Business License in Illinois: Who Issues It, Cost & Steps
If you're trying to get a general business license in Illinois, the state is not who you file with. This is issued locally, and the rules change at the city line. Here's how to find the right counter, and what the process generally looks like once you do.
Illinois requires business registration with the Department of Revenue before you make any sales or hire employees.
Most businesses operating in Illinois must register with the Illinois Department of Revenue (IDOR). You can register online, by mail, or in person, and should do so before starting operations.
- You must register with IDOR if you conduct business in Illinois or with Illinois customers, including sole proprietors and organizations that withhold income tax.
“You must register with the Illinois Department of Revenue (IDOR) if you conduct business in Illinois or with Illinois customers. This includes sole proprietors ( i.e. , individual or husband/wife/civil union), exempt organizations, or government agencies, that withhold Illinois Income Tax for Illinois employees.”
https://tax.illinois.gov/businesses/registration.html - Online registration through MyTax Illinois is the fastest method, processing in approximately one to two business days.
“You can register electronically using MyTax Illinois , available at mytax.illinois.gov. On the MyTax Illinois homepage, click "Register a New Business (Form REG-1)." Note that processing time for a registration application submitted through MyTax Illinois is approximately one to two business days.”
https://tax.illinois.gov/businesses/registration.html - You must register before making any purchases, sales, or hiring an employee.
“Register with us, using one of the above methods, before you make any purchases, sales, or hire an employee.”
https://tax.illinois.gov/businesses/registration.html - IDOR no longer mails paper certificates for most tax types; you must print your Certificate of Registration electronically from MyTax Illinois.
“IDOR will no longer be printing and mailing certificates for certain tax types including: Retailers' Occupation Tax Act (35 ILCS 120/) Use Tax Act (35 ILCS 105/) Service Use Tax Act (35 ILCS 110/) Service Occupation Tax Act (35 ILCS 115/) Hotel Operators' Occupation Tax Act (35 ILCS 145/) Automobile Renting Occupation and Use Tax Act (35 ILCS 155) Rental Purchase Agreement Occupation and Use Tax Act (35 ILCS 180) Parking Excise Tax Act (35 ILCS 525/) Medical Cannabis Cultivation Privilege Tax (410 ILCS 130/) Dry-Cleaning Solvents Tax (415 ILCS 135/) Cannabis Cultivation Privilege Tax (410 ILCS 705/60) Cannabis Purchaser Excise Tax Act (410 ILCS 705/65) These certificates will be issued electronically.”
https://tax.illinois.gov/businesses/registration.html
Sources (each one opened and read on 2026-09-15)
- https://tax.illinois.gov/businesses/registration.html: https://tax.illinois.gov/businesses/registration.html
Who issues a Business License in Illinois
This is a local permit. It is issued by your city or county, not by the state of Illinois. The state office listed underneath handles a related filing — it does not issue this permit.
- Illinois — the state revenue or taxation department (handles state tax registration and permits)
https://tax.illinois.gov
Finding your local office
Start with the city your address sits in — the relevant department is usually called Planning, Building, Community Development, or Business Licensing. If your address is unincorporated, the county performs that role instead. Calling the main switchboard and asking who handles this is usually faster than searching.
Starting point for anything else in Illinois: the state business portal, https://www.ilsos.gov/departments/business_services/home.html. It is a starting point, not the issuer of this permit.
The general US process
This sequence is the shape the process takes across the US. It is not a list of Illinois requirements, and no step here should be read as one — the issuing office named above sets the actual requirements.
- Step 1: Work out which government actually licenses you. In most of the country this is the city; unincorporated addresses are usually licensed by the county; a few states also run a statewide business licence.
- Step 2: Check the zoning for your address before paying anything — a licence does not override zoning.
- Step 3: Apply through that office. Larger cities almost all have an online portal; smaller ones may still be paper.
- Step 4: Expect the fee to be flat, or scaled to gross receipts or headcount, depending on the jurisdiction.
- Step 5: Display the licence if the issuing office asks you to.
- Step 6: Put the renewal date in a calendar. Renewal notices are not guaranteed.
What varies: whether a licence is required at all, who issues it, how the fee is calculated, and whether the state has its own layer on top.
Documents usually asked for
A typical list, not an Illinois checklist.
- EIN or SSN
- Business name/DBA filing
- Physical address
- Description of business activities
Related permits in Illinois
Business License in states bordering Illinois
Rules stop at the state line — same permit, each state bordering Illinois:
See Business License in all 50 states & DC →
Frequently asked questions
Who issues a business license in Illinois?
Your city or county — not the state.
How much does a business license cost in Illinois?
We don't publish an Illinois figure we haven't verified. The typical US range is $25–$500. The office named above has the real number for your address.
How long does it take to get a business license in Illinois?
Typical US processing is 3–30 days, and expedited handling is often available for a fee. The issuing office publishes its own turnaround, and that is the number to trust.
What is Illinois-specific on this page: the issuing office, 4 Illinois facts, each quoted off the government page beside it. Everything else — the numbered process, the document list, the cost and timeline — is the general US pattern, not an Illinois rule, and is labelled that way above. Requirements, fees and deadlines are set by the issuing office; confirm with it before you file or pay.