Tax Registration

The following is information about registering your business for different taxes.

You must register your business with the Illinois Department of Employment Security within 30 days of the date you start to do business in Illinois, if you hire employees to work for you in Illinois. The definition of employee includes corporate officers. It can also include employees of charitable organizations, governmental agencies and municipalities, agricultural businesses and households which hire employees in Illinois.

To register your business and to receive your Illinois Unemployment Account number, you may either:

• Electronically register by clicking on Illinois TaxNet , or https://taxnet.ides.state.il.us
• Complete and mail the UI-1 "Report to Determine Liability Under the Unemployment Insurance Act" to the address on the form, http://www.ides.state.il.us/forms/enabled/Ui1.pdf (PDF 271 KB)

For further information, call the Employer Hotline at (800) 247-4984.

Illinois Department of Revenue

You must register with the Illinois Department of Revenue if you conduct business in Illinois, or with Illinois customers. This includes sole proprietors (individual or husband/wife), exempt organizations, or government agencies withholding for Illinois employees.

It is recommended that you contact other federal and state agencies and your units of local government (county, municipal, mass transit districts, etc.) to learn if you must register your business with them.

Register

To register your business and receive your certificate of registration and Illinois Business Tax number ( i.e., your “tax” number or IBT no.), you must either:

• electronically register through the Illinois Business Gateway, or
• complete and mail Form REG-1, Illinois Business Registration Application (PDF 77 KB) , to the Department of Revenue at the address on the form.

Register with the Department of Revenue , using one of the above methods, before you make any sales or when you hire an employee. You must display your Certificate of Registration in a prominent location in the place of business to which it applies.

If your business is already registered and your information changes (e.g., address change, ownership change, additional tax responsibilities, new location), update your registration information by calling 217 785-3707.

You may register for the following taxes through the Illinois Business Gateway:

• Automobile Renting Occupation and Use Tax
• Business Income Tax
• Cigarette and Cigarette Use Taxes
• Electricity Distribution and Invested Capital Tax
• Electricity Excise Tax
• Gas and Gas Use Tax
• Hotel Operator’s Occupation Tax
• Liquor Warehouser Tax
• Motor Fuel Tax
• Qualified Solid Waste Energy Facility Payments
• Sales, Use, and Related Taxes
• Telecommunications Tax
• Tobacco Products Tax
• Withholding Tax

Note: Certain tax types may have additional registration or bonding requirements. If additional information is required for your particular registration, the Department of Revenue will contact you.

Additional Registration Requirements (if applicable)

You may need to complete additional registration forms if your business is engaged in any of the activities shown below:

• Coin-operated amusement devices (COADs) — Your business owns COADs that do not dispense merchandise.
• Tax-Prep Software — Your business’ participation is voluntary.
• Electronic Filing (Individual Income Tax) (PDF 75 KB) — Your business’ participation is voluntary.
• Electronic Filing (excise taxes) — Your business’ participation may be mandatory; you may also participate voluntarily.
• Electronic Funds Transfer (EFT) of your tax payments — Your business’ participation is either mandatory or voluntary.
• Interstate Motor Carrier — Your business operates commercial motor vehicles in or through Illinois.
• Liquor — Your business manufactures or is an importing distributor of liquor.

Additional Bonding Requirements (if applicable)

In addition to registering your business, Illinois laws require that certain businesses post a bond for the following excise or miscellaneous taxes:

• Cigarette and Cigarette Use Taxes
• Liquor Gallonage Tax
• Motor Fuel and Motor Fuel Use Taxes
• Tobacco Products Tax
• Underground Storage Tank Tax

If the type of business that you are conducting requires you to post a bond, you should contact the Illinois Department of Revenue’s Excise Taxes Division.

Separate Registration for Household Employers

If you are a household employer, you must withhold Illinois Income Tax from your employee’s compensation and register with the Department of Revenue as an Illinois withholding agent. You are an employer of a household employee if you

• employ a person who does household work in or around your home,
• control what work is done, and
• control how the work is done (e.g., provide the necessary equipment, supplies, or tools to do the job).

If the worker controls how the work is done, the worker is not your employee. This person usually provides his or her own tools and offers services to the general public as an independent business. If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee.

The Illinois Department of Revenue defines a household employee the same as the Internal Revenue Service defines a “domestic service employee.” See the Internal Revenue Code, Section 3510, for more information. Examples of a “household employee” include a babysitter, caretaker, cleaning person, driver, health aide, housekeeper, nanny, private nurse, or yard worker.