Step by Step Guide to Starting a Business ... - Velocity Law



Step by Step Guide to Starting a Business in IllinoisThis guide will inform you of various legal requirements and direct you to additional resources. If you have any questions contact the First Stop Business Information Center of Illinois or call 800-252-2923 or TDD: 800-785-6055 and a staff member will assist you. 1.Where Do I Start? 2.?How Do I Register My Business or Obtain a Business License? 3.?Determine the Structure of the Business ? ? 3a.?Sole Proprietorship and General Partnership? ? 3b.?Limited Partnership? ? 3c.?Limited Liability Company? ? 3d.?Registered Limited Liability Partnership? ? 3e.?"C" Corporation? ? 3f.?"S" Corporation4.?Where Do I Register the Name of My Business?5.?What If I Have Employees? 6.?What Posters Am I Suppose to Display? 7.?How Do I Protect My Inventions, Products or Logos? 8.?"Is there anyplace I can get help with financing, marketing, exporting, or other questions I have about running a business?"? 1.?Where Do I Start? Feasibility ChecklistA feasibility checklist is a tool that is used to evaluate the potential success of a new or existing business opportunity.? Business PlanA business plan is vital in determining the credibility of a new business opportunity. It can be used as a management tool and may be required if financing is needed. It also demonstrates to prospective investors a well defined course of action.? Business Feasibility Checklist (pdf)Business Plan (pdf)2.?How Do I Register My Business or Obtain a Business License? Illinois Department of Professional Regulation The Illinois Department of Professional Regulation (IDPR) is the main licensing agency for the State of Illinois for most professions. Individuals must be licensed prior to conducting business as one of the listed professions.IDPR's Alphabetical Listing.3.?Determine the Structure of the BusinessThere are several ways to organize businesses in Illinois. They are Sole Proprietorships, General and Limited Partnerships, Limited Liability Partnerships (LLP), Limited Liability Companies (LLC), "S" Corporations and "C" Corporations. Before selecting a business type, consult an attorney or accountant for assistance in determining which one is best for your business. Sole Proprietorship and General PartnershipWhen a business name is different from the owner(s) full legal name(s), the Illinois Assumed Name Act requires sole proprietorships and general partnerships to register with their local county clerk's office for registration under the Assumed Name Act. Sole proprietors must have a Federal Employer Identification Number if they pay wages to one or more employees, or file any pension or excise tax returns including those of alcohol, tobacco or firearms. Employer's Tax GuideLimited PartnershipA Limited Partnership is an organization made up of a GENERAL PARTNER, who manages a project, and limited partners, who invest money, but have limited liability and are not involved in day-to-day management. Typical limited partnerships are in real estate, oil and gas, and equipment leasing and family partnerships.LP FormsLimited Partnership Section501 South Second StreetRoom 357, Howlett BuildingSpringfield, Illinois 62756217-785-8960TDD: 1-800-252-2904 Limited Partnership Section17 North State StreetRoom 1137Chicago, Illinois 60602312-793-2872TDD: 1-800-252-2904 Limited Liability Company A Limited Liability Company (LLC) is the non-corporate form of doing business that provides its owners with limited liability, flow-through tax treatment and operating flexibility through participation in management of the business. The LLC is well suited for every type of business venture, except banking and insurance which are prohibited by Statute. Examples of acceptable businesses are: farming, agricultural services, mining, construction, manufacturing, transportation, wholesale and retail trade, investment companies, insurance agents, real estate brokers, all types of real estate ventures, hotels, personal and business services, automotive sales and services, amusement and recreation, health services, accounting, architecture and other professions, just to name a few.LLC Forms Limited Liability Company SectionRoom 351, Howlett BuildingSpringfield, Illinois 62756 217-524-8008TDD: 1-800-252-2904 Registered Limited Liability PartnershipIf organized as a Registered Limited Liability Partnership under a specific section of the General Partnership Act, partners are not liable for the debts, obligations and liabilities of, or chargeable to the partnership arising from negligence, wrongful acts, omissions, misconduct or malpractice committed while the partnership is a Registered Limited Liability Partnership.RLLP FormsRegistered Limited Liability Partnership SectionRoom 357, Howlett BuildingSpringfield, Illinois? 62756 217-524-4952TDD: 1-800-252-2904 "C" CorporationA corporation is a distinct legal entity and is the most complex form of organization. A corporation may sell shares of stock, which are certificates indicating ownership, to as many people as is desirable. The shareholders then elect a board of directors, which elects a president and other officers who run the company on a day-to-day basis. Among the advantages of corporate formation are limited liability of the shareholder and ease of transferring ownership. If the name of the business includes the word "Corporation," "Inc.","Incorporated" or "Corp.", then the business must be incorporated.?Corporation FormsBusiness ServicesRoom 328 Howlett BuildingSpringfield, Illinois 62756217-782-6961?TDD: 1-800-252-2904 Business Services69 W. Washington, 12th FloorChicago, Illinois 60602312/793-3380TDD: 1-800-252-2904 "S" CorporationElecting S Corporation status is an option that must be made through the Internal Revenue Service (IRS) when starting a business. In general, an S Corporation passes through income and expenses to its shareholders, who then report them on their own income tax returns. To qualify for S Corp. status, a corporation must meet several requirements, one of which limits the number of shareholders. Get online or contact:Corporation FormsBusiness ServicesRoom 328 Howlett BuildingSpringfield, Illinois? 62756217-782-6961?TDD: 1-800-252-2904 Business Services69 W. Washington, 12th FloorChicago, Illinois 60602312/793-3380TDD: 1-800-252-2904 4.?Where Do I Register the Name of My Business? Choosing A Business NameWhen the business name is different from the owner's full legal name, the "Assumed Name Act" requires you to register the business name with your county clerk's office, regardless to the structure of the business.? Secretary of State Database of registered corporate names.Business Tax Registration Internal Revenue Service (IRS)The Internal Revenue Service has created "Your Business Tax Kit." Included in this kit is the IRS's criteria for determining whether a worker is an employee or an independent contractor as well as a Tax Guide for Small Business and various registration forms. Internal Revenue ServiceForms Distribution CenterPO Box 8902Bloomington, Illinois 61702-89021-800-829-3676?TDD: 1-800-829-4059 Illinois Department Of Revenue (IDOR)In Illinois, most business are required to be registered and/or licensed by the IDOR. If you plan to hire employees, buy or sell products wholesale or retail, or manufacture goods, you must register with the IDOR. To obtain the IDOR's Business Registration Kit, contact:Illinois Department of Revenue Central Registration Division PO Box 19030Springfield, Illinois 62794-90301-800-732-8866TDD: 1-800-544-5304 Local Tax Registration and RequirementsSome municipalities and counties impose their own taxes in addition to the state and federal taxes that most businesses are responsible for.? New businesses should contact their local revenue department to determine if additional taxes apply to their business activities. Many communities restrict advertising, regulate pricing or require zoning permits. Contact your city or county clerk for information on local restrictions.Licenses And Permits Required By LawSome occupations and occupational activities are regulated by federal, state and local governments to protect the public's health, safety and welfare by ensuring that individuals who are engaged in these vocations or professions are qualified.To determine if your occupational activities are regulated contact the First Stop Business Information Center at:firststop@? 5.?What If I have Employees? Unemployment Insurance Typically a business is required to make unemployment insurance contributions to the Illinois Department of Employment Security (IDES) if they have: 1) employed one or more workers in each of 20 or more calendar weeks; or 2) paid at least $1,500 in total wages during the calendar quarter.? IDES offers a New Employer Packet. To request this packet, contact:Department of Employment SecurityDivision of Unemployment Insurance401 South State StreetChicago, Illinois 60605312-793-4880TDD: 1-800-526-0844 Illinois Department of Professional RegulationThe Illinois Department of Professional Regulation (IDPR) is the main licensing agency for the State of Illinois.? IDPR provides an on-line database listing every individual licensed with their agency.?Go to the IDPR web site and click on "License Look-up" to learn if an individual is licensed in a certain profession or determine if a licensed number is valid. For other business/professional licensing questions contact:firststop@Anti-Discrimination LawsThe Equal Employment Opportunity Commission (EEOC) is responsible for the enforcement of all anti-discrimination laws. These laws include: Title VII of the Civil Rights Act of 1964, Equal Pay Act, Age Discrimination in Employment Act, Rehabilitation Act of 1973, Title I of the Americans with Disabilities Act, and the Civil Rights Act of 1991. Business owners should acquaint themselves with these laws because they affect the company's hiring practices. To order information on these laws, contact:EEOC Publications OfficePO Box 12549Cincinnati, Ohio 452121-800-669-3362?Fax: 513/489-8692TDD: 1-800-800-3302Material Orders Only TDD: 1-800-669-6820 Workers' Compensation InsuranceUnder the Workers' Compensation and Workers' Occupational Diseases Acts, an employer is required to provide insurance for accidental deaths, injuries and occupational diseases of employees arising in the course of employment. Temporary workers who normally do not receive company benefits are still provided workers' compensation. Insurance generally is purchased through private companies. Companies can apply to the Workers' Compensation Commission to become self-insured. For a free handbook, contact: Illinois Workers' Compensation Commission100 West Randolph, 8-200Chicago, Illinois 60601Toll Free: 1-866-352-3033312-814-6611TDD: 312-814-6519 Employment Service/Labor Market InformationThe Illinois Department of Employment Security can assist you with finding new employees. Find out about labor market conditions and industry projections.finding new employees labor market conditions and industry projectionsWage Withholding for Child SupportThe Illinois Department of Public Aid is the Child Support Enforcement Agency for the State of Illinois. If you (as an employer) are served a Notice of Withholding, you are required by law to withhold a portion of an employee's income for payment of child support. For a copy of "Ensuring A Child's Birthright: An Illinois Employer's Guide To Income Withholding", contact:Illinois Department of Public AidDivision of Child Support EnforcementEmployer Verification UnitPO Box 19405Springfield, Illinois 62794-9405217-782-1380TDD: 217-524-3148In Cook County: 312-793-3289TDD: 312-814-1580 Immigration Reform and ControlThe Federal Immigration Reform and Control Act of 1986 requires every employer to keep on file a form for every employee certifying that employee's identity and work eligibility. For further Information contact:Immigration and Naturalization Service219 South DearbornChicago, Illinois 60604312-353-7334?TDD: 1-800-767-1833 6.?What Posters Am I Supposed to Display?Equal Employment Opportunity Commission (EEOC)Businesses with 15 or more employees must display the poster from the EEOC entitled Equal Employment Opportunity is THE LAW. This poster is available upon request, contact: EEOC Publications OfficePO Box 12549Cincinnati, Ohio 452121-800-669-3362?Fax: 513/489-8692TDD: 1-800-800-3302Material Orders Only TDD: 1-800-669-6820 Illinois Workers' Compensation CommissionEmployers need to display a workplace notice from the IIC regarding workers' compensation. Click here for the form. U.S. Department of Labor (USDOL)Businesses with one or more employees must display these posters to inform employees of their rights: Occupational Safety and Health Administration's Safety poster, Family Medical Leave Act poster, Fair Labor Standard Act poster and the Employee Polygraph Protection Act poster. To request posters, contact: U.S. Department of LaborEmployment Standards AdministrationWage and Hour Division509 West Capitol, Suite 205Springfield, IL 62704217-492-4060.Illinois Department of Employment Security (IDES)The Illinois Department of Employment Security poster is included in the IDES Employer Start-Up Kit. Department of Employment SecurityDivision of Unemployment Insurance401 South State StreetChicago, Illinois 60605312-793-4880?TDD: 1-800-526-0844 The Illinois Department of Labor (IDOL) requires employers to display the poster entitled "Notice to Employers and Employees" which fulfills all IDOL's posting requirements for businesses in Illinois. For IDOL posters or more information about labor laws, contact:Illinois Department of Labor (IDOL) (Chicago/Northern Illinois)?Illinois Department of Labor160 North LaSalle, Suite C-13001Chicago, Illinois 60601312-793-2800 (Central Illinois Area)Illinois Department of LaborWest Old Capitol Plaza, Room 300Springfield, Illinois 62701217-782-6206 (Southern Illinois)Illinois Department of Labor2309 West Main St.Marion, Illinois618-993-7271 ? 7.?How do I protect my inventions, products or logos? Trademarks, Patents and CopyrightsA trademark, servicemark or tradename is a word, name symbol, device or combination thereof, adopted and used by a manufacturer, service provider or merchant to identify goods and services in order to distinguish them from others. A patent gives legal recognition to the inventor, creator or discoverer of a new product, procedure or composition of matter. You may obtain a patent or federal trademark by fulfilling all the requirements of the U.S. Patent and Trademark Office.? For more information, contact: Patent & Trademark DepositoryIllinois State Library300 South 2nd StreetSpringfield, Illinois 62701-1796217-782-5659?TDD: 800-526-0844The Harold Washington Library Center400 South State StreetChicago, Illinois 60605312-747-4450?TDD: 312-747-4499.State trademarks, servicemarks and tradenames can be obtained through:The Secretary of StateBusiness ServicesTrademark DivisionRoom 328 Howlett Office BuildingSpringfield, Illinois 62756217-524-0400.A copyright is a form of protection provided to an author of original works including literary, dramatic, musical, artistic, sound recordings and certain other intellectual works.?The Copyright OfficeLibrary of CongressWashington, D.C. 20559202/707-3000TDD: 202/707-67378.?"Is there anyplace I can get help with financing, marketing, exporting, or other questions I have about running a business?" The ISBDCN is made up of Small Business Development Centers, Procurement Technical Assistance Centers, International Trade / NAFTA Centers, Small Business Incubators, the Office of Minority Business Development and the Office of Women's Business Development. Training courses and free one-on-one counseling are offered through ISBDCN.?Illinois Small Business Development Center Network (ISBDCN) Small Business Environmental Assistance Helpline800-252-3998 Small Business Administration (SBA)The SBA offers educational, financial and training programs, advisory services, and publications free or at a nominal fee. The agency also offers specialized programs for women business owners, minorities, veterans, international trade and rural development. For more information contact the SBA at:Small Business Administration (SBA)500 W. MadisonRoom 1250Chicago, IL 60661312-353-4528TDD: 312-886-5108Small Business Administration (SBA)511 W. Capitol Ave.Suite 302Springfield, IL 62704217-492-4416TDD: 217-492-4418Service Corps of Retired Executives (SCORE)SCORE and the SBA conduct seminars throughout Illinois on starting and running a business, as well as provide individual counseling.? Service Corps of Retired Executives (SCORE) For more information on SCORE, call Voice: 312-353-7723 and TDD: 312-886-5108Business and Industry Data Centers (BIDC)BIDC affiliates use census information and other economic and demographic data to help small business owners plan, manage and expand their businesses. Demographic information that is available includes the population, including age, race, and sex, income and the labor force in a given area. Accessible economic information includes the number and kinds of businesses, employment, payroll and sales information.? Business and Industry Data Centers (BIDC) For more information call 217-785-6117.Illinois Small Business Environmental Assistance ProgramThe Illinois Small Business Environmental Assistance Program provides companies with assistance in determining permit requirements under the Illinois Environmental Protection and Clean Air Acts. This service?is non-regulatory and confidential. Illinois Small Business Environmental Assistance ProgramSmall Business Tax WorkshopsThe Small Business Tax Workshops are conducted by the Internal Revenue Service, Illinois Department of Revenue, Illinois Department of Employment Security, Social Security Administration and the Small Business Administration. These workshops provide federal and state tax information for new and existing small business owners. For more information contact the local Small Business Coordinator at:Internal Revenue ServiceSmall Business Coordinator230 South Dearborn St.Chicago, Illinois? 60604312-886-7802TDD: 1-800-829-4059Illinois Small Business Assistance800-252-2923TDD: 800-785-6055firststop@ For any questions or concerns regarding your business or the contents of this web page, please contact the First Stop Business Information Center1-800-252-2923TDD: 800-785-6055All of these publications are also available free by calling the DCEO First Stop office at 1-800-252-2923. ................
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