Cost of Starting A Business in Illinois
Brad Smith • February 4, 2020
The cost of starting a business in Illinois depends on many factors.
However, you should consider a few key areas to ensure that your business is successful.
Business Structure Filing Fees
First, you should decide what type of business
you’d like to start. Illinois entrepreneurs can structure their businesses in seven ways:
- Sole proprietorship
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Limited liability partnership
- C Corporation
- S Corporation
The Illinois Secretary of State’s Office links out to each business type and their state filing forms and fees.
For example, LLCs in Illinois
are required to register articles of organization. These articles cost $150 to file, with an extra $100 for expedited service.
Think about how your business will structured, what you need to file, and include those fees in your estimate.
Expenses
The Small Business Administration
is a great resource for starting your own business.
Of course, the SBA also provides helpful information about how to estimate the cost of starting a business.
Typical expenses, according to the SBA, may include:
- Market research
- Mileage costs for location research
- Advertising
- Training
- Wages
- Fees paid to lawyers, accountants, and the like
- Intellectual property, such as filing patents and trademarks
In addition to these expenses, business owners should be familiar with Illinois taxes. The state’s handbook on starting your business
calls out four primary tax types:
- Income tax
- Sales tax
- Property tax
- Withholding tax
- Tax liabilities for each business will vary.
Capital expenditures should be included, as well. These one-time costs may be put toward purchasing assets, such as inventory, property, or vehicles.
Finally, business owners should budget for the following expenses if they plan to have employees:
Unemployment insurance
Worker’s compensation insurance
Employee benefits
Child support
Assess Assets
Another step is making an assessment of your company’s assets.
Generally, assets
include anything that has monetary value, such as:
- Cash and equivalents
- Equipment, such as the expenditures listed above
- Real estate
- Intangible assets, such as goodwill or brand value
The SBA says you can use assets to fund your business until your business sustains itself.
Develop An Estimate
Finally, add up the costs here to help you determine the cost of starting your business in Illinois. These will help provide you with an estimate.
The publication Entrepreneur has a helpful startup calculator
that challenges you to think about each line item. Input your startup expenses and startup assets, and the calculator will return a value.
Of course, estimates are just that—an approximation of what your business will cost.
You will need to determine what’s best for your Illinois business to help set you up for success.
Interested in Working With Us?
If you need help with estate planning or any other legal concerns, we are here for you. Don't hesitate to contact our firm directly for assistance. Our dedicated team is ready to provide support and guidance to you and your loved ones during important life transitions.
Whether you're ready to schedule a strategy session to discuss your specific needs or if you're interested in exploring our wide range of complimentary guides and additional resources, we encourage you to get in touch with us.
With licensed attorneys and offices located in both Illinois and Missouri, we are well-equipped to serve clients in these regions. Reach out to us today and let us leverage our expertise and care to guide you through the legal process.
Helpful Guides
Begin your journey by taking advantage of our collection of complimentary guides.
Online Documents
Simple & Convenient, Cost Effective, Attorney Reviewed Documents.
Recent Posts
Whether due to a sudden illness, an unexpected hospitalization, or other urgent situations, it's important to know what essential documents should be in place and how an attorney can help ensure a smooth transition for your loved ones.
Whether due to a sudden illness, an unexpected hospitalization, or other urgent situations, it's important to know what essential documents should be in place and how an attorney can help ensure a smooth transition for your loved ones.
Click HERE To View March Newsletter
Understanding the difference between an heir and a beneficiary can help you navigate estate planning more effectively and ensure that your wishes are carried out properly.
Estate planning is about more than just dividing assets; it’s about making sure your wishes are honored when it comes to your health, finances, and legacy.
Beyond understanding the medical aspects, there are critical legal steps you should take to safeguard your rights, clarify your wishes, and prepare for any unexpected situations.
Estate planning is a sensitive and complex process that often involves difficult decisions. One of the most challenging choices parents may face is whether to leave their children unequal inheritances.
Submit Your Confidential Request
Click the button & fill out the form so we can better understand how we can help.