Documents and Forms Needed for Illinois Sole Proprietorship Laws

By Joe Stone

Illinois law requires a sole proprietorship to register with various state and local government agencies as a condition of doing business. All sole proprietors must register with the Illinois Department of Revenue and obtain a business license in the city or county where the business is located. Additional registration requirements depend on other factors, such as whether the sole proprietor uses an assumed name, also known as a DBA, or if the business has employees.

Department of Revenue Registration

All sole proprietors doing business in Illinois must register with the Illinois Department of Revenue by filing an Illinois Business Registration Application, called Form Reg-1. The sole proprietor can download the application from the department's website and file by mail, or submit the application online. The sole proprietor must file the form before making any purchases or sales, and before hiring an employee. After processing the application, the department returns a certificate of registration, which the sole proprietor must prominently display where the business operates.

Local Business License

Local municipalities require a license for any business operating within its jurisdiction. In most instances, the license requirement is specific to the type of business operation, such as operating a filling station or handling hazardous materials. If a license is not specified for a particular type of business, a general business license is required. A local business license is generally valid for a specific period of time; the sole proprietor must renew it before it expires to continue doing business in the municipality.

Ready to start your LLC? Start an LLC Online Now

Assumed Business Name Application

Illinois law requires every sole proprietor using an assumed name for his business to register the assumed name with the county clerk where the business is located. The county clerk provides the application to register the assumed name. After filing the application with the clerk, the applicant must take receipt of the application to an approved newspaper and publish it as a legal notice once a week for three consecutive weeks. The applicant completes the process by filing a certificate of publication prepared by the newspaper with the county clerk.

Employer Registration

If a sole proprietor's business involves hiring employee, the sole proprietor must file a form UI-1, a Report to Determine Liability Under the Illinois Unemployment Insurance Act, with the Illinois Department of Employment Security. The sole proprietor must file this form within 30 days of starting business. The form is available for download from the IDES's website. The purpose of the form is to determine whether the sole proprietor is required to pay contributions to the IDES under the Illinois Unemployment Insurance Act.

Ready to start your LLC? Start an LLC Online Now
Sole Proprietorship in Charlotte, NC



Related articles

Difference in Business License & Registering a Business

Starting a business can be complicated. In addition to hiring employees, finding a location and establishing clientele, new business owners must also ensure they properly register with government authorities and obtain all necessary government licenses. Without the proper registration and licensing, a business can face fines and penalties. Registration and licensing requirements vary between states and localities.

How to File a DBA in Georgia

Filing a DBA, or "doing business as" document, allows a business to operate under a different name than the name used when it was first created in Georgia. A DBA may also be referred to as a trade name, a fictitious business statement or an assumed business name. In Georgia, a DBA is referred to as a trade name, and a business that wants to use a DBA must complete and file a specific form before doing so. All businesses registered with the Georgia Secretary of State or a local county government must file a DBA form to operate under a different name, including corporations, limited liability companies and partnerships.

The Requirements of a Sole Proprietor in Pennsylvania

Sole proprietorships are common business entities because they are simple to set up, and have relatively few filing requirements. By definition, a sole proprietorship is owned by one person, who remains personally liable for the debts of the business. Most states, including Pennsylvania, do not require sole proprietors to register the business. However, depending on the business type, a business owner may be required to file for licenses, permits and tax registration.

LLCs, Corporations, Patents, Attorney Help LLCs

Related articles

New Jersey LLC Requirements

New Jersey LLC requirements are primarily set forth in the New Jersey Limited Liability Company Act, which specifies ...

Washington Laws Governing Sole Proprietorship

If you run a business alone and do not form a company, the law considers you to be a sole proprietor. This style of ...

Washington State LLC Laws

Washington State enacted its LLC laws in 1995, called the Washington Limited Liability Company Act. The LLC laws ...

How to Register a Farm Business in Illinois

When starting a farm in Illinois, you must take several steps to ensure that your business is properly registered and ...

Browse by category
Ready to Begin? GET STARTED