Turning your business dream into reality can be a challenge. Knowing the right steps to take, and having the proper resources, can help save time and money. The following is a guide for entrepreneurs looking to start a business in Chicago.

Step 1: Ideate
Think of a new product or service based on an unmet need. Take an existing product or service from one market and offer it in another where it isn’t available. Look into an up-and-coming franchise operation.
Identify industry gaps, pain points and unserved niches:
- Chicago Public Library – Small Business Resources
- The Five Cs of Opportunity Identification (Harvard Business Review)
Match the business opportunity with your skills, experience, and passions:
Step 2: Prepare
Take the time to find out if your idea is viable. Who will buy your product or service? What’s happening in your industry?
Research your market and current trends:
- 5 Official Sources of Free Data for Market Research (U.S. Small Business Administration)
- Market research and competitive analysis (U.S. Small Business Administration)
Take some free business classes, or enroll in entrepreneurial programs on starting a business:
- ChiBizHub Calendar
- City of Chicago, Department of Business Affairs & Consumer Protection (BACP), Business Education
Meet with professional business advisors for free advice and guidance:
Step 3: Plan
If you intend to obtain a loan for your business, apply for a small business grant, pitch your business idea to investors, or enlist the support of business partners, you need a business plan; then you need to act on it.
Create a blueprint for your business by putting together a sound business plan:
- U.S. Small Business Administration – Write your business plan
- ChiBizHub Resource Navigator
- City of Chicago, Department of Business Affairs & Consumer Protection (BACP), Business Plan Resources
Form your team, find a co-founder, get “free” help, outsource tasks (if applicable):
- What Makes Great Startup Teams, And How To Find It (Forbes)
- 5 Ways to Find the Right Business Partner (Inc.)
- 5 Things Small Businesses Should Outsource (Entrepreneur)
Search for potential commercial business locations (i.e. Office, Warehouse or Retail Space) if not home-based. Do not sign a lease until you have checked with a City of Chicago, Small Business Center (SBC), License Zoning Representative to ensure that you can obtain a business license to conduct your business activities at the address of your proposed business location:
- World Business Chicago – Site Selector
- ChiBizHub Resource Navigator
- City of Chicago, Neighborhood Business Development Centers (NBDC)
Obtain financing/capital to start your business (does not apply to self-funded entrepreneurs):
- NBDC Info Sheet – Access to Capital for Start-Ups (PDF)
- ChiBizHub Resource Navigator
- City of Chicago, Small Business Center, Financial Resources Home
- Illinois Department of Commerce and Economic Opportunity (DCEO) – Loans and Financing Options
- U.S. Small Business Administration – Funding Programs
Decide on a commercial business location (does not apply to home-based businesses). Sign a lease or purchase a commercial property, hire a licensed contractor to obtain the proper Building Permits for any buildout (if applicable):
- Ready to Sign a Commercial Lease? Here Are Five Things To Consider (Forbes)
- Questions to Ask Before Signing a Commercial Lease (SCORE)
- City of Chicago, Department of Buildings, Building Permits
Come up with a good business name; check to make sure it’s not already taken:
- 12 Tips For Naming Your Startup Business (Forbes)
- 7 Tips for Naming Your Business (Entrepreneur)
- Illinois Secretary of State, Corporate & Limited Liability Company (LLC) Name Search
- Illinois Secretary of State, LP/LLLP/LLP/RLLP Name Search
Create a marketing plan, register your business domain name and setup your website, as well as your business social media accounts:
Step 4: Register
Legitimize your business by registering your legal and assumed business name, business entity type, and by obtaining your federal and state tax identifications; City of Chicago tax registration occurs during your City of Chicago business license application. Please note: you may not conduct any business until you have received your City of Chicago business license certificate.
Select a business entity type which will provide you with the proper legal protections and tax benefits
- U.S. Small Business Administration – Choose a business structure
- Consult with an Illinois registered Corporate/Business Law Attorney; Illinois State Bar Association – Illinois Lawyer Finder
- Consult with a Certified Public Accountant (CPA); Illinois CPA Society – Find a CPA
- Chicago Public Library – Small Business Resources
Register your business entity with the appropriate federal, state and county government agencies
- City of Chicago, Small Business Center, County, State, and Federal Business Registration
- An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity; apply for an EIN online at the IRS – Employer ID Numbers
- Sole Proprietors and General Partnerships, operating under an assumed name, must register with the Cook County Clerk’s Office – Assumed Business Name Registration
- All other business entity types (i.e. Limited Partnership (LP), Limited Liability Partnership (LLP), Limited Liability Corporation (LLC), Corporation, or Not-for-Profit Corporation (NFP)), domestic and foreign, must register with the Illinois Secretary of State – Business Services
- If you conduct business in Illinois, or with Illinois customers, you must register with the Illinois Department of Revenue – Business Registration
Obtain any professional/industry-specific state license(s) or certification(s) (if applicable)
- Illinois Department of Financial and Professional Regulation – Get My License (State regulated professions only)
- Illinois Liquor Control Commission (ILCC) – Licensing (Liquor establishments only)
- City of Chicago, Department of Public Health, Food Service Sanitation Certificate (Food establishments only)
Apply for City of Chicago Business License(s)
Note: business licenses are not transferrable; every business location requires a separate business license; most business licenses may be renewed every two years
- ChiBizHub Chicago business license application information
- City of Chicago, Small Business Center (SBC), Info Sheet – 3 Simple Steps to Obtain a Business License; for additional assistance please call 312-74-GOBIZ (744-6249)
- Most businesses operating in Chicago require a City of Chicago business license; apply and find additional information at City of Chicago, Small Business Center (SBC), Business Licensing: What Do I Need?
- Some businesses licensed by the State of Illinois are exempt; find a sample list of occupations/professions which do not require a City of Chicago Business License at City of Chicago, Small Business Center (SBC), Business License Exemptions
- The Department of Buildings issues General Contractor, Electrician, Plumbing, & Carpenter licenses; find additional information at City of Chicago, Department of Buildings (DOB), Trade Licensing
Apply for City of Chicago Public Way Use Permit(s)
- Business owners who have any items (e.g. signs, canopies, awnings, benches, sidewalk cafes, etc.) that extend out (i.e. over, under, or on) to the public way from their business locations require Public Way Use Permits
- In addition to a public way use permit, all business identifiers such as signs, awnings, canopies, marquees and banners are required to have a Department of Buildings sign construction permit. Only a licensed sign contractor may apply to obtain a sign construction permit.
Read More: Register and License Your Business
Step 5: Launch
Before opening your door for business, actual for “brick-and-mortars” or virtual for “click-and-orders”, you will need to setup your business finances, record-keeping, insurance, as well as the logistics to operate your business.
Open a business bank account; bring your business registration documents and business license
- U.S. Small Business Administration, Business Guide, Open a business bank account
- How to Open a Business Bank Account for Your Startup (Inc.)
- Best Checking Accounts for Small Businesses (Investopedia.com)
Set up an accounting and record-keeping system
- Record Keeping for a Small Business (Small Business Administration)
- Tax and Record Keeping Tips for Your Small Business (SCORE)
- Recordkeeping (IRS)
Obtain business insurance
- U.S. Small Business Administration, Business Guide, Get business insurance
- ChiBizHub Resource Partner<hyperlink to internal Resource Navigator page>
Hire, and train, employees (if applicable)
- City of Chicago, Small Business Center (SBC), Hiring & Training Resources
- ChiBizHub Resource Partner
Activate your business website and social media accounts; send out a press release and begin building brand awareness by executing your marketing plan
- U.S. Small Business Administration, Business Guide, Marketing and Sales
- Small Business Marketing 101 (Forbes)
Procure suppliers and service providers
- 4 Tips for Researching and Finding Wholesale Suppliers (Small Business Administration)
- Using Professional Service Providers to Grow Your Business (Entrepreneur)
Create/obtain products/inventory for sales and/or equipment/tools for services
Run through logistics with your team (if applicable)
Contact your Alderman’s office and/or Chamber of Commerce for a ribbon cutting ceremony; send out invitations for grand opening (if applicable)