Illinois Small Business Hub · Pure Expertz™

Phase 1

🌱 Start Your Business in Illinois

Formation, registration, and the first things to get right

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Form Your Business Entity

Illinois Secretary of State handles all formations: LLC, Corporation, Partnership, Nonprofit.

LLC: $150 Corp: $150 Series LLC: $400 Expedited +$100

LLC names must include "Limited Liability Company," "LLC," or "L.L.C." Name reservations are $25 for 90 days.

Illinois Secretary of State — Business Services ↗ Business Entity Search & Name Check ↗ Illinois.gov Business Hub ↗

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Registered Agent Requirements

Every Illinois LLC and corporation must maintain a registered agent at all times.

P.O. Box NOT accepted Physical IL address required

The agent must be an Illinois resident (18+) OR a qualified business entity. You can serve as your own registered agent. Non-compliance can result in involuntary dissolution.

Change Registered Agent ↗

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Annual Reports

Due before the first day of your anniversary month of formation, filed annually.

LLC/Corp: $75/year Late 60 days: +$100 Late 1 year: +$200

Failure to file locks you out of filing ANY other documents (amendments, agent changes, etc.) until you're current.

Annual Report Instructions ↗

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Separate from Secretary of State — register with Illinois Department of Revenue for tax accounts: sales tax, withholding, etc. Do this before your first sale or hire.

Free to register 1–2 business days

IDOR Business Registration ↗ MyTax Illinois (file & pay) ↗ IDES — Unemployment Insurance ↗

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Chicago & Cook County Licensing

Operating in Chicago? You need a City of Chicago business license — even if you hold a state license. Apply through BACP (Business Affairs and Consumer Protection).

Required before opening

Chicago Small Business Center is your one-stop resource: 121 N. LaSalle St., 8th Floor, Room 800.

Chicago BACP — License Requirements ↗ Cook County Small Business Source ↗

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Illinois Tax Rates at a Glance

Individual flat: 4.95% C Corp total: 9.5% S Corp replacement: 1.5% IL Sales tax: 6.25% Chicago combined: 10.25%

Chicago-area businesses: Cook County adds 1.75%, City adds 1.25%, RTA adds 1.00% on top of state rate. Some ZIP codes reach 11%.

IDOR — Business Tax Center ↗ Illinois Tax Rate Q&A ↗

Just starting out? Come to Open Office Hours — it's free.

Tue/Wed/Thu 2–4 PM Central · Ask anything · No pitch

Join Free OOH →

Phase 2

📈 Grow & Stay Compliant

Employment law, taxes, workers' rights, and compliance requirements

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Minimum Wage — 2025/2026

Illinois: $15.00/hr Chicago (Jul 1, 2025): $16.60/hr Youth (<18): $13.00/hr

Chicago's tipped minimum wage will be fully eliminated by July 1, 2028 — tipped workers will receive full minimum wage. No statewide increase scheduled for 2026.

IDOL — Minimum Wage Law ↗

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Paid Leave for All Workers Act

Effective January 1, 2024 — applies to every Illinois employer regardless of size.

1 hr per 40 hrs worked Up to 40 hrs/year Use for ANY reason Penalty: $2,500/offense

Employees use leave after 90 days. Recordkeeping required for 3 years minimum. Employers with 51–100 employees must pay out up to 16 hours on separation starting July 1, 2025.

IDOL — PLAWA Official Page ↗ PLAWA FAQ ↗

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Pay Transparency (Effective Jan 1, 2025)

Applies to employers with 15+ employees. All job postings must include:

Pay scale / salary range Benefits description

Internal promotions must be posted to current employees no later than 14 days after external posting. First offense: $250. Repeat violations: up to $10,000.

IDOL — Equal Pay & Salary Transparency ↗

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Workers' Compensation — Mandatory

Workers' comp insurance is required for every Illinois employer with even one employee — including part-time and seasonal workers.

Penalty: up to $500/day Minimum fine: $10,000 Work-stop orders possible

Sole proprietors and LLC members may exempt themselves (not in construction/trucking).

Illinois Workers' Compensation Commission ↗

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Illinois Human Rights Act (IHRA)

Covers all employers. Annual sexual harassment training is mandatory — no size minimum.

New Jan 1, 2025: Reproductive health decisions New Jan 1, 2025: Family responsibilities

Free model training available from the Illinois AG. Update employee handbooks to reflect 2025 additions.

Illinois Dept of Human Rights (IDHR) ↗ IL Attorney General — Consumer Protection ↗

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Illinois Consumer Fraud Act

Every business selling in Illinois is subject to this law. It covers deception, misrepresentation, and unfair competition in all marketing and sales.

3-year statute of limitations Punitive damages possible Attorney fees awarded to winner

All online marketing claims, social media, promotional offers — covered. No pre-suit notice required from consumers.

815 ILCS 505 — Full Statute ↗

Phase 3

🚀 Accelerate — Grants, Loans & Incentives

Free money, tax credits, and the programs that fund Illinois growth

🏛️

Illinois DCEO — Small Business Hub

The Illinois Department of Commerce and Economic Opportunity is the primary state agency for business grants, loans, and incentive programs.

OE3 Grant: up to $245,000

OE3 Small Business Capital Grant: Equity-focused, businesses with <10 employees, underrepresented owners. Watch for new application cycles.

DCEO Small Business Assistance ↗ DCEO Grant Tracker (live database) ↗ OE3 Small Business Capital Grant ↗

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EDGE Tax Credit Program

Economic Development for a Growing Economy — income tax credits for job creation and capital investment.

Up to 10 years of credits Carry forward 5 years

"But for" requirement reinstated — must show the project would NOT occur in Illinois without the credit. Tier II (2025): $50M+ investment, extended 10–15 year credits.

EDGE Program — DCEO ↗ EDGE for Startups ↗ All Illinois Incentives & Tax Credits ↗

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Illinois SBDC Network — Free Consulting

Small Business Development Centers offer free and low-cost consulting, training, and resources across Illinois — funded by DCEO + SBA.

Free consulting Statewide network

Chicago-area key centers: Chicagoland Chamber of Commerce · University of Chicago Polsky Exchange · Illinois Hispanic Chamber of Commerce · NORBIC (Northwest Side)

Illinois SBDC Network ↗ Find a Center Near You ↗ Chicagoland Chamber SBDC ↗

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SBA Illinois District Office

Federal small business resource: SBA 7(a) loans, 504 loans, microloans, disaster assistance, and government contracting programs.

332 S. Michigan Ave, Suite 600

Phone: 312-353-4528 · Mon–Fri 8:00 AM–4:30 PM

SBA Illinois District Office ↗

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Cook County Grants

Catalyst Grant: Up to $100,000 for growth-stage Cook County businesses in construction, IT, finance, manufacturing, and professional services.

Watch for 2026 round opening

Chicago SBIF: Grants covering 30–90% of building improvements — up to $150,000 commercial, $250,000 industrial.

Cook County Catalyst Grant ↗ Cook County Small Business Source ↗

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Illinois Venture & Investment Funds

ILGIF: $1.5 Billion fund INVENT: $114M equity capital

ILGIF — $1.5B evergreen impact fund attracting tech-enabled businesses to Illinois. INVENT — SSBCI-funded direct equity program via DCEO. Illinois Ventures — U of I deep tech spinouts.

Illinois Growth & Innovation Fund (ILGIF) ↗ Illinois INVENT (DCEO) ↗ Illinois Ventures ↗

AI & Tech

🤖 Illinois AI & Technology Laws

Illinois leads the nation on AI regulation — know what applies to you

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AI Video Interview Act (AIVIA)

Illinois was the first state in the nation to regulate AI in hiring (2019). 2026 amendments now require explicit written consent — implied consent no longer sufficient.

Effective: Feb 2026

Must disclose: how AI works, what characteristics it evaluates, and the general criteria used. Candidates may request deletion of their video and AI data.

AIVIA — Illinois General Assembly ↗

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HB 3773 — AI Anti-Discrimination (Jan 1, 2026)

Illinois is only the second state to broadly regulate AI in employment decisions. Amends the Illinois Human Rights Act.

Effective: Jan 1, 2026 Covers generative AI

Employers cannot use AI that has the effect of discriminating in hiring, promotion, discipline, or termination. Must notify employees/applicants when AI is used.

Seyfarth Shaw — Employer Analysis ↗ Hinshaw & Culbertson — 2026 Guide ↗

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BIPA — Biometric Information Privacy Act

The most consequential data privacy law in the US. Covers fingerprints, retina/iris scans, voiceprints, facial geometry, hand scans.

$1,000–$5,000 per violation Class actions common

Most common trigger: fingerprint or facial recognition time clocks. Written notice + consent BEFORE collection. Publish retention policy. Destroy data when purpose is met or within 3 years.

740 ILCS 14 — BIPA Full Statute ↗

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Illinois Data Privacy — What's Coming

Illinois does not yet have a comprehensive consumer privacy law like California's CCPA — but two bills are active in 2025–2026:

SB 2875 — pending SB 3548 — pending

Small businesses below 100,000 consumers/year are largely exempt under current proposals. Current law: PIPA breach notification obligations apply to all businesses now.

SB 2875 — Illinois Consumer Data Privacy Bill ↗

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What This Means for Your Business — Pure Expertz™ Perspective

Illinois is now the leading state for AI governance law. If you use AI in any employment-related process — hiring tools, resume screeners, performance tracking, scheduling algorithms — you have compliance obligations right now.

The Block by Block AI Safety & Security Alliance provides a practical, open-source framework for navigating these requirements: AI Acceptable Use Policy, Workforce Registry, Human-in-the-Loop protocols, and Incident Response SOPs — exactly what HB 3773 and AIVIA require in practice.

The $8,000/month consultancy retainer exists to deliver this framework inside your organization. The AI Impact Academy is the education path to get there.

Block by Block Alliance Framework ↗ Start the Conversation ↗

Deadlines

📆 Illinois Compliance Calendar 2025–2026

Every date that matters — bookmark this

Date	Status	Requirement
Jan 1, 2025	ACTIVE	Illinois Pay Transparency (15+ employees) — all job postings must include pay scale and benefits description. Two new IHRA protected classes: reproductive health decisions and family responsibilities.
Jan 1, 2025	ACTIVE	Paid Leave for All Workers Act — full enforcement in effect for all employers. 1 hr per 40 hrs worked, up to 40 hrs/year, usable for any reason.
Jul 1, 2025	UPCOMING	Chicago minimum wage rises to $16.60/hour. Employers with 51–100 employees must begin paying out up to 16 hours of unused paid leave on separation.
Jan 1, 2026	UPCOMING	HB 3773 — AI Anti-Discrimination in Employment effective. Employers using AI in any hiring, promotion, or termination process must notify employees/applicants and ensure AI systems do not discriminate.
Feb 2026	UPCOMING	AIVIA 2026 amendments fully effective. Explicit written consent required before any AI-enabled video interview. Implied consent no longer sufficient.
~Jun 2026	PENDING	Chicago RTA sales tax increase (pending legislation). If passed, Chicago combined sales tax rate rises from 10.25% to 10.5% — potentially highest in the nation.
2025–2026	PENDING	Illinois Consumer Data Privacy Act (SB 2875 / SB 3548) — comprehensive privacy law in committee. Small businesses largely exempt under current drafts. Monitor for passage.
Annual	RECURRING	Illinois LLC/Corporation Annual Report — due before first day of anniversary month. $75 fee. Late 60 days: +$100 penalty.
Annual	RECURRING	Sexual Harassment Prevention Training — mandatory for all employees, every employer, every year. Free model training available from Illinois AG.
Jul 15 Annual	RECURRING	IDOL Prevailing Wage Rates updated — relevant for any business doing public works/government contracts in Illinois.

Illinois AI Laws Are Changing.
Are You Ready?

AIVIA is advancing. HB 3773 is moving. BIPA still has teeth. Every regulation on this page — especially the AI ones — is a business decision, not just a legal one. The AI 2026 Signature Forum is the quarterly 3-day event where Illinois business owners, consultants, and practitioners work through exactly this: how to build, protect, and grow in an AI-regulated world.

3 Days · 3 Hours Each Day VIP Opportunities Available 3 Signature Events in 2026 Virtual · Live · Interactive

Forum Structure

9 Hours

Per event — 3 days × 3 hours · Deep-dive sessions, live Q&A, implementation workshops

What We Cover

Illinois AI Regulation · BIPA Compliance · AI Implementation · Business Systems · Automation & ROI

Real compliance issues, real business decisions, real tools — not theory

⭐ VIP Access

VIP seats include direct access to Andy Babala, priority seating, extended strategy sessions, and exclusive networking with Chicagoland business leaders. Limited availability per event.

$27 / month

Forum entry fee · Cancel anytime · VIP upgrade available at checkout

Legal Disclaimer: This page is compiled by Pure Expertz™ LLC as an educational resource for Illinois small business owners. It is not legal advice and does not create an attorney-client relationship. Laws change — verify current requirements with the relevant Illinois agency or a licensed Illinois attorney before relying on any information here. Last reviewed: April 2026.

Sources: Illinois Secretary of State · Illinois Department of Revenue · Illinois Department of Labor · Illinois Workers' Compensation Commission · Illinois DCEO · Illinois General Assembly (ilga.gov) · SBA Illinois District Office · City of Chicago BACP · Cook County Small Business Source.

Start. Grow. Accelerate.

Illinois AI Laws Are Changing.
Are You Ready?

You Don't Have to Navigate This Alone

Start. Grow. Accelerate.

Illinois AI Laws Are Changing.Are You Ready?

You Don't Have to Navigate This Alone

Illinois AI Laws Are Changing.
Are You Ready?