Cost of Starting A Business in Illinois
Brad Smith • Feb 04, 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
As we journey through life, one inevitable truth is the process of aging. In the United States, this reality brings about a myriad of legal considerations and challenges, prompting individuals and families to seek guidance in the realm of elder law. From estate planning to long-term care, understanding the intricacies of elder law can greatly ease the burden of navigating the complexities of aging. In this blog, we explore some frequently asked questions about elder law and delve into the landscape of aging in America.
As we journey through life, one inevitable truth is the process of aging. In the United States, this reality brings about a myriad of legal considerations and challenges, prompting individuals and families to seek guidance in the realm of elder law. From estate planning to long-term care, understanding the intricacies of elder law can greatly ease the burden of navigating the complexities of aging. In this blog, we explore some frequently asked questions about elder law and delve into the landscape of aging in America.
Many people overlook the importance of ongoing estate planning, assuming a will or trust is adequate. However, this passive approach can bring costly consequences for both finances and family in the future.
Are you feeling overwhelmed by the complexities of Medicaid in Illinois and Missouri? You're not alone. Many people find themselves in a maze of regulations, paperwork, and confusing terminology when trying to access this vital healthcare program. In this blog post, we'll break down some of the key aspects of Medicaid and discuss why seeking help is essential for ensuring you get the benefits you deserve.
When it comes to estate planning, delaying action can have far-reaching consequences that extend well beyond our lifetimes.
If you don't have a plan in place for your assets, the state will step in to decide how they are distributed. While some may trust the state's judgment, it's important to recognize that it doesn't understand your individual circumstances, and the process can be both time-consuming and expensive.
Click HERE To View April Newsletter
Submit Your Confidential Request
Click the button & fill out the form so we can better understand how we can help.