Starting a service business in Illinois

Form your business in Illinois

File Articles of Organization with the Secretary of State's Department of Business Services. Online filing costs $150 for standard processing (about 10 business days) or $250 for 24-hour service according to the Secretary of State's LLC instructions in October 2026; a payment processor fee is added to card payments. An LLC able to set up a series costs $400. You need a registered agent with an Illinois street address, and the Secretary of State emails your confirmation once the filing is approved.

Ongoing state filings

Illinois LLCs file an annual report every year. The fee is $75 under 805 ILCS 180/50-10, plus a penalty if late. The Limited Liability Company Act (805 ILCS 180/50-1) says the report must reach the Secretary of State within the 60 days before the first day of your LLC's anniversary month, so an LLC formed in June files during April or May.

Using a business name (DBA)

There are two routes. An LLC files an application to adopt an assumed name with the Secretary of State; under 805 ILCS 180/50-10 the fee is prorated to the five-year cycle, from $150 in years ending in 0 or 5 down to $30 in years ending in 4 or 9 ($120 for a filing in 2026), and renewal is $150. A sole proprietor files a certificate with the county clerk under the Assumed Business Name Act, then must publish notice in a local newspaper once a week for three straight weeks, starting within 15 days, and file proof of publication with the clerk within 50 days. County clerks set their own filing fees.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

The state licenses a short list of home-service trades. For electrical, general contracting, handyman and other work, ask the building department in each city and county you plan to work in what it requires before you quote. Statewide, the Department of Financial and Professional Regulation (IDFPR) licenses roofing contractors, and a roofer must put the license number and name on every contract, bid and building permit application. The Department of Public Health licenses plumbers: anyone who plans, installs, alters, extends, repairs or maintains plumbing systems must be licensed after passing the state exam. Anyone applying pesticides for hire, including lawn treatments, needs a commercial applicator license from the Department of Agriculture; the department lists the three-year commercial applicator license at $300 for 2026.

• Illinois Department of Financial and Professional Regulation: Roofing contractor licenses (Division of Professional Regulation)
• Illinois Department of Public Health, Plumbing Program: Plumber and apprentice plumber licenses
• Illinois Department of Agriculture, Pesticides: Commercial pesticide applicator and operator licenses

Workers' compensation

The Illinois Workers' Compensation Commission says state law requires employers to provide workers' comp insurance for almost everyone who is hired, injured or whose employment is localized in Illinois. Sole proprietors, business partners, corporate officers and LLC members may exempt themselves, so a solo owner with no employees is not forced to cover themselves. The penalty for knowingly going without is steep: the commission says fines can reach $500 for every day of noncompliance, with a $10,000 minimum, and corporate officers can be held personally liable.

More on coverage: business insurance for contractors.

Sales tax on services

Illinois does not tax the service itself. The Department of Revenue's Publication 113 says the service component of a sale of service remains nontaxable; what is taxed is tangible personal property you transfer as part of the job, such as parts or materials left with the customer. Businesses that do this are called servicepersons, and those with a physical presence in Illinois must register with the department, collect Service Occupation Tax on that property, and file Form ST-1. The publication also explains the de minimis rules for servicepersons whose materials are a small share of receipts. Register through MyTax Illinois.

Recording business calls in Illinois

Illinois is all-party consent for private conversations. Under 720 ILCS 5/14-2, it is eavesdropping to surreptitiously record a private conversation you are part of without the consent of all other parties. Tell every caller at the start that the call is recorded, and have your AI receptionist or phone system say it too. Our guide to recording business calls has sample wording.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

Northern Illinois gets real winters, with lake-effect snow near Lake Michigan and steady plowing and salting work around Chicago and Rockford, while the southern tip has milder winters and a longer mowing season. Spring and summer bring severe thunderstorms and hail across the prairie, which is why the state's roofing rules focus on storm work. Hot, humid summers keep air conditioning and lawn crews busy from May through September.

Home repair contracts over $1,000

The Home Repair and Remodeling Act (815 ILCS 513/15) says that before starting home repair or remodeling work over $1,000, you must give the customer a written contract or work order stating the total cost, the parts and materials, any charge for an estimate, and your business name and address. Under 815 ILCS 513/20 you must also hand over the state pamphlet titled Home Repair: Know Your Consumer Rights before the contract is signed, and both you and the customer sign a Consumer Rights Acknowledgment Form.

Storm work rules for roofers

IDFPR's consumer brochure on roofing says a contractor offering home repair or remodeling must not advertise or promise to pay or rebate any part of an insurance deductible to win the job, and a licensed roofer may never lend out the license. For roofing work paid by a homeowner's insurance, Illinois adds contract rules, including the homeowner's right to cancel in certain cases when the insurer denies the claim.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Illinois questions