The type of business entity you choose will depend on three primary factors: liability, taxation, and record-keeping. Before you establish a business, you may consider consulting with a Corporate/Business Law Attorney or Certified Public Accountant (CPA), who specializes in your industry, for advice about what type of business entity will meet your business needs and what your legal obligations will be.
You must register your business entity with the proper government agency, once the most appropriate business entity is determined :
- Sole Proprietors and General Partnerships, operating under an assumed name, must register with the Cook County Clerk's Office.
- All other business entity types (i.e. Limited Partnership (LP), Limited Liability Partnership (LLP), Limited Liability Corporation (LLC), Corporation, or Not-for-Profit Corporation (NFP)) must register with the Illinois Secretary of State
Accordingly, you, or your licensed representative, must also register for your business taxes with the U.S. Internal Revenue Service (IRS) and Illinois Department of Revenue (IDOR). The City of Chicago business tax registration is part of the business license application process.
For additional information about business and tax registration, please review the chart below:
Accordingly, you, or your licensed representative, must also register for your business taxes with the U.S. Internal Revenue Service (IRS) and Illinois Department of Revenue (IDOR). The City of Chicago business tax registration is part of the business license application process. For additional information about business and tax registration, please review the chart below:
Cook County | Assumed Business Name Registration The Clerk's Office registers business names known as "assumed names" for new businesses in accordance with Illinois law. An assumed name is issued to any business entity that uses a name other than the name(s) of the individual(s) who own or operate the business. For example, a business called "John Jones, P.C." (i.e. owner's full name and title) does not have to file an assumed name, but "Jones Wrecking" does. | 50 W. Washington St. West Concourse Level Suite 114 Chicago, IL 312.603.7790 |
State of Illinois | Register with the Secretary of State If you plan to do business as a legal business entity in Illinois, regardless if you are based in Illinois or not, you will need to register with the Illinois Secretary of State. | 50 W. Washington St. West Concourse Level Suite 1240 Chicago, IL 312.793.3380 |
Obtain an Illinois Department of Revenue (IDOR) Account ID Number (Formerly Illinois Business Tax Number – IBT) You must register with IDOR if you conduct business in Illinois, or with Illinois customers. This includes sole proprietors (individual or husband/wife), and all legal business entities, including exempt organizations, who plan to hire employees, buy or sell products wholesale or retail, or manufacture goods. | 555 W. Monroe 11th Floor Chicago, IL 217.785.3707 and/or email: | |
US Government | Obtain an Employer Identification Number (EIN) An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a legal business entity. Businesses are required to obtain an EIN to file and pay any federal tax obligation. You may register for an EIN with the United States Internal Revenue Service (IRS). IRS Guide to Starting a Business | 230 S. Dearborn St. Chicago, IL 800.829.4933 |
Apply Online Now Publication
15PDF provides information on employer tax responsibilities related to taxable wages, employment tax withholding and which tax returns must be filed. More complex issues are discussed in
Publication 15-APDF and tax treatment of many employee benefits can be found in Publication 15. We recommend employers download these publications from IRS.gov. Copies can be requested
online (search “Forms and Publications) or by calling 1-800-TAX-FORM. We cannot process your application online if the responsible party is an entity with an EIN previously obtained through the Internet. Please use one of our other methods to apply. See
How to Apply for an EIN. We apologize for any inconvenience this may cause you.Step 1: Determine Your Eligibility
Step 2: Understand the Online Application
Step 3: Submit Your Application
Employer Tax Responsibilities Explained (Publications 15, 15-A and 15B)
Important
Purpose of an Employer Identification Number
Employer Identification Numbers are issued for the purpose of tax administration and are not intended for participation in any other activities (e.g., tax lien auction or sales, lotteries, etc.)
Exempt Organization Information
If you believe your organization qualifies for tax exempt status (whether or not you have a requirement to apply for a formal ruling), be sure your organization is formed legally before you apply for an EIN. Nearly all organizations exempt under IRC 501(a) are subject to automatic revocation of their tax-exempt status if they fail to file a required annual information return or notice for three consecutive years. When you apply for an EIN, we presume you’re legally formed and the clock starts running on this three-year period.
Example: Your organization applies for an EIN in November 2014 and chooses a December accounting period. Your first tax period would end on December 31, 2014, and your first return or notice (if your organization does not meet one of the few exceptions to the annual reporting requirement) would be due May 15, 2015. You would be subject to automatic revocation of your exemption if you fail to file for the three periods that end December 31, 2016 (return/notice due May 15, 2017) or for any consecutive three-year period thereafter.