Start Your Business: The Basics.

That row above is the whole backbone. Everything below walks each step. The two ID numbers you'll get — your EIN (federal) and your Illinois Account ID (state) — are the keys that every other form, license, and bank asks for. Once you have those two, the rest is paperwork.

Pick your structure

This decides your liability, your taxes, and what paperwork follows. The big one people get wrong: "S-corp" is not a business type — it's a tax election you add on top of an LLC or corporation.

Register with the state

This is the step that legally creates the business. In Illinois it's the Secretary of State, Department of Business Services — and the form's name depends on what you're forming:

• LLC → file Articles of Organization (Form LLC-5.5)
• Corporation (C-corp / S-corp / Inc.) → file Articles of Incorporation

Same office, same step, different form. Before you file, do a free name search on the state's Business Entity Search to make sure your name is available, and name a registered agent — a person or service with a physical Illinois street address (you can be your own for free).

Online filing approves in about 5–10 business days. Once approved you get a stamped copy + your file number — keep copies; the bank will want them.

Get your EIN

Your EIN (Employer Identification Number) is the business's federal tax ID — like a Social Security number for the company. It comes from the IRS, not the Secretary of State, it's free, and it takes about 10 minutes online.

You'll need the EIN to open a business bank account, hire employees, file taxes, and register for state taxes in the next step. Anyone charging you for an EIN is charging you for something the IRS gives away.

State taxes & the license maze

Forming the entity (Step 2) does not license you to sell. That's a separate layer — and it's where the words "reseller," "wholesale," and "peddler's" all start blurring together. Here's the clean version.

First: register for state tax

If you'll sell goods (or certain services), register with the Illinois Department of Revenue (IDOR) through MyTax Illinois using Form REG-1. It's free. That gives you a Certificate of Registration and your Illinois Account ID — your state sales-tax number. This is what lets you legally collect and remit sales tax (you'll file Form ST-1).

Then: the licenses, and how they connect

• Reseller / resale certificate (Form CRT-61). This is the one people mean by "reseller's license," "resale license," or "tax-exempt certificate." It lets you buy inventory from suppliers without paying sales tax, because you'll collect the tax when you resell. You can only issue it after you have your Illinois Account ID from the step above — the certificate puts that number on it. You give CRT-61 to your supplier; you don't mail it to the state.
• Wholesale "license." Usually this just is your resale certificate — it's what a wholesaler or distributor asks for (plus your EIN) before they'll sell to you at wholesale, tax-free. A few regulated goods (liquor, tobacco, etc.) need a separate state distributor license on top.
• Peddler's / vendor / itinerant-merchant license. This one is local, not state — issued by your city, village, or county for selling door-to-door, on the street, or at markets and events. Rules and fees vary by town, so check your municipality.
• General business license. Illinois has no statewide general business license, but many municipalities (Chicago and others) require a local one. Check your city/village clerk.
• Industry-specific licenses. Food, childcare, salons, contractors, professional trades — these have their own state or local boards on top of everything above.

Open the business bank account

Keep business money and personal money completely separate — it protects your liability shield and makes taxes sane. Bring these to the bank:

• Your stamped Articles (Organization or Incorporation) from the state
• Your EIN letter from the IRS
• Your operating agreement (LLC) or bylaws (corp)
• A Certificate of Good Standing if the bank asks ($25 from the SOS)

Build business credit

Your business can build its own credit profile separate from your personal score — which is how you eventually fund trucks, inventory, and equipment without putting your house on the line. There's a whole walkthrough for this already.

Get found on Google

A free Google Business Profile is how local customers actually find you — maps, reviews, hours, the works. It costs nothing and most people skip it.

Taxes when you work for yourself

As a sole proprietor, single-member LLC, or 1099 contractor, nobody withholds taxes for you — so a couple of habits keep April from hurting:

• Set aside ~25–30% of what you bring in for taxes, in a separate account.
• Pay quarterly estimated taxes (Apr 15, Jun 15, Sep 15, Jan 15) so you avoid one big bill plus a penalty.
• Deductions lower your tax. You're taxed on profit, not gross — track every legitimate business expense (supplies, mileage, phone, fees). A business bank account makes it easy.
• Self-employment tax is 15.3% of net profit, on top of income tax. A tax pro pays for themselves once you're making money.

That's the whole spine

Secretary of State → IRS → Department of Revenue → Licenses → Bank. Form the entity, get your two ID numbers, register for the taxes and licenses your work needs, and open the account. Do those in order and you're legally open for business.