Chicago is the most populated city in Illinois. According to the 2018 Census, the city’s estimated population reached 2,705,994, making it the third most populated metropolis in the entire US. People in and around the city opt to reside here due to its massive employment opportunities. The city has the reputation of being an international finance and technology hub in the country.
Due to its large labor pool composed of at least 4.63 million workers, more businesses continue to look for office space in Chicago to establish their companies. If you plan to try your business’s luck in the city, here is a step-by-step guide to thriving in the Windy City.
Step 1: Pick Your Business Entity
You and your business attorney and CPA must decide on the right entity for your business. You may either want to run a sole proprietorship if you are the only owner of the company. If you plan to manage the company with a partner, you can look into different types of business partnerships like general partnerships where each partner needs to agree on major decisions.
You may also choose limited organizations where the general partners manage the daily operation of the business. In contrast, limited partners put their investments in the company without any decision-making powers. Other types of partnerships include limited liability partnerships and qualified joint ventures.
Step 2: Register Your Business With The IRS
Before looking for office space in Chicago, all businesses operating in Chicago must have an Employer Identification Number (EIN) from the IRS. It is generally known as the Federal Tax ID Number. To help you understand how to register the business in the city, you can visit the IRS website. Better yet, you can visit the agency’s office located at 230 S. Dearborn.
Step 3: Register With IDOR
Businesses operating in Chicago and the entire state of Illinois must register their operation with the Illinois Department of Revenue (IDOR). It means that all types of enterprises, including retail, wholesale, manufacturing, or services must secure their permit from this agency. You can get your IDOR Account ID through their website to fill-up and download the REG-1 form then mail it to the designated address found on the form. You may also call 800-356-6302 to get more information or drop by the Chicago Office at 100 W. Randolph.
Step 4: Acquire A Chicago Business License
To fully operate in the city, you need to get a business license at the Small Business Centre located in Room 800 in 121 N. Lasalle. You need to fill up a Business Information Sheet to get a business license. Information that you must indicate in your application form includes your business name and other ownership information, the address where you plan to hold office, and a thorough description of your business activity. You may also include your EIN, IDOR Account ID number, and your file number from the State of Illinois.
These are the detailed steps when planning to start a business in Chicago. By complying with these instructions, you can get the assurance that your company will run smoothly. It will also let you avoid any problems with the law since you followed all the legal requirements for operating your new company in Chicago.