IL Business License Basics
If you own a business in Illinois you are required to have a license to operate. There are many different types of Illinois business licenses and permits that are required by various government entities at federal, state and local levels. An operating license is the basic type of business license that most all businesses will be expected to have.
Each level of government has specific regulations and requirements that must be met before a business can get a license. If you don’t know the licensing rules in Illinois and follow them it could result in expensive fines and putting your business in jeopardy.
Types of Business Licenses in Illinois
Federal Business Licenses – The U.S. government has a number of agencies that regulate and supervise business activities. If your business takes part in one of these federally regulated activities you will need to get a federal business license.
Activities that will be required to get a federal business license include:
- Alcohol manufacturing, importing and sales
- Agriculture
- Firearm dealing, importing and manufacturing
- Ammunition and Explosives dealing, importing and manufacturing
- Aviation
- Wildlife related activity
- Mining
- Drilling
- Commercial fishing
- TV and radio broadcasting
- Trucking
State Business Licenses – Nearly all Illinois businesses will need to obtain some kind of state business license in order to legally operate. At the minimum a business will need to get a professional or occupational license. Illinois business licenses are typically used for tax purposes.
Local Business Licenses – Local Illinois governments and municipalities also grant business licenses. All businesses will be required to acquire some type of local business license in order to operate in Illinois.
Permits – Permits are more specific to a certain type of business within an industry. Permits have a wide selection of purposes from parking to product sales.
How to Get a Illinois Business License
The steps you will need to take to obtain a business license in Illinois will vary depending on which kind of business license you need. Regardless of what type of license you are hoping to get you will have to fill out application form(s) and supply detailed information about your business.
If you are starting a business or expanding your business you'll have numerous forms to fill out. Be prepared to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners decide exactly what type of Illinois business licenses they need to get, links to websites, applications and instructions. If you’re just starting a business and need help with licensing, the SBA is the perfect place to learn more.
Maintaining Your Illinois Business License
Once you get your Illinois business licenses and permits you must still maintain them yearly to keep them up to date. The guidelines below are recommended if you want to ensure your business license is in good standing.
- Make copies of your business licenses and permits.
- Track when licenses and permits need to be renewed.
- Follow the regulations for displaying your business license.
- If you would like to change or expand your business make sure to verify whether you need additional permits or business licenses.