How To Get A Business License In Illinois – Forbes Advisor

The state of Illinois requires nearly all businesses to obtain some kind of license or permit in order to operate legally. But with a variety of business licenses available from a number of different local, state and even federal governments, determining exactly which business license you need can be confusing.

Local Business Licenses in Illinois

A traditional “business license,” sometimes also called a business operating license or general license is obtained from your city’s or county’s local government and allows you to operate your business within your municipality. Larger cities in Illinois will require all businesses to have a business license and certain professions may require additional licensing. Some smaller Illinois towns may not require a general business license but may still require specific licensing for specific kinds of business. Use the Illinois Secretary of State’s website to determine which local government represents your business area and then which licenses or permits it may require.

Additional Local Permits

Your local municipality may also require additional permits or licenses especially when you are first starting a business in its jurisdiction. It may be necessary to obtain an occupancy permit or even a home occupation permit if your business is based in your home. If you’re doing renovations or new construction, you may need a variety of building permits—including signage permits for advertising—from the local planning department.

Most importantly, if your business deals with people’s health, be it through a healthcare service, food or even accommodations, you will likely be subject to a specific health department permit or licensing. This will likely exist on the local and/or state level.

Illinois Statewide Licenses

Any business intending to sell or lease taxable goods or services in the state of Illinois is required to obtain a Certificate of Registration or License, sometimes referred to generically as a seller’s permit. Illinois also sometimes calls this certificate an Illinois Business Authorization. This state-level permit registers your business for Illinois sales tax and other taxes you may be subject to. When applying for the state-level permit, you will either receive the Certificate of Registration or the Certificate of License, depending on the type of business you conduct, and this will inform the type of taxes you are required to pay. To apply, head to the MyTax Illinois website.

Businesses engaged in certain industries or professions may be required to obtain additional licenses or permits. This list includes a significant number of agricultural types of businesses, as well as beekeeping and waste management, to name a few. To see if your business is required to hold a state-level permit in addition to the sales tax permit, head to the Illinois state government website.

Federal Licenses and Permits

While most smaller businesses will not require federal licenses or permits, you may be required to obtain a federal license if your industry or profession is regulated by the federal government. Here are a few common industries requiring federal licensing:

• Agriculture
• Alcoholic sales, serving, distribution or importing
• Aviation
• Firearms, ammunition and explosives
• Fish and wildlife
• Commercial fisheries
• Maritime transportation
• Mining and drilling
• Nuclear energy
• Radio and television broadcasting
• Transportation