Most Illinois businesses need a license or permit to operate. While the state of Illinois does not require a state-wide business license, the city or municipality where your business operates may require a license. License requirements depend on the type of business and the local rules. The licensing process varies by city or municipality, so it is a good idea to check with your town or village clerk. Learn more about your local government offices through the Illinois Secretary of State.  

Keep in mind that most communities require that home-based businesses be licensed. Regulations regarding hours of operation and visitors to the home may present problems for the business owner.

Your business may have to be inspected before your license is issued.

If your business works in an industry regulated by the federal government, your business may also need to apply for a federal license. Some common industries requiring a federal license include agriculture, alcoholic beverages, and aviation. Contact the relevant federal agency to learn more about the application process.

City of Chicago business licenses

The City of Chicago requires the following businesses to get a license:

• Accommodations,
• Animal care and services,
• Children services,
• Commercial and business services,
• Entertainment,
• Food,
• Home-based businesses,
• Home repair and construction services,
• Hospital and commercial care facilities,
• Liquor,
• Manufacturing,
• Motor vehicle services,
• Outdoor vending,
• Parking lot/parking garage,
• Pawnshop/secondhand dealer,
• Personal services,
• Public vehicles,
• Tobacco, and
• Valet operator.

The City of Chicago also provides a list of businesses that may be exempt.

Keep in mind that the city requires that home-based businesses be licensed. There are certain businesses that cannot be run out of a home. Some examples include animal services, barber shops, and motor vehicle services. 

Businesses that engage in general sales and retail must also obtain a license. Examples include clothing stores, flower shops, garden shops, and pop-up shops. If you have any questions about whether your business will need a license, call the City of Chicago’s licensing office at (312) 744-6249.

If your business does need a license, you can apply online or visit the Chicago Small Business Center office.