Step 1: Guide to Starting A Business

What Should I Do First?

Before you start applying for city licenses and permits, your business must be registered like any other business in the City of Chicago. This section will highlight these necessary steps.

Determining How To Structure Your Business: As a prospective business owner, you must first decide how to structure your business. There is no one legal structure that is for all businesses. Whether you're better off starting as a sole proprietor or choosing one of the more complex organizational structures such as a partnership, corporation or Limited Liability Company (LLC) usually depends on several factors. For further explanation of these terms, please see the Glossary of Terms at the City of Chicago Biz Connection: http://cityofchicago.org/smallbusiness.

Registering Your Business with the Illinois Secretary of State: After determining your management strategy, you may need to register your business with the Illinois Secretary of State. Registration forms are available online or in person at:

Illinois Secretary of State
Department of Business Services
69 W. Washington Suite 1240
Chicago, IL 60602
(312) 793-3380
http://www.cyberdriveillinois.com/departments/business_services/publications_and_forms/home.html

Locating Your Business: If you have not already found a location for your business, the City of Chicago's Biz Connection can offer you help. Biz Connection is located online at: http://cityofchicago.org/smallbusiness.

After finding a potential site, zoning regulations require that your business activity be permitted at your chosen location. You can find maps with zoning information for all of Chicago at the Department of Zoning, which can be reached online or in person at:

Chicago City Hall
121 North LaSalle Street, Room 905
Chicago, IL 60602
(312) 744-9042
http://cityofchicago.org/Zoning.

Receiving Your Federal Employer Identification Number (EIN) Once you have obtained a suitable business location, you are required by State and Federal law to register your business by obtaining a Federal Employer Identification Number (EIN). To apply for an EIN you must complete form SS4, which you can obtain by contacting:

Internal Revenue Service, Chicago Office
230 South Dearborn St. 24th Floor
Chicago, IL 60604
(800) 829-4933
http://www.irs.gov/.

Registering with the Illinois Department of Revenue: You may also need an Illinois Business Tax Number (IBT) which you can apply for online or in person at:

Illinois Department of Revenue
100 West Randolph, 7th Floor
Chicago, IL 60601
(217) 785 - 3707
http://www.revenue.state.il.us/Businesses/faq/busreg.html

Renovations and Construction: If you plan on renovating your business, remodeling a new building or otherwise beginning any construction, you are encouraged to visit the Department of Construction and Permits website at http://cityofchicago.org/dcap, which offers many helpful tools that will aid you in the construction process. These include a Permit Wizard to help you determine your permit needs and E-Permit which allows you to apply for certain permits online. The Department can be reached at:

City Hall Room 900
121 North LaSalle
Chicago, IL 60602
(312) 744-3449
http://cityofchicago.org/dcap.

The Application

Applications for a business license may be made in person or by mail.

Applicants must have:

• A driver's license, voter registration card, state identification card, or another official photo ID
• A Federal Tax Employment Identification Number (FEIN) (See above, if applicable)
• A State of Illinois Sales Tax Number (IBT) (See above, if applicable)

To apply for a business license, complete a Business License Information Form detailing your business activity, location, ownership details and other relevant information. We will use the information provided on the Business License Information Form to create a business account and a customized license application for your business.

There are two categories of businesses in this process: Sole Proprietorships, Corporations, Partnerships, Not-for-Profit Corporations, and Limited Liability Corporations and single person operators like Peddlers and Street Performers. Both types of Business License Information Forms are available below for download.

Please complete the appropriate Business License Information Form and return it to:

Chicago Department of Business Affairs and Consumer Protection
121 N. LaSalle, Room 800
Chicago, Illinois 60602-1288

You may also apply for a license in person. Please complete the Business License Information Form and bring it with you when you are ready to apply. The Department of Business Affairs and Consumer Protection is open for walk-in assistance, Monday - Friday, from 8:30 a.m. - 4:30 p.m.