State and local rules
Licenses and permits in Illinois
Professional and trade licenses
IDFPR licenses many professions, including physicians, nurses, pharmacists, dentists, detectives, cosmetologists, barbers, engineers, accountants, architects, real estate brokers, massage therapists, and CPAs.
- Roofing contractors need an IDFPR state license.
- Plumbers are licensed by IDPH, not IDFPR. A sole-proprietor plumbing contractor must be a licensed plumber.
- Electricians and general contractors have no state license and are licensed locally.
- Handymen have no statewide license. Under the Home Repair and Remodeling Act (815 ILCS 513/25), home repair businesses must carry liability insurance of $100,000 per person, $300,000 per occurrence, and $50,000 for property damage.
City and home-occupation rules
| City or village | Requirements |
|---|---|
| Chicago | Business license required. Home-based businesses need a Home Occupation license: $250, 2-year term. Business must be secondary to residential use. |
| Naperville | No general business license. A Business Occupancy Permit applies to tenant spaces; home occupation rules are in the zoning code. |
| Aurora | General business registration required for all businesses, free. Home occupations allow one non-resident employee, no retail sales, no detached-building use, and no signs. |
| Wheaton | No city approval needed for qualifying home occupations meeting Zoning Ordinance Article 24 standards. |
| Downers Grove | Registration for businesses with a physical presence. Home occupations were exempted by a 2007 ordinance. |
| Elmhurst | Registration required, $25. |
| Joliet | Registration for businesses with a place of business; home-based businesses are exempt. |
| Schaumburg | Home-based business approval required; a license may also be required. |
| Evanston | Annual registration required for all businesses, including home-based businesses. |
For other towns, search “[your city] home occupation” or call the zoning department. Unincorporated areas follow county zoning.
Cottage food businesses
Under the Cottage Food Operation law (410 ILCS 625/4), expanded by the Home-to-Market Act from January 1, 2022, certain home-made foods can be sold directly to consumers at farmers’ markets, events, online, or by home pickup. Resale is not allowed.
Operators need a Food Protection Manager certificate and must register with the local health department. Food outside the cottage law generally needs a licensed commercial kitchen and a health permit.
Permits that can be easy to miss
- Sales tax registration for craft fairs.
- Local contractor registration in each town where you work.
- Sign permits.
- Fire inspections.
- Food handler certificates.
See tax registration and insurance for your business.
Not sure which structure fits? Try the Structure Finder, or request help. Call (331) 261-4788
General information, not legal or tax advice.