First decide on a business structure Illinois as a Sole Proprietor, LLC/Corp, or Partnership.

Selling/Leasing or if wanting to buy or sell Illinois merchandise, food, equipment wholesale requires a Seller's Permit.

All IL Businesses Using a DBA doing business as name need a DBA Fictitious Business Name

Hiring IL Workers Requires a Federal EIN and a State Tax Number EIN

Also, there are local taxes

    

• Business District Tax
    

• Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax
    

• Chicago Home Rule Use Tax on titled and registered items
    

• County Motor Fuel Tax
    

• DuPage Water Commission Taxes
    

• Home Rule County Taxes
    

• Home Rule or Non-home Rule Municipal Taxes
    

• Mass Transit District Taxes (Metro-East Mass Transit (MED) Taxes and  Regional Transportation Authority (RTA) Taxes)
    

• Metro-East Park and Recreation District Taxes
    

• Metropolitan Pier and Exposition Authority (MPEA) Food and Beverage Tax
    

• Special County Retailers’ Occupation Tax for Public Safety, Public  Facilities, and Transportation
    

• County School Facility Tax
  
      

Tangible personal property sold at retail over the  internet  is taxed in the same  manner as any other retail sale. Generally, if the item of tangible personal  property is purchased from an

    

• Illinois retailer, the retailer is responsible for collecting and remitting  Illinois Sales Tax (get Seller's Permit) .
    

• out-of-state retailer who does not collect Illinois Sales Tax (get Seller's Permit) ,  the purchaser  owes use tax and is responsible for paying use tax directly to the  department .

Quarter-monthly payments — If a retailer or service-person’s average monthly  liability is $20,000 or more, quarter-monthly payments must be made. Payments  are due the 7th, 15th, 22nd, and last day of the month. Because the statutory  threshold for mandated electronic funds transfer (EFT) program participation is  $20,000 annual liability, most taxpayers will remit their quarter-monthly  payments by EFT. Taxpayers who mail their quarter-monthly remittances to the  department, Sales and Use Tax Quarter-monthly Payment.

Illinois Illinois' sales and use tax scheme includes four major divisions: Retailers' Occupation Tax, Use Tax, Service Occupation Tax and the Service Use Tax.

  Each of these taxes is administered by the Illinois Department of Revenue. The Retailers' Occupation Tax is imposed upon persons engaged in the business of selling tangible personal property to purchasers for use or consumption. It is measured by the gross receipts of the retailer. The base rate of 6.25% is broken down as follows: 5% State, 1% City, 0.25% County. Local governments may impose additional tax resulting in a combined rate that ranges from the State minimum of 6.25% to 9.00% as of May 2013.

  The Service Use Tax is imposed upon the privilege of using or consuming tangible personal property transferred as an incident to the provision of a service. An example would be a printer of business cards. The printer owes Service Occupation Tax on the value of the paper and ink transferred to the customer in the form of printed business cards. The serviceperson may satisfy this tax by paying Use Tax to his supplier of paper and ink or, alternatively, may charge Service Use Tax to the purchaser of the business cards and remit the amount collected as Service Occupation Tax on the serviceperson's tax return. The service itself, however, is not subject to tax.

  Chicago charges a 2.25% food tax on regular groceries and drug purchases, and has an additional 3% soft drink tax (totaling 13.25%). An additional 1% is charged for prepared food and beverage purchases in the Loop and nearby neighborhoods (the area roughly bordered by Diversey Parkway, Ashland Avenue, the Stevenson Expressway, and Lake Michigan). Illinois requires residents who make purchases online or when traveling out-of-state to report those purchases on their state income tax form and pay use tax. In 2014, Illinois passed legislation which required Sales Tax (get Seller's Permit) to be collected by "catalog, mail-order and similar retailers along with online sellers... if they have sales of $10,000 or more in the prior year." Although the law went into effect January 1, 2015, retailers were given an additional month to comply with the legislation.[96]