Department of Revenue Portal
Department of Revenue Phone
217-782-3336
Name Reservation Required?
Yes
Taxpayer Portal
Comprehensive State Guide

General Business Information

ILLINOIS:

When considering whether or not to start a small business, there are several factors to keep in mind while determining where you would start your business. Fit Small Business compiled a 2018 ranking of all 50 states to determine the best states to start a small business, using the following categories:

  • Taxes – This includes corporate, sales, property tax, individual income, and unemployment insurance tax rates. The ranking demonstrates how much you can expect that your business would have to pay in taxes in the state ranked.
  • Labor Market – This category was assessed by including unemployment rates well as education levels (% of adults ages 25 to 34 who have attained at least a bachelor’s degree). This is meant to measure availability of desirable employees and the overall strength of this market in the state ranked.
  • Cost of Living – This includes costs of utilities, grocery, healthcare, housing, and transportation.
  • Quality of Life – This category is based on access to education, physical safety, and healthcare.
  • Cost to Start a Business – Using per capita income in the state ranked, this is meant to evaluate costs to staff your business as well as the per sq. ft/year cost to rent a commercial building.
  • Startup Activity – Meant to illustrate how likely new businesses are to succeed or fail in the state ranked, this represents the # and survivability of new businesses in that state.
  • Access to Capital – This assesses the likelihood of your business attaining startup capital by evaluating the size and # of small business loans granted and by measuring access to capital based on the availability and amount of venture capital funds.

Taking into account these factors, the survey ranked Illinois 26th out of the 50 states, with each of the categories above ranked accordingly:

  • Taxes: 29 out of 50
  • Labor Market: 15 out of 50
  • Cost of Living: 24 out of 50
  • Quality of Life: 26 out of 50
  • Cost to Start a business: 25 out of 50
  • Startup Activity: 9 out of 50
  • Access to Capital: 27 out of 50

The birthplace of Jimmy John's, the state of Illinois may rank well in startup activity, size of economy, and labor cost, but a 2018 survey found Illinois the least accommodating state in the nation for small businesses. On the bright side, it has one of the oldest NFL teams, has deep roots in jazz history, and has an entire indie folk album about it! In 2015, according to the SBA, small businesses in Illinois employed about 45.5% of the private workforce, which is nothing to sneeze at while considering if Illinois is the right place for you and your business!

Illinois Department of Revenue
JAMES R. THOMPSON CENTER - CONCOURSE
LEVEL100 WEST RANDOLPH STREET
CHICAGO, ILLINOIS 60601-3274
P  217-782-3336

Portal Link

Illinois Secretary of State
213 State Capitol
Springfield, IL 62756
P  217-785-3000

Portal Link


Small Business Advocacy
Illinois District Office

500 W. Madison St. suite 1150
Chicago, IL 60661
P  312-353-4528

Portal Link

Business Filing Fees

LLC Filing Fee
$150.00
Incorporation Filing Fee
$175.00

Tax Information

Tax Type
Applicable
Rate / Fee
Due Date
Corporate Income Tax
Applicable:
Yes
Applicable:
9.50%
3/15
Sales Tax
Applicable:
Yes
Rate:
6.25%
Due Date:
20th of the month following the reporting period
Property Tax
Applicable:
No
Rate:
N/A
Due Date:
N/A
Unemployment Tax
Applicable:
Yes
Rate:
3.175 - 3.575%
Due Date:
The end of the month following the end of each calendar quarter
Annual Report Required?*
*(C-Corp & LLC only)
Applicable:
Yes
Rate:
Corporations - $75 + minimum $25 franchise tax. Domestic corporations may file online for a $50 expedite fee. // LLC's - $75. Filing online requires a $50 expedite fee.
Prior to the first day of the registration anniversary month. So if you incorporated or foreign-qualified on February 14th, then your annual report is due January 31.
File Report

Additional Information

New Hire Reporting Required?
Yes
E-Verify Required?
No
Comprehensive State Guide

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