DCEO Small Business Assistance Begin Here Step by Step Guide This guide will inform you of various legal requirements and direct you to additional resources. If you have any questions contact the Business Information Center at 800-252-2923 (TOO: 800-785-6055) or Submit a Question and a staff member will assist you. 1. Where Do I Start? 2. What ownership structure choices do I have? 3. Where do I register a business? 4. What are my responsibilities as an employer? 5. How do I protect my invention, product or idea? 6. Where can I go for help? Where Do I Start? Feasibility Checklist A feasibility checklist is a tool that is used to evaluate the potential success of a new or existing business opportunity. Business Plan A business plan is vital in determining the credibility of a new business opportunity. also demonstrates to prospective investors a well defined course of action. It can be used as a management tool and may be required if financing is needed. It Business Feasibility Checklist (PDF) Business Plan (PDF) What ownership structure choices do I have? There 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 attomey or accountant for assistance in determining which one is best for your business. Sole Proprietorship and General Partnership When 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 Guide Limited Partnership A 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 Forms o Limited Partnership Section 501 South Second Street Room 357, Howlett Building 217-785-8960 o Limited Partnership Section 17 North State Street Room 1137 312-793-2872 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 o Limited Liability Company Section Room 351, Howlett Building
217-524-8008 Limited Liability Partnership If organized as a 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 Limited Liability Partnership. LLP Forms o Limited Liability Partnership Section Room 357, Howlett Building 217-524-4952 "c" Corporation A 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 ofthe business includes the word "Corporation," "lnc.","lncorporated" or "Corp.", then the business must be incorporated. Corporation Forms..s..Corporation Room 328 Howlett Building 217-782-6961 17 North State St, Room 1137 312-793-3380 TOD: 1-800-252-2904 Electing 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 retums. 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 Forms Room 328 Howlett Building 217-782-6961 TOD: 1-800-252-2904 17 North State St., Room 1137 312-793-3380 Secretary of State Database of registered corporate names Where do I register a business? Registering A Business Name When 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. Find Your County Clerk Business Tax Registration Internal Revenue Service (IRS) The Internal Revenue Service has information such as a checklist for a new business and selecting a business structure. Learn about operating a business with employees, deductions and credits, recordkeeping and accounting methods. Additional resources include the Small Business Tax Calendar, Tax Topics for Businesses, and Frequently Asked Questions. For more information contact: Internal Revenue Service To Obtain IRS Forms: Forms Distribution Center PO Box 8902 Bloomington, Illinois 61702-8902 1-800-829-3676 TOD: 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, manufacture goods, you must register with the IDOR. To obtain information contact: buy or sell products wholesale or retail, or
Illinois Oepartment of Revenue Central Registration Division PO Box 19030 Springfield, Illinois 62794-9030 1-800-732-8866 TDD: 1-800-544-5304 Local Tax Registration and Requirements Some 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 Law The Illinois Department of Financial and Professional Regulation (IOFPR) 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. IOFPR's Occupational Listing What are my responsibilities as an employer? Unemployment Insurance Typically a business is required to make unemployment insurance contributions to the Illinois Oepartment 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. IOES offers a New Employer Packet To request this packet, contact: Oepartment of Employment Security Division of Unemployment Insurance 33 South State Street Chicago, Illinois 60603 (800) 247-4984 (866) 212-8831 TTY Illinois Department of Financial and Professional Regulation The Illinois Department of Financial & Professional Regulation (IDFPR) is the main licensing agency for the State of Illinois. IDFPR provides an on-line database listing every individual licensed with their agency. Visit the IDFPR 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. Anti-Discrimination Laws The 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 Office PO Box 12549 Cincinnati, Ohio 45212 1-800-669-3362 Fax: 513/489-8692 TOO: 1-800-800-3302 Material Orders Only TOO: 1-800-669-6820 http://eeoc.gov/employers Workers' Compensation Insurance Under the Workers' Compensation and Workers' Occupational Oiseases 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' ComDensation Commission 100 West Randolph, 8-200 Chicago, Illinois 60601 Toll Free: 1-866-352-3033 312-814-6611 TOO: 312-814-6519 Employment Service/Labor Market Information The Illinois Oepartment of Employment Security can assist you with finding new employees. Find out about labor market conditions and industry projections. https:llillinoisjoblink.illinois.gov finding new employees http://www.ilworkinfo.com labor market conditions and industry projections Wage Withholding for Child Support The Illinois Department of Healthcare and Family Services 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 Oepartment of Healthcare and Family Services Oivision of Child Support Enforcement Employer Verification Unit PO Box 19405 Springfield, Illinois 62794-9405 217-782-1380 TOO: 217-524-3148 In Cook County: 312-793-3289 TOO: 312-814-1580 Immigration Reform and Control The 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: U.S. Citizenship and Immigration Services 219 South Oearbom Chicago, Illinois 60604 312-353-7334 TOO: 1-800-767-1833 Required Posters for Illinois Employers The Illinois Oepartment of Labor's website has a listing of State and Federal posters employers are required to display in the workplace. Visit their website at http://www.state.il.us/agency/idoilposters/poster.htm for details on how to obtain each poster. How Do I Protect My invention, product or idea? Trademarks, Patents and Copyrights A 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: The Harold Washington Library Center 400 South State Street Chicago, Illinois 60605 312-747-4450 TOO: 312-747-4499 State trademarks, servicemarks and tradenames can be obtained through: The Secretary of State Business Services Trademark Oivision Room 328 Howlett Office Building 217-524-0400 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 Office Library of Congress Washington, O.C. 20559 2021707-3000 TOO: 2021707-6737 Where can I go for help? The Illinois Small Business Oevelopment Center Network is made up of Small Business Oevelopment Centers (SBOC), Procurement Technical Assistance Centers (PTAC), SBOC -International Trade Centers, Small Business Environmental Assistance Program (SBEAP) and the Business Information Center. Training courses and free one-on-one business advising are offered through the network. 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 ISBA) 500 W. Madison Room 1250 Chicago, IL 60661 312-353-4528 TOO: 312-886-5108 Small Business Administration ISBA) 511 W. Capitol Ave. Suite 302
Springfield, IL 62704 217-492-4416 TOO: 217-492-4418 SCORE - Counselors To America's Small Businesses SCORE and the SBA conduct seminars throughout Illinois on starting and running a business, as well as provide individual counseling. SCORE - Counselors To America's Small Businesses For more information on SCORE, call Voice: 312-353-7724 and TOO: 312-886-5108 Business and Industry Data Centers (BlOC) BlOC affiliates use census information and other economic and demographic data to help small business owners plan, manage and expand their businesses. Oemographic 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. For more information call 217-785-6117 Illinois Small Business Environmental Assistance Program The 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 Program Small Business Tax Workshops The Small Business Tax Workshops are conducted by the Internal Revenue Service, Illinois Oepartment of Revenue, Illinois Oepartment 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 Service Small Business Coordinator 230 South Oearborn St. Chicago, Illinois 60604 312-886-7802 TOO: 1-800-829-4059 http://www.irs.gov/businesses/small-businesses-&-self-employed/small-business-tax-workshops-and Webinars For any questions or concerns regarding your business or the contents of this web page, please contact the Business Information Center at 1-800-252-2923 a Question. TOO: 800-785-6055 or Submit