Opening your doors to business in Chicago demands a lot of effort and prior planning. There are many procedures to start a business in Chicago. Though these are not complex, still, you need a proper research to make the process fast and cost-effective. You will need a legal entity and license to start your business. More importantly, you need to choose a proper business name and address to start with. To help you out, followings are a few tips to start a business in Chicago.
Plan your business idea
This is important to ensure long-term profits. Anyone can start a business. However, you cannot get success if you do not what you are doing. Before starting a business, you need to make everything clear in your mind. You should know your objective, potential buyers, and strategies.
Form your business
Starting your business is tough. A well-informed mind can take the right step. Once you are certain about your business objective, then you can go through the followings to start the process.
- Find out a proper and genuine name
If you have not decided on one, it is better to do a little research on Google. Make sure no one else has the same name. Choose a name and promote it on social media. Now you can buy the domain name.
- Get your legal entity
What will be the structure of your business? Are you interested in CORP, LLC, or, Sole Proprietor? The structure will decide the tax. The decision will depend on the probability of success and profits. Starting as Sole Proprietor is the cheapest as well as the easiest one. If you want, you can change the structure later. But keep in mind, the process might be tedious. It will demand a lot of paperwork and some expenditure. Therefore, it is suggested to decide the structure wisely to avoid last time confusion and change.
The process of getting a legal entity will be different depending on the structure. For example, if you choose Sole Proprietorship, you will be asked for Assumed Business Name Registration since you are not using the given name as your business name. For LLC, you need to deal with the IL Secretary of State. If you decide Corporation structure, you might need legal help.
- Get an EIN
After getting a legal entity, the next step is to get a Federal Employer Identification Number. It is not a compulsion for Sole Prop Structure. Instead of EIN, you can use your social security number to secure your business. However, experts suggest getting this number regardless of your structure. It will separate your business from personal life.
- Get your Account ID Number
Now you can get you Illinois Account ID Number from the IL Department of Revenue to register your business with IDOR. EIN and Account ID number is different. When EIN is the social security number for your business, the Account ID number is used to identify your business for tax purposes.
- Get a business license
A business license is not mandatory for all types of business. Moreover, the process will be different depending on the business. You need to research your specific business type to know about the procedures. Trade show booth rental displays can be the easiest way to get your business started.