How Much Does It Cost to Start a Business in Illinois?
Last updated: March 2026
Illinois Business Overview
LLC Filing Fee
$150
Sales Tax Rate
6.3%
Minimum Wage
$15/hr
Cost of Living Index
94.7
Workers Comp
Required
Annual Report Fee
$75
Starting a Business in Illinois
Illinois businesses register with the Secretary of State. Chicago requires its own business license and has additional permit requirements for many industries.
Illinois has a flat 4.95% individual income tax and a 9.5% corporate income tax (including personal property replacement tax). High property taxes are an additional burden.
Illinois offers a large market through Chicago but faces high business costs from workers comp, property taxes, and regulatory complexity. The state's fiscal challenges have driven some businesses to neighboring states.
For official formation documents, visit the Illinois Secretary of State.
Startup Costs for 100 Business Types in Illinois
The table below shows estimated startup costs for every major business type, adjusted for Illinois’s cost of living index of 94.7. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $6,650 | $19,000 | $43,700 |
| Airbnb / Vacation Rental | Real Estate | $10,450 | $28,500 | $85,500 |
| Ambulance Service | Transportation & Logistics | $76,000 | $190,000 | $475,000 |
| App Development Company | Tech & Online | $9,500 | $28,500 | $76,000 |
| Architecture Firm | Professional Services | $19,000 | $52,250 | $123,500 |
| Auto Detailing Business | Automotive | $4,750 | $28,500 | $95,000 |
| Auto Repair Shop | Automotive | $71,250 | $190,000 | $475,000 |
| Bakery | Food & Beverage | $19,000 | $90,250 | $285,000 |
| Bar & Nightclub | Food & Beverage | $95,000 | $332,500 | $807,500 |
| Barbershop | Beauty & Personal Care | $14,250 | $61,750 | $166,250 |
| Beauty Supply Store | Beauty & Personal Care | $28,500 | $95,000 | $285,000 |
| Bookstore | Retail | $23,750 | $95,000 | $285,000 |
| Brewery / Microbrewery | Food & Beverage | $95,000 | $380,000 | $950,000 |
| Cannabis Dispensary | Specialty & Regulated | $118,275 | $315,400 | $1,182,750 |
| Car Wash | Automotive | $118,275 | $516,800 | $1,476,300 |
| Carpentry & Woodworking Shop | Construction & Trades | $9,975 | $26,600 | $66,500 |
| Catering Business | Food & Beverage | $11,400 | $50,350 | $123,500 |
| Chiropractic Office | Health & Wellness | $38,000 | $114,000 | $285,000 |
| Cleaning Business | Home Services | $1,425 | $10,450 | $35,150 |
| Clothing Boutique | Retail | $28,500 | $95,000 | $285,000 |
| Coffee Shop | Food & Beverage | $23,750 | $114,000 | $332,500 |
| Concrete Business | Construction & Trades | $23,750 | $61,750 | $142,500 |
| Consulting Business | Professional Services | $1,900 | $8,550 | $24,700 |
| Convenience Store | Retail | $47,500 | $266,000 | $712,500 |
| Courier & Delivery Service | Transportation & Logistics | $7,600 | $20,900 | $52,250 |
| Cybersecurity Firm | Tech & Online | $19,000 | $52,250 | $142,500 |
| Dance Studio | Childcare & Education | $19,000 | $76,000 | $237,500 |
| Daycare Center | Childcare & Education | $57,000 | $171,000 | $475,000 |
| Demolition Company | Construction & Trades | $28,500 | $76,000 | $190,000 |
| Dental Practice | Health & Wellness | $237,500 | $475,000 | $950,000 |
| Digital Marketing Agency | Tech & Online | $3,800 | $11,400 | $30,400 |
| E-Commerce Store | Tech & Online | $4,750 | $14,250 | $47,500 |
| Electrical Business | Home Services | $14,250 | $52,250 | $152,000 |
| Esthetics & Skincare Business | Beauty & Personal Care | $7,600 | $38,000 | $114,000 |
| Excavation Company | Construction & Trades | $47,500 | $123,500 | $332,500 |
| Financial Planning Practice | Professional Services | $19,000 | $52,250 | $123,500 |
| Flower Shop | Retail | $19,000 | $71,250 | $190,000 |
| Food Delivery Service | Food & Beverage | $9,500 | $49,400 | $123,500 |
| Food Processing Business | Food & Beverage | $71,250 | $237,500 | $712,500 |
| Food Truck | Food & Beverage | $42,750 | $114,000 | $190,000 |
| Freight Brokerage | Transportation & Logistics | $15,200 | $34,200 | $76,000 |
| Furniture Store | Retail | $47,500 | $190,000 | $570,000 |
| General Contracting Business | Construction & Trades | $19,000 | $52,250 | $123,500 |
| Ghost Kitchen | Food & Beverage | $19,000 | $57,000 | $142,500 |
| Gift Shop | Retail | $19,000 | $66,500 | $190,000 |
| Gym & Fitness Center | Health & Wellness | $47,500 | $237,500 | $950,000 |
| Hair Salon | Beauty & Personal Care | $14,250 | $71,250 | $237,500 |
| Handyman Business | Home Services | $1,900 | $9,500 | $31,350 |
| Home Health Care Agency | Health & Wellness | $38,000 | $123,500 | $285,000 |
| HVAC Business | Home Services | $19,000 | $66,500 | $190,000 |
| Ice Cream Shop | Food & Beverage | $19,000 | $71,250 | $190,000 |
| Insurance Agency | Professional Services | $14,250 | $38,000 | $85,500 |
| IT Services Business | Tech & Online | $14,250 | $38,000 | $95,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $23,750 | $85,500 | $237,500 |
| Landscaping Business | Home Services | $9,500 | $38,000 | $114,000 |
| Laundromat | Real Estate | $95,000 | $237,500 | $570,000 |
| Law Firm | Professional Services | $11,400 | $32,300 | $76,950 |
| Limousine & Car Service | Transportation & Logistics | $38,000 | $85,500 | $209,000 |
| Liquor Store | Retail | $47,500 | $171,000 | $475,000 |
| Marketing Agency | Professional Services | $4,750 | $17,100 | $47,500 |
| Martial Arts Studio | Childcare & Education | $19,000 | $66,500 | $190,000 |
| Meal Prep Business | Food & Beverage | $19,000 | $61,750 | $190,000 |
| Med Spa | Health & Wellness | $95,000 | $332,500 | $950,000 |
| Medical Practice | Health & Wellness | $142,500 | $380,000 | $950,000 |
| Mental Health Practice | Health & Wellness | $14,250 | $47,500 | $142,500 |
| Moving Company | Home Services | $28,500 | $95,000 | $285,000 |
| Music School | Childcare & Education | $9,500 | $47,500 | $142,500 |
| Nail Salon | Beauty & Personal Care | $19,000 | $85,500 | $237,500 |
| Painting Business | Home Services | $4,750 | $23,750 | $76,000 |
| Personal Training Business | Health & Wellness | $4,750 | $23,750 | $95,000 |
| Pest Control Business | Home Services | $9,500 | $38,000 | $114,000 |
| Pet Store | Retail | $28,500 | $95,000 | $285,000 |
| Pharmacy | Health & Wellness | $142,500 | $380,000 | $950,000 |
| Physical Therapy Clinic | Health & Wellness | $57,000 | $171,000 | $427,500 |
| Pizza Shop | Food & Beverage | $47,500 | $166,250 | $380,000 |
| Plumbing Business | Home Services | $14,250 | $47,500 | $142,500 |
| Podcast Production Company | Tech & Online | $1,900 | $5,700 | $17,100 |
| Preschool | Childcare & Education | $47,500 | $142,500 | $380,000 |
| Property Management Company | Real Estate | $9,975 | $22,800 | $52,250 |
| Real Estate Agency | Professional Services | $9,500 | $26,600 | $66,500 |
| Real Estate Investing (Rental) | Real Estate | $23,750 | $71,250 | $237,500 |
| Restaurant | Food & Beverage | $166,250 | $356,250 | $712,500 |
| Roofing Company | Home Services | $14,250 | $57,000 | $171,000 |
| SaaS Company | Tech & Online | $19,000 | $57,000 | $190,000 |
| Spa & Massage Therapy | Health & Wellness | $9,500 | $66,500 | $237,500 |
| Staffing Agency | Professional Services | $19,000 | $52,250 | $142,500 |
| Storage Unit Facility | Real Estate | $190,000 | $570,000 | $1,900,000 |
| Tattoo Shop | Beauty & Personal Care | $19,000 | $56,050 | $190,000 |
| Tax Preparation Business | Professional Services | $3,325 | $9,500 | $25,650 |
| Thrift Store | Retail | $19,000 | $71,250 | $190,000 |
| Tire Shop | Automotive | $47,500 | $142,500 | $380,000 |
| Towing Company | Automotive | $47,500 | $142,500 | $380,000 |
| Trucking Company | Transportation & Logistics | $28,500 | $76,000 | $190,000 |
| Tutoring Business | Childcare & Education | $1,900 | $22,800 | $95,000 |
| Used Car Dealership | Automotive | $47,500 | $190,000 | $570,000 |
| Vape Shop | Retail | $23,750 | $71,250 | $190,000 |
| Web Development Agency | Tech & Online | $3,325 | $11,400 | $31,350 |
| Welding Business | Construction & Trades | $14,250 | $38,000 | $95,000 |
| Winery | Food & Beverage | $142,500 | $723,900 | $2,850,000 |
| Yoga Studio | Health & Wellness | $14,250 | $76,000 | $190,000 |
Most Popular Business Types in Illinois
Licenses & Permits in Illinois
General Business License
Illinois does not have a statewide general business license, but businesses must register with the Illinois Department of Revenue for sales tax collection, register their entity with the Illinois Secretary of State, and comply with various state and local requirements. Chicago has extensive business licensing requirements through the Department of Business Affairs and Consumer Protection, with over 100 different license types. Other cities and counties in Illinois also have their own business license requirements.
Industry-Specific Licenses
- Food Service Sanitation Manager Certification and Food Establishment Permit — Illinois Department of Public Health or Local Health DepartmentCost: $50-$500 • Renewal: Annual
- Roofing Contractor License — Illinois Department of Financial and Professional RegulationCost: $150-$600 • Renewal: Annual
- Cosmetology Salon License — Illinois Department of Financial and Professional RegulationCost: $50-$200 • Renewal: Biennial
- Real Estate Broker License — Illinois Department of Financial and Professional RegulationCost: $125-$400 • Renewal: Biennial
- Day Care Center License — Illinois Department of Children and Family ServicesCost: $50-$300 • Renewal: Annual
- Retail Liquor License — Illinois Liquor Control Commission and Local Liquor AuthorityCost: $500-$3,000 • Renewal: Annual
- Dispensing Organization License — Illinois Department of Financial and Professional RegulationCost: $5,000-$30,000 • Renewal: Annual
- Motor Carrier Registration — Illinois Commerce CommissionCost: $100-$500 • Renewal: Annual
Home-Based Business Rules
Illinois municipalities regulate home-based businesses through local zoning ordinances. Chicago allows home occupations in residential zones with restrictions on customer traffic, signage, and the proportion of the home used for business. Many Illinois suburban municipalities have more restrictive home occupation rules. The Illinois Cottage Food Law specifically authorizes home-based food businesses with direct consumer sales and no license required.
Illinois Business Resources
SBA District Office
Illinois SBA District Office — Chicago
Secretary of State
https://www.ilsos.gov/departments/business_servicesZoning Information
Chicago has complex commercial zoning codes including Business, Commercial, and Planned Development districts. Suburban municipalities have their own zoning systems.
Health Department Notes
Chicago-area food businesses need permits from the Chicago Department of Public Health or the Illinois Department of Public Health for state-licensed operations.
Workers Compensation
Required for all employers. Illinois workers comp premiums are among the highest in the nation due to litigation-friendly laws.