Illinois Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Illinois?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a “general business license” in Illinois, what exactly is there?

Well, Illinois — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

• A restaurant in Chicago will need a City of Chicago business license from the Department of Business Affairs and Consumer Protection (BACP). They’ll also require food establishment permits from the Chicago Department of Public Health, and must register for sales tax with the Illinois Department of Revenue.
• A medical practice in Springfield will need professional licenses from the Illinois Department of Financial and Professional Regulation (IDFPR), a business license from the City of Springfield’s Office of the City Clerk, and a Certificate of Registration from the Illinois Department of Revenue.
• A retail store in Rockford will need to check with the City of Rockford as general business licenses are not required for all businesses, though they must register with the Illinois Department of Revenue for sales tax collection. If they have signage, they’ll need a sign permit from the Rockford Building Department.
• A daycare center in Aurora will need a child care license from the Illinois Department of Children and Family Services, local permits from Aurora’s business licensing department, and must meet requirements from the Illinois Department of Public Health. They’ll also need to register with the Illinois Department of Revenue if they have employees or collect sales tax.

All in all, it depends on what you do, and where you’re located. There is no “business license” that you will need to obtain just to operate no matter what, and while most businesses will need some form of business license to operate, this will not be the case for everyone. 

Do I Need an Illinois Business License?

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Illinois Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	City/County Business Licenses, Health Department Permits, Building Permits, Fire Department Permits, Zoning Permits	Varies by location.  Contact your local municipality to determine your business’s unique requirements.
State	Certificate of Registration (sales tax permit)	Most businesses conducting business in Illinois or with Illinois customers if selling taxable goods or services.  Apply online via MyTax Illinois for free.
	Professional Licenses	Required for regulated professions like healthcare providers, contractors, real estate agents, and others.  Apply through the Illinois Department of Financial and Professional Regulation (IDFPR) or relevant state licensing board.
	Industry-Specific State Licenses	Businesses in specific industries need additional licenses.  Examples include liquor licenses from the Illinois Liquor Control Commission and childcare licenses from DCFS.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in Illinois

The process of obtaining a business license in Illinois will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Illinois

This step will depend on the business license in question.

Illinois Local Business Licenses

Many Illinois cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• General Business License While Illinois doesn’t require a statewide general business license, many municipalities do require one. In Chicago, for example, every business operating in the city requires a City of Chicago business license from the Department of Business Affairs and Consumer Protection (BACP). 
• Health Department Permits Businesses involved in food preparation, food service, or personal care services typically need health permits. These ensure compliance with sanitation and public health standards. For example, restaurants, food trucks, beauty salons, and tattoo parlors require health permits from their local health department (e.g., if your business is based in Cook County, you would apply through the Cook County Department of Public Health).
• Zoning Permits Before opening a business, you must ensure your location is properly zoned for your intended use. Zoning permits verify that your business activity is allowed in your chosen location. This is especially important for home-based businesses, manufacturing facilities, or businesses in residential areas (e.g., if your business is based in Springfield, you would check zoning requirements with the City of Springfield Planning and Zoning Office).
• Sign Permits If your business will display any exterior signage, including wall signs, projecting signs, or awnings with text, you’ll need a sign permit. Size, placement, and illumination restrictions vary by municipality (e.g., if your business is based in Rockford, you would apply for sign permits through the Rockford Building Department).
• Building Permits If you’re constructing a new building, renovating an existing space, or making significant alterations to your business location, you’ll need building permits. These permits ensure all construction meets safety and zoning requirements. This includes interior renovations, additions, and changes to electrical or plumbing systems (e.g., if your business is based in Aurora, you would obtain building permits from the City of Aurora Building Department).
• Fire Department Permits Businesses that could pose fire risks, such as restaurants with commercial kitchens, assembly venues, or businesses storing flammable materials, need fire department permits and inspections. These ensure compliance with fire safety codes and may include requirements for sprinkler systems, fire extinguishers, and emergency exits (e.g., if your business is based in Peoria, you would work with the Peoria Fire Department).

To find your local county or city’s official contact information and licensing requirements, you can visit the Illinois Municipal League.

Illinois State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

Illinois Certificate of Registration

You can register for an Illinois Certificate of Registration or License online, by mail, or in person.

OPTION 1: Apply Online With MyTax Illinois

Apply Online

– OR –

OPTION 2: Apply by Mail or in Person

Download Form

Fee: None

Mailing Address:
Central Registration Division
Illinois Department of Revenue
P.O. Box 19030
Springfield, IL 62794-9030

Office Address: Department of Revenue Regional Offices

Tip: Your business does not need to pay sales taxes when purchasing goods for resale. You’ll need to have obtained a Certificate of Registration and present a Resale Certificate (Form CRT-61) when buying such items for this to apply. 

Illinois Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Illinois Department of Financial and Professional Regulation (IDFPR): The IDFPR regulates a variety of health care and occupational professionals including physicians, nurses, pharmacies, physical therapists, dentists, veterinarians, detectives, and cosmetologists. This is Illinois’s primary licensing agency for most regulated professions.
• Attorney Registration and Disciplinary Commission (ARDC): The ARDC operates under the authority of the Illinois Supreme Court and is responsible for attorney registration, investigation, prosecution, and remedial action. All practicing Illinois lawyers must register annually with the ARDC.
• Division of Real Estate (IDFPR): The Division of Real Estate regulates real estate brokers, managing brokers, leasing agents, and real estate education providers. This division operates under IDFPR and handles all real estate professional licensing.
• Illinois Department of Public Health (IDPH): IDPH licenses several professions including asbestos abatement contractors, irrigation contractors, plumbers, water well contractors, and emergency medical services personnel.
• Illinois State Board of Education (ISBE): Responsible for licensing teachers, school administrators, school counselors, and other education professionals working in Illinois public and private schools.
• Division of Professional Regulation (DPR): Oversees additional healthcare professionals, design professionals (architects and engineers), private detectives, security contractors, and many other licensed occupations.
• Illinois Department of Agriculture (IDOA): Licenses veterinarians, meat inspectors, and various agricultural professionals and businesses.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Illinois businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in Illinois:

• Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Illinois Liquor Control Commission (ILCC). There are 39 different license categories including airplanes, trains, liquor stores, non-beverage users, out-of-state distributors, special events, non-resident dealers, national and foreign licensing, and brand registration. 
• Motor Vehicle Dealer License: Required for businesses selling new or used vehicles. Regulated by the Illinois Secretary of State Vehicle Services Department. 
• Child Care License: Required for businesses caring for children. In Illinois, you need a license if you care for 4 kids and at least one kid is from a different family. Regulated by the Illinois Department of Children and Family Services (DCFS).
• Cannabis Dispensary License: Required for businesses selling medical or adult-use cannabis. Regulated by the IDFPR. 
• Gaming License: Required for businesses offering video gaming terminals, casinos, or other gambling activities. Regulated by the Illinois Gaming Board (IGB). This includes licenses for terminal operators, suppliers, and establishments hosting gaming machines.
• Food Processing License: Required for businesses manufacturing, processing, or packaging food products for wholesale distribution. Regulated by the IDPH for most food products and the IDOA for meat and poultry products.
• Private Security Contractor License: Required for businesses providing security guard services, private investigation, or alarm system installation. Regulated by the IDFPR.

Illinois Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Illinois Environmental Protection Agency (EPA).

Examples of industries and activities requiring environmental permits include:

• Air Quality Permits: If your business impacts air quality, it is possible that you are required to have an Air Pollution Control Permit. This includes businesses with boilers, generators, paint booths, or manufacturing equipment.
• Underground Storage Tank Registration: Required for gas stations, marinas, and facilities storing petroleum products or hazardous substances in tanks with at least 10% of their volume underground. Regulated by the Office of the Illinois State Fire Marshal.
• Water Discharge Permits: The program requires permits for the discharge of treated municipal effluent, treated industrial effluent, coal and non-coal mining discharges, Concentrated Animal Feeding Operations (CAFO’s), public water supply treatment plant discharges, pesticide discharges, and stormwater. Required for businesses discharging wastewater or stormwater to Illinois waters.
• Hazardous Waste Generator ID: Required for businesses that generate, store, transport, treat, or dispose of hazardous waste. Different requirements apply based on generator category (very small quantity, small quantity, or large quantity generator).
• Land Application Permits: Required for businesses applying biosolids, industrial sludges, or treated wastewater to land. Includes detailed monitoring and reporting requirements.
• Wetlands Permits: Construction projects in Illinois waterways, floodplains and wetlands often require both State and Federal authorization. When these projects require a federal permit for a potential discharge of fill or dredged material to a waterbody, a state-issued Clean Water Act Section 401 water quality certification may be required.
• Special Waste Hauling Permits: Required for businesses transporting non-hazardous industrial process waste, pollution control waste, or potentially infectious medical waste.
• Beneficial Use Permits: Required if you are going to beneficially use a material that would otherwise be a waste, such as using industrial byproducts for construction materials.
• General Operating Permits: The Illinois EPA is providing general operating permits for categories of true minor sources, including portable material crushing plants, soil/groundwater remediation systems, and concrete batch plants. These streamlined permits save time and money for qualifying small businesses.

Tip: The Illinois Department of Commerce and Economic Opportunity’s Small Business Environmental Assistance Program (SBEAP) provides free confidential information and services to help small businesses understand and comply with environmental regulations. 

Federal Business Licenses for Illinois LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration.
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Illinois Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years.

Certificates of Registration are renewed automatically in Illinois. Having said that, you will need to update your Certificate if you change your address, ownership status, or location. 

Renewal is also required for practically all professional licenses and many local permits, including:

• Health department permits for food establishments (annually in most municipalities)
• Professional licenses like real estate, medical, cosmetology, and contractors (typically every 1-2 years with continuing education requirements)
• Liquor licenses (renewed annually through both state and local authorities)
• Fire department certificates (typically annually)
• Motor vehicle dealer licenses expire December 31st each year with renewal notices sent in September
• Building permits for ongoing construction projects
• Sign permits and public way use permits (varies by municipality)

Having said that, renewal requirements will ultimately depend on both your location and the specific license in question. As a result, we recommend always checking with your issuing agency for the specific renewal timelines and requirements that will apply to you.

Illinois Business License FAQs

Quick Links

• MyTax Illinois
• Illinois Department of Financial and Professional Regulation
• Illinois Registration, Licenses, and Permits
• Illinois City and County Government Directory