.
After checking that you have enough potential, it is time to prepare the business plan. This document will provide a course of action to make the project a reality.
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An effective business plan has details such as name, product development, sales, marketing, employees needed, if you will partner with other people; in addition to financial planning.
Having all this in writing will give you more credibility when presenting the plan to potential investors. Likewise, the business plan will be one of the requirements when seeking financing.
How to start a business in Illinois
Having the plan ready and checking its feasibility, it is time to act to bring the idea to reality.
The following steps will give you an action guide:
Choose the most suitable structure
In Illinois there are several business structures from which you can choose. It is necessary to know them all and evaluate them to choose the one that best suits your needs.
Individual companies and general society. Under this model there is no obligation to register, unless a name other than the owner is used. In addition, you may also need an Employer Number.
Limited society. It is made up of a general partner who manages the project and several limited partners who invest, but are not involved in management.
Limited liability company or LLC. It is the most common structure as it fits most businesses. Its advantages are operational flexibility, limited liability and continuous tax treatment.
Limited liability company. In this case, the partners are not responsible for the debts or obligations of the company.
Corporation C. It has no limit on the number of shareholders; partners elect a board of directors to manage the company and the shares are easy to transfer.
S Corporation. Unlike the previous one, it has a limit of shareholders and is incorporated through the Tax Service. Both expenses and income are transferred to the shareholders and it is they who declare them.
Seek advice to choose the best structure for your business in Illinois. Consult with an attorney or accountant.
Where to register a business in Illinois?
To start operating you must register the business name with the County Clerk's office.
Then you will register the business tax and before the Internal Revenue Service.
Likewise, you will have to go to the Illinois Department of Revenue to obtain their authorization. If you are going to hire employees, manufacture products, buy or sell wholesale or retail, you need it.
You should also find out if you are required to pay local taxes and do the corresponding paperwork.
The next step is to obtain the corresponding permits and licenses from the Illinois Department of Financial and Professional Registration.
For details about these processes, visit the Illinois Department of Commerce website.
How much does it cost to open a business in Illinois?
The cost of opening a new business depends on many factors. In this case we will focus on registration. This amount varies according to the structure you choose.
For example, to register an LLC you will need $ 500, it can be more expensive than in other states. Instead, for a corporation you have to pay around $ 125.
To this we must add other costs such as franchise tax, which are calculated according to the value of the capital paid.
Owner responsibilities
After registering the business you have to be clear about your responsibilities as an owner.
We mention some of the most important ones:
- Comply with contributions to the Illinois Department of Employment Security for unemployment insurance.
- Enforcement of anti-discrimination laws can affect the hiring of employees.
- Have workers' compensation insurance.
- Keep a record of foreign employees with their identity and eligibility.
- Withhold wages for child support if required.
If you still have doubts about starting a business in Illinois, leave us your questions.
