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But as a sole proprietor, you must pay income, Medicare and Social Security taxes directly to the IRS yourself. You are expected to make an estimated tax payment each quarter. You can do this online or you can mail a check and paper voucher. There are penalties for failing to make quarterly tax payments.
Form an Illinois Corporation: Name Your Corporation. Designate a Registered Agent. Submit Articles of Incorporation. Get an EIN. Write Corporate Bylaws. Hold an Organizational Meeting. Open a Corporate Bank Account. File State Reports & Taxes.
Though Illinois does not require a statewide business license, your business is required to obtain a Certificate of Registration or License, sometimes referred to as a seller's permit, if it intends to sell or lease taxable goods or services within the state.
There is usually no government filing or approval required to operate your business as a sole proprietor, if the business name is the same as the owner's full legal name. Certain businesses might require permits or other approvals.
In Illinois, most business are required to be registered and/or licensed by the IDOR. If you plan to hire employees, buy or sell products wholesale or retail, or manufacture goods, you must register with the IDOR. To obtain information contact: Illinois Department of Revenue.
A sole proprietorship is an unincorporated business with only one owner who pays personal income tax on profits earned. Sole proprietorships are easy to establish and dismantle due to a lack of government involvement, making them popular with small business owners and contractors.
How to Start a Business in Illinois Choose a Business Idea. ... Decide on a Legal Structure. ... Choose a Name. ... Create Your Business Entity. ... Apply for Licenses and Permits. ... Pick a Business Location and Check Zoning Regulations. ... Review Your Tax Registration and Reporting Requirements. ... Obtain Insurance.
When it comes to being a sole proprietor in the state of Illinois, there is no formal setup process. There are also no fees involved with forming or maintaining this business type. If you want to operate an Illinois sole proprietorship, all you need to do is start working.