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.
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
- 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
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.