Sales Tax Permit in Illinois: Cost, Application Process, and More

One of the first things you should think about if you’re starting a business in Illinois is getting a sales tax permit. Any company that offers specific services or sells tangible goods in the state is legally required to have this authorization. We’ll address some of the most frequent inquiries about obtaining an Illinois sales tax permit in this article.

In Illinois, obtaining a sales tax permit is free. Yes, you read that right: there is no cost associated with obtaining a sales tax permit in Illinois. However, you must register with the Illinois Department of Revenue if you are obligated to gather and send sales tax to the state.

You must visit the website of the Illinois Department of Revenue and fill out an online registration form if you want to register for a sales tax permit in Illinois. Information regarding your company, such as its name, address, and line of business, must be provided. Your social security number (SSN) or federal employer identification number (FEIN) must also be provided. Does Illinois require a business license for online sales?

Online enterprises in Illinois are not specifically required to get a state-level business license. However, you might need to acquire certain licenses or permits at the municipal level depending on the kind of goods or services you sell. For instance, the local health department may require you to obtain a food service establishment permit if you sell food-related things.

In Illinois, creating an LLC costs $150. When you submit your articles of organization, you must pay this fee to the secretary of state for Illinois. A $75 annual report fee is also required in order to maintain the good status of your LLC. In Illinois, how is an LLC taxed?

In Illinois, LLCs are treated as pass-through businesses for tax purposes, which means that the business itself is exempt from paying income taxes. Instead, the LLC’s individual members receive the money and report it on their individual income tax returns. However, an annual franchise tax of $75 is imposed on LLCs in Illinois and is paid along with the annual report fee.

In conclusion, getting an Illinois sales tax permit is free, and the procedure can be finished online through the website of the Illinois Department of Revenue. While there isn’t a set state-level license requirement for internet businesses, depending on the goods or services you offer, you might need to get a few municipal licenses or permits. In Illinois, forming an LLC costs $150, and the state of Illinois taxes LLCs as pass-through entities.