STARTINGYOURBUSINESS IN ILLINOIS HANDBOOK

STARTINGYOUR BUSINESS IN ILLINOISHANDBOOK

A COMPREHENSIVE RESOURCE FOR ENTREPRENEURS AND SMALL BUSINESS O W N E R S

The Illinois Office of Entrepreneurship, Innovation and Technology supports entrepreneurs through direct services and a network of resources by providing information, regulatory assistance, advocacy and business guidance to start-up

and existing small businesses.

Illinois Small Business DevelopmentCenters (SBDCs) provide start-ups and existing small businesses with no-cost professional business guidance, training, and support. SBDCs are located throughout

the state and assist entrepreneurs with planning, financial analysis, capital access, and research.

Illinois ProcurementTechnical Assistance Centers (PTACs) support small businesses

interested in to entering the government contracting marketplace. The centers provide counseling, certification assistance, technical information, marketing assistance and training to businesses interested in selling their goods and services to local, state, and/or federal government agencies.

The Illinois First Stop Business Information Center (First Stop) provides comprehensive information and technical support to businesses with questions and concerns about government regulations and assistance programs. First Stop also provides entrepreneurs and small business owners free business startup kits, online access to its searchable knowledgebase systemfor license and regulatory information, as well as easy to understand guides on various business issues.

The Illinois Small Business Environmental Assistance Program (SBEAP) provides free confidential assistance to help small businesses understand and comply with their environmental obligations. Services include a toll-free helpline, environmental workshops, resources and trainings.

Illinois SBDC International TradeCenters (ITCs) assist small businesses interested in pursuing international trade opportunities. ITCs offer information, confidential business advice and training to existing and new-to-export companies.

The Illinois Regulatory Assistance Program works to make state rules more flexible, cost effective or less restrictive for small businesses. The program evaluates the impact of proposed rules and gives small businesses the opportunity to have their voices heard in the rulemaking process.

Small Business InnovationResearch(SBIR)/Small BusinessTechnology Transfer (STTR) State Matching Program provides a state match of up to $50K to companies that have received a Phase 1 award through federal SBIR or STTR program. The Illinois Angel Investment Tax Credit Program encourages investment in innovative, early-stage companies to help them obtain the working capital needed to further their growth in Illinois. Investors in

certified companies can apply for a state tax credit equal to 25% of their investment. The Illinois New Markets Development Program (NMDP) seeks to revitalizes low-income communities by encouraging the deployment of federal New Markets Tax Credit investments in Illinois.

In-Vent, Illinois Innovation Venture Fund(SSBCI) provides investments for early-stage startups throughout Illinois.

Advantage Illinois Program Enhancing access to capital f or Illinois businesses is a top priority. The Brookings Institution has noted that more than 95% of new jobs are derived f rom business expansion or start up activity. Small businesses are the backbone of the Illinois economy, and the Advantage Illinois program is there to assist. By working with the state's banking community and venture capitalists, we'll help entrepreneurs and small businesses start up, expand and create new jobs at a faster rate.

Advantage Illinois will accelerate investments and ease the credit crunch for small businesses, thanks to more than $78 million from the federal State Small Business Credit Initiative (SSBCI) of the Small Business Jobs Act of 2010.

Click here for Advantage Illinois Participating Institutions ? Participating lenders accept business applications on a rolling basis and use their own underwriting standards and loan processes. These lending institutions are welcome partners in the Advantage Illinois program. Check back regularly, as we continually add new institutions to the list.

PARTICIPATION LOAN PROGRAM (PLP) With any PLP loan program, financial institutions identify potential opportunities for state participation:

? Standard Participation Loan Program (PLP) ? designed to enable small businesses to obtain medium to long-term financing, in the form of term loans, to help grow and expand their businesses. Department participation is subordinated to the lender and has a "below market" interest rate.

? Minority/Women/Disabled/Veteran-Owned Businesses ? similar to Standard PLP; however, the amount of financial support may range depending on loan term, MWDV majority control/ownership.

? Revolving Line of Credit (RLOC PLP) ? similar to Standard PLP except in the form of a revolving line of credit. Maximum term is two years and further support requires reapplication.

Funding may be used for many purposes, including but not limited to:

? start-up costs, ? working capital, ? business procurement, ? franchise fees, ? equipment, ? inventory, ? as well as the purchase, construction, renovation, or tenant improvements of an eligible place of

business that is not for passive real estate investment purposes.

Illinois Enterprise Zone Program The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief and improved governmental services. Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:

State Incentives and Exemptions

? Exemption on retailers' occupation tax paid on building materials ? Expanded state sales tax exemptions on purchases of personal property used or consumed in the

manuf acturing process or in the operation of a pollution control facility ? An exemption on the state utility tax for electricity and natural gas ? An exemption on the Illinois Commerce Commission's administrative charge and telecommunication

excise tax

? Enterprise Zone Construction Jobs Credits: Allows eligible project owners to deduct received tax credits from their taxable income

Exemptions are available for companies that make minimum statutory investments that either create or retain a certain number of jobs. These exemptions require a business to make application to, and be certif ied by, the Illinois Department of Commerce. Local Incentives and Exemptions In addition to state incentives, each zone offers local incentives to enhance business development projects. Each zone has a designated local zone administrator responsible for compliance and is available to answer questions. To receive a Certif icate of Eligibility f or Sales Tax Exemption, you must contact the local zone administrator of the zone into which purchased building materials will be incorporated.

Illinois Department of Commerce

Dear Illinois Entrepreneur,

The Illinois Department of Commerce & Economic Opportunity is pleased to provide this Starting Your Business in Illinois Handbook to help you create, operate, or expand your business.

Starting and owning a business can be exciting and frightening. There are so many things to consider location, size, number of employees, ownership structure, and so on. Then, there are anxieties and concerns: "Where do I start?" "Am I in over my head?" "Will I make it?"

Start by having confidence! Familiarize yourself with this handbook and utilize programs and services available through the Illinois Department of Commerce. Our handbook is designed to answer many of your basic questions, and it's geared toward smaller companies, which make up over 98% of all businesses in Illinois.

To make your business successful, you also need to know about regulations, requirements, and other aspects of starting and running a business -- have your licenses, permits, and registration f orms submitted and approved bef ore you open your door.

Our handbook of fers a great deal of inf ormation, but it should not be your only reference. Rules and regulations are constantly changing, and updates are available on many state agencies' websites. And remember to check with both your city clerk and county clerk's offices before undertaking any new business venture to comply with local license or registration requirements.

In addition to this handbook, our First Stop Business Information Center (First Stop) provides a wide range of resources and specialized assistance f or current and prospective entrepreneurs and small business owners.

For more information about State of Illinois services and requirements that apply to your new business, please contact us:

Illinois Department of Commerce First Stop Business Information Center

500 East Monroe Springfield, IL 62701

800.252.2923 TTY: 800.785.6055 ceo.support@illino is.go v

We look forward to connecting you with resources, experts, tools, and opportunities that translate into endless possibilities!

Starting Your Business in Illinois Handbook / 1

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download