Illinois, with the Windy City of Chicago, has a lot to offer a business. However, before you decide to open a business there you will need a name. Illinois, like all states, won’t let you pick just any name. There are rules stating you must have a distinctive name that no other business in the state uses. That means you will need to do a business name search.
We created a guide to help you do a name search and offer some tips on picking the right name and how to start a business in Illinois that will create the awe you are looking for with new customers.
Go to:
How to check business name availability in Illinois
You can find a name that is distinguishable and unique for your business by doing a business name search in Illinois. Here is how to do it:
1. Go to the Illinois Secretary of State page
On the page, you will see a search button. Click on that. It will take you to a search page.
2. Pick a search entity
You can search for businesses that are only corporations or only LLCs or both. For a name search, you should leave the search term at both.
3. Hit submit
This takes you to another search page. On this one, pick how you want to search for a name. You can search a complete name, keywords, or a partial word, which is the beginning of any word in a name. Enter a name or words.
4. Hit continue
The search results will come up on the next page. These will include any business with that name or that uses the keywords you entered. You may need to try this several times until you get a message that your search yielded no records. Then, you know that your name is unique.
5. Consider reserving a name
After running an Illinois business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Illinois allows business owners to reserve a name for 90 days for $25.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Illinois, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
6. Check domain name availability
We created a tool that makes it easy.
How to name your Illinois business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Illinois company?
As you research available business names in Illinois, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Illinois business
Ready to set up your business in IL? Here’s what you do:
1. File your Articles of Organization
Visit the Illinois Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Illinois, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Illinois,, the cost is $150.
4. Wait for approval
Illinois will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Illinois small business facts
Businesses should hit the ground running. Before you decide to start a business in Illinois, it’s best to know some facts from the U.S. Business Administration:
- Illinois has 1.1million small businesses.
- There are 248,689 small businesses that employ people.
- Of all the small businesses, 921,272 are sole operators that don’t employ people.
- There are 2.4 million workers employed by small businesses in the state.
- Unemployment rates were 6.6% in 2014, above the national average of 5.8%.
- Top industries in Illinois are professional, scientific and tech services, other services except public administration, health care and social services, construction and retail.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Illinois:
Why is it so important to check on business name availability?
Illinois will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
What are Articles of Organization?
Every business, including corporations, nonprofits, and LLCs, must fill out a form defining a basic outline of a business. The Articles of Organization lists the officers, registered agents, and other information to show the business is legitimate. It is also called an IL LLC 5.5 form in Illinois.
What are the most profitable businesses in Illinois?
Illinois has a number of highly profitable companies and seems to be a magnet for insurance companies. The top five most profitable companies in the state are:
1. Abbvie – a pharmaceutical company
2. Caterpillar – a construction and mining equipment manufacturer
3. McDonald’s – a fast-food restaurant
4. State Farm Insurance
5. Allstate Insurance
Illinois is also home to Walgreens Boots Alliance, Mondelez International, Abbott Laboratories, Deere & Co., and United Airlines Holdings
What Illinois industry offers the most small firm employment?
The number one industry in Illinois for small firms employing others is the healthcare and social services industry. Small firms in healthcare and social services make up 45.1 percent of industry employment. There are 347,374 small firms in the healthcare and social services sector in Illinois.
What are some challenges to starting a business in Illinois?
There are two primary challenges to starting a business in Illinois. The first is the state deficit which stands at $3 billion. Such a deficit means the state closed many programs and service contracts and that trickles downward to businesses hoping to get a state contract.
The second problem is high taxation. Its top corporate income tax rate is 9.5%, which is the 14th most expensive in the country. It also has a high sales tax rate of 6.25% and then there are local taxes in cities and towns. Tax Freedom Day, the day marking when taxpayers earn enough money to pay all the taxes due, is April 24. That is later than 44 other states.
What are some advantages to starting a business in Illinois?
The primary advantage is that Chicago serves as a hub to the rest of the country and the world. Transportation is key to operating a successful business if you have products and having a major city with an international airport is a plus. Illinois also has many ground transportation options so your products can easily reach your customers.
The state also has a skilled labor market that is plentiful and diverse. That is largely due to the City of Chicago and the universities in the state. There are 6.5 million skilled workers in the workforce so finding good employees isn’t a problem.
Is Illinois a business-friendly state?
Those surveyed in 2018 said no, primarily because of taxes. In fact, the state is judged by many to be the least business-friendly state in the country. However, it has a lot of small businesses that contribute to its economy.
More than 77% of Illinois’ businesses employ less than 50 employees making small businesses a driving force in the state’s economy. In fact, The Bureau of Labor Statistics states that these small businesses created the majority of new jobs in 2018, accounting for 61 percent of jobs’ growth.
Additionally, 91 percent of new jobs were at startups less than a year old.
How hard did the COVID-19 pandemic hit small businesses in Illinois?
The pandemic did a lot of damage to the revenue of businesses in Illinois in that all businesses spent less on their necessities which affected business-to-business services. Additionally, the personal services sector, especially in Chicago, suffered the most because of its dependence on in-person contact.
This includes businesses like hair and nail salons, spas, restaurants, and daycares. Such services have also had to implement strict COVID-19 restrictions, which has impacted their bottom line. Restaurants took a huge hit but appeared to weathered the storm better than other types of personal services by cutting expenses. A major issue was that most personal services companies have a small balance sheet and revenues couldn’t outpace expenses during the height of the pandemic.
CHK_ YOUR NAME RIGHT NOW
Use our engine to quickly check your content right now!
