Hyatt, Boeing Co., Walgreen, State Farm Insurance,
Chicago-based hotel chain Hyatt ranked number 32 on the Fortune 100 Best Companies to Work for list. It is home to 1.2 million small businesses, which employ 2.4 million people and comprise 89.9% of the state’s exporters.
There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
Picking a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that, the better). In Step 3 we’ll show you how to search for the name in Illinois, but we highly recommend you do the following before searching Illinois state databases:
Now that you’ve picked your business name, you’re ready to search the name on Illinois databases and register with the appropriate government office.
NOTE: All businesses in Illinois are required to register alternative trade names by filing for a DBA if the business seeks to operate under a different name than what it used when it was formed.
NOTE: We can prepare and file your DBA in any county in Illinois
NOTE: Our LLC formation package includes not only filing the Articles of Organization (we’ll prepare and submit them to the state) but all the necessary post-formation documents completed and personalized to you “ready for signature” as well as our exclusive Startup Wizard which guides you through the complete startup process from formation to bank accounts, logos and more.
NOTE: Our Corporation formation package includes not only filing the Articles of Organization (we’ll prepare and submit them to the state) but all the necessary post-formation documents completed and personalized to you “ready for signature” as well as our exclusive Startup Wizard which guides you through the complete startup process from formation to bank accounts, logos and more.
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft. You can apply online with the IRS or via IRS Form SS-4. You can read more about corporate tax laws on the Illinois Comptroller website.
NOTE: We can obtain your EIN for you if you we form your company.
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
TIP: Our business formation service includes a free banking resolution for your use.
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
Tip: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
DBA: In Illinois, your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.
LLC: Illinois requires both annual reports and an annual franchise tax. These are due within a 60-day period immediately preceding the first day of the month of incorporation. The fee is $75 plus an amount based on your business’s paid-in capital.
Corporation: Your business must keep corporate records at its principal place of business. Every year, an officer of your corporation must file an annual report. Generally, this report can be filed electronically unless:
Franchise Taxes: Illinois businesses are required to file a $75 annual report with a $25 minimum franchise tax, based on your company’s paid-in capital. The franchise tax form in Illinois is widely decried as being one of the most complicated in the country – it’s therefore advisable to work through your corporate taxes with an accountant.
Wow loved it thankyou! I dreaded making this for a month thinking it would be a hassle. It wasn't thanks to you guys!
Excellent in all aspects. Perfect for new business owners with limited resources but wants to start it off right.