Number Pages In Legal Illinois Startup For Sole Proprietorship Forms For Free

If you prefer to operate as a sole proprietorship, you can do that and still get the Illinois business licenses you need. And, yes, you're still required to complete tax registration and apply for proper licenses and permits, even if you operate as sole proprietor.

Under Illinois law, all businesses are required to register alternative trade names by filing for a DBA if the business seeks to operate under a different name than the name used when it was formed. In the case of a sole proprietorship, any name different than the owner's legal name requires registration.

Though no action is required to legally create a sole proprietorship, you should follow four simple steps to start your business: Choose a business name. File an assumed name with your county clerk's office. Apply for licenses, permits, and zoning clearance. Obtain an employer identification number (EIN).

There's no specific cost to start a sole proprietorship in Illinois aside from the $5 processing fee for your business name's filing. You're also not necessarily required to file any legal document, so all you need to do is find an excellent sole proprietorship Illinois guide to complete the process correctly.

The fee for a five-year DBA registration or renewal is $150. The registration fee is prorated if your initial registration will expire in less than five years. For example, if you register a DBA in 2023, it will expire in 2027 and your registration fee will be $90.

Since sole proprietorships and partnerships are not separate legal entities from their owners, they need to file a DBA unless they want to do business under their own name.