Illinois Business Startup Guides

Starting a Business in Chicago, Illinois

Thinking about starting a business in Chicago, Illinois? This step-by-step guide walks you through the major decisions you should consider before opening a new business in Chicago.

Chicago, Illinois Demographic Information

Chicago has an active business community that includes small businesses, mid-sized businesses and large businesses.

To give you a better feel for Chicago demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Chicago.

Business Size
# of
Businesses
1-4 Employees
99447
5-9 Employees
30212
10-19 Employees
20825
20-49 Employees
15896
50-99 Employees
6162
100-249 Employees
3663
250-499 Employees
1068
500-999 Employees
477
1000+ Employees
270
All Chicago Businesses
178020

As a new Chicago entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Chicago for each business category. By looking at this chart, you can get a general sense for how much competition there is in the business niche that you are pursuing.

Business Type
# of
Businesses
Abrasive Product Manufacturing
8
Adhesive Manufacturing
3
Advertising Agencies
248
Air Traffic Control
1
Aluminum Die-Casting Foundries
5
Aluminum Extruded Product Manufacturing
1
Aluminum Foundries (except Die-Casting)
6
Ambulance Services
10
Amusement Arcades
10
Animal (except Poultry) Slaughtering
12
Apprenticeship Training
8
Architectural Services
421
Armored Car Services
5
Art Dealers
93
Audio and Video Equipment Manufacturing
4
Automatic Vending Machine Manufacturing
2
Automobile Driving Schools
13
Automotive Exhaust System Repair
46
Automotive Glass Replacement Shops
35
Automotive Parts and Accessories Stores
171
Automotive Transmission Repair
40
Baked Goods Stores
38
Ball and Roller Bearing Manufacturing
1
Barber Shops
34
Bed-and-Breakfast Inns
9
Beer and Ale Merchant Wholesalers
13
Beer, Wine, and Liquor Stores
294
Blind and Shade Manufacturing
7
Blood and Organ Banks
7
Boat Building
1
Boat Dealers
12
Book Stores
104
Books Printing
4
Bottled Water Manufacturing
1
Bowling Centers
13
Breakfast Cereal Manufacturing
1
Breweries
1
Broadwoven Fabric Finishing Mills
4
Broom, Brush, and Mop Manufacturing
4
Building Inspection Services
19
Burial Casket Manufacturing
2
Business and Secretarial Schools
1
Business Associations
215
Business to Business Electronic Markets
10
Cable and Other Program Distribution
18
Camera and Photographic Supplies Stores
16
Canvas and Related Product Mills
12
Car Washes
88
Carpet and Rug Mills
1
Carpet and Upholstery Cleaning Services
29
Caterers
107
Cement Manufacturing
1
Charter Bus Industry
13
Cheese Manufacturing
1
Child and Youth Services
167
Child Day Care Services
605
Children's and Infants' Clothing Stores
45
Cigarette Manufacturing
3
Civic and Social Organizations
198
Clay Refractory Manufacturing
1
Clothing Accessories Stores
88
Coffee and Tea Manufacturing
6
Coin-Operated Laundries and Drycleaners
200
Collection Agencies
32
Commercial Bakeries
36
Commercial Flexographic Printing
8
Commercial Lithographic Printing
117
Commercial Photography
121
Commercial Screen Printing
30
Commodity Contracts Brokerage
179
Commodity Contracts Dealing
190
Community Food Services
28
Computer and Software Stores
67
Computer Storage Device Manufacturing
1
Computer Systems Design Services
372
Computer Training
30
Concrete Block and Brick Manufacturing
2
Confectionery and Nut Stores
63
Confectionery Merchant Wholesalers
34
Construction Machinery Manufacturing
4
Continuing Care Retirement Communities
15
Convenience Stores
269
Convention and Trade Show Organizers
85
Convention and Visitors Bureaus
7
Cookie and Cracker Manufacturing
7
Copper Foundries (except Die-Casting)
2
Copper Rolling, Drawing, and Extruding
3
Couriers
60
Court Reporting and Stenotype Services
63
Creamery Butter Manufacturing
1
Credit Bureaus
13
Credit Card Issuing
8
Credit Unions
79
Crown and Closure Manufacturing
2
Custom Compounding of Purchased Resins
1
Custom Computer Programming Services
437
Custom Roll Forming
5
Dance Companies
13
Deep Sea Freight Transportation
4
Dental Laboratories
46
Diagnostic Imaging Centers
31
Digital Printing
13
Dimension Stone Mining and Quarrying
2
Direct Life Insurance Carriers
80
Direct Mail Advertising
45
Direct Title Insurance Carriers
37
Directory and Mailing List Publishers
17
Discount Department Stores
22
Distilleries
1
Document Preparation Services
40
Dog and Cat Food Manufacturing
2
Doll and Stuffed Toy Manufacturing
2
Drafting Services
10
Dried and Dehydrated Food Manufacturing
2
Drilling Oil and Gas Wells
1
Dry Pasta Manufacturing
4
Drywall and Insulation Contractors
45
Educational Support Services
68
Electric Power Distribution
10
Electrical Contractors
290
Electronic Auctions
1
Electronic Capacitor Manufacturing
2
Electronic Connector Manufacturing
2
Electronic Shopping
44
Elementary and Secondary Schools
263
Emergency and Other Relief Services
10
Employment Placement Agencies
177
Engineering Services
272
Envelope Manufacturing
6
Exam Preparation and Tutoring
55
Exterminating and Pest Control Services
26
Fabric Coating Mills
1
Facilities Support Services
32
Family Clothing Stores
202
Family Planning Centers
10
Farm Management Services
1
Fats and Oils Refining and Blending
1
Fine Arts Schools
75
Finish Carpentry Contractors
173
Fish and Seafood Markets
12
Fish and Seafood Merchant Wholesalers
17
Fitness and Recreational Sports Centers
199
Flat Glass Manufacturing
1
Floor Covering Stores
80
Flooring Contractors
99
Florists
127
Flour Milling
2
Fluid Milk Manufacturing
3
Folding Paperboard Box Manufacturing
13
Food (Health) Supplement Stores
80
Food Service Contractors
267
Footwear and Leather Goods Repair
11
Footwear Merchant Wholesalers
13
Formal Wear and Costume Rental
19
Fossil Fuel Electric Power Generation
4
Framing Contractors
50
Freight Transportation Arrangement
122
Frozen Specialty Food Manufacturing
12
Fruit and Vegetable Canning
6
Fruit and Vegetable Markets
38
Full-Service Restaurants
1,771
Funeral Homes and Funeral Services
110
Fur and Leather Apparel Manufacturing
1
Furniture Merchant Wholesalers
98
General Automotive Repair
535
General Freight Trucking, Local
284
General Medical and Surgical Hospitals
37
General Rental Centers
11
General Warehousing and Storage
60
Gift, Novelty, and Souvenir Stores
196
Glass and Glazing Contractors
35
Gold Ore Mining
1
Golf Courses and Country Clubs
14
Grantmaking Foundations
128
Graphic Design Services
413
Greeting Card Publishers
4
Gypsum Product Manufacturing
4
Hand and Edge Tool Manufacturing
15
Hardware Merchant Wholesalers
61
Hardware Stores
113
Hat, Cap, and Millinery Manufacturing
1
Hazardous Waste Collection
1
Hazardous Waste Treatment and Disposal
3
Heating Oil Dealers
4
Historical Sites
2
Hobby, Toy, and Game Stores
50
Home Centers
26
Home Furnishing Merchant Wholesalers
88
Home Health Care Services
120
Home Health Equipment Rental
5
Homes for the Elderly
49
Household Appliance Stores
29
Hydroelectric Power Generation
3
Industrial Building Construction
14
Industrial Design Services
25
Industrial Launderers
37
Industrial Mold Manufacturing
11
Industrial Pattern Manufacturing
3
Industrial Valve Manufacturing
3
Insurance Agencies and Brokerages
846
Interior Design Services
219
International Trade Financing
16
Internet Publishing and Broadcasting
38
Internet Service Providers
47
Interurban and Rural Bus Transportation
4
Investigation Services
44
Iron and Steel Forging
7
Iron and Steel Mills
7
Iron Foundries
5
Irradiation Apparatus Manufacturing
2
Janitorial Services
313
Jewelry (except Costume) Manufacturing
25
Jewelry Stores
279
Kidney Dialysis Centers
29
Land Subdivision
79
Landscape Architectural Services
54
Landscaping Services
188
Language Schools
15
Lead Pencil and Art Good Manufacturing
2
Leather and Hide Tanning and Finishing
4
Libraries and Archives
13
Lime Manufacturing
1
Limited-Service Restaurants
1,957
Limousine Service
59
Linen Supply
12
Local Messengers and Local Delivery
36
Locksmiths
23
Luggage Manufacturing
5
Machine Shops
81
Mail-Order Houses
51
Malt Manufacturing
1
Manifold Business Forms Printing
5
Manufactured (Mobile) Home Dealers
2
Marinas
22
Marketing Consulting Services
377
Marking Device Manufacturing
6
Masonry Contractors
157
Materials Recovery Facilities
8
Mattress Manufacturing
9
Meat Markets
50
Meat Processed from Carcasses
41
Media Representatives
60
Medical Laboratories
41
Medicinal and Botanical Manufacturing
3
Men's and Boys' Neckwear Manufacturing
1
Men's Clothing Stores
118
Metal Can Manufacturing
4
Metal Heat Treating
5
Metal Stamping
34
Metal Tank (Heavy Gauge) Manufacturing
3
Metal Window and Door Manufacturing
13
Mineral Wool Manufacturing
3
Miscellaneous Intermediation
103
Mixed Mode Transit Systems
1
Mobile Food Services
10
Mortgage and Nonmortgage Loan Brokers
256
Motion Picture and Video Distribution
6
Motion Picture and Video Production
170
Motor and Generator Manufacturing
3
Motor Vehicle Body Manufacturing
1
Motor Vehicle Metal Stamping
8
Motor Vehicle Towing
36
Museums
31
Music Publishers
6
Musical Groups and Artists
62
Musical Instrument and Supplies Stores
24
Musical Instrument Manufacturing
5
Nail Salons
54
Narrow Fabric Mills
1
Navigational Services to Shipping
3
New Car Dealers
84
New Housing Operative Builders
60
News Dealers and Newsstands
43
News Syndicates
10
Newspaper Publishers
54
Nonferrous Forging
2
Nonwoven Fabric Mills
1
Nursing Care Facilities
95
Office Administrative Services
245
Office Equipment Merchant Wholesalers
97
Office Supplies and Stationery Stores
67
Offices of Bank Holding Companies
27
Offices of Certified Public Accountants
332
Offices of Dentists
1,017
Offices of Lawyers
3,031
Offices of Optometrists
111
Offices of Other Holding Companies
77
Offices of Podiatrists
99
Offices of Real Estate Appraisers
110
One-Hour Photofinishing
8
Ophthalmic Goods Manufacturing
7
Ophthalmic Goods Merchant Wholesalers
4
Optical Goods Stores
81
Outdoor Power Equipment Stores
7
Outerwear Knitting Mills
3
Packaging and Labeling Services
17
Packaging Machinery Manufacturing
3
Paging
7
Paint and Coating Manufacturing
23
Paint and Wallpaper Stores
29
Painting and Wall Covering Contractors
148
Paper (except Newsprint) Mills
1
Paperboard Mills
1
Parking Lots and Garages
472
Passenger Car Rental
64
Payroll Services
43
Pen and Mechanical Pencil Manufacturing
1
Periodical Publishers
130
Perishable Prepared Food Manufacturing
9
Pet and Pet Supplies Stores
45
Pet Care (except Veterinary) Services
59
Petroleum Refineries
3
Pharmacies and Drug Stores
379
Photography Studios, Portrait
107
Pipeline Transportation of Natural Gas
2
Plastics Bag Manufacturing
4
Plastics Bottle Manufacturing
3
Plastics Plumbing Fixture Manufacturing
1
Political Organizations
42
Polystyrene Foam Product Manufacturing
3
Port and Harbor Operations
2
Portfolio Management
260
Poultry Processing
5
Powder Metallurgy Part Manufacturing
1
Precision Turned Product Manufacturing
23
Primary Smelting and Refining of Copper
1
Printing Ink Manufacturing
8
Private Mail Centers
29
Professional Employer Organizations
34
Professional Organizations
132
Public Relations Agencies
158
Quick Printing
66
Radio Networks
14
Radio Stations
74
Railroad Rolling Stock Manufacturing
3
Ready-Mix Concrete Manufacturing
11
Real Estate Credit
160
Real Estate Investment Trusts
21
Record Production
14
Recreational Vehicle Dealers
1
Refrigerated Warehousing and Storage
8
Reinsurance Carriers
23
Remediation Services
17
Repossession Services
4
Residential Property Managers
451
Residential Remodelers
481
Reupholstery and Furniture Repair
44
Rice Milling
1
Rolled Steel Shape Manufacturing
3
Roofing Contractors
94
Rooming and Boarding Houses
8
Sales Financing
82
Sanitary Paper Product Manufacturing
1
Savings Institutions
182
Saw Blade and Handsaw Manufacturing
1
Scheduled Freight Air Transportation
15
Scheduled Passenger Air Transportation
75
Schiffli Machine Embroidery
1
School and Employee Bus Transportation
35
Seafood Canning
1
Securities and Commodity Exchanges
16
Securities Brokerage
319
Security Guards and Patrol Services
108
Septic Tank and Related Services
5
Setup Paperboard Box Manufacturing
3
Sewage Treatment Facilities
1
Sheet Metal Work Manufacturing
27
Shoe Stores
277
Siding Contractors
22
Sign Manufacturing
44
Silverware and Hollowware Manufacturing
4
Site Preparation Contractors
46
Snack and Nonalcoholic Beverage Bars
370
Soap and Other Detergent Manufacturing
9
Software Publishers
82
Software Reproducing
3
Solid Waste Collection
23
Solid Waste Landfill
3
Sound Recording Studios
32
Soybean Processing
1
Special Needs Transportation
17
Spice and Extract Manufacturing
3
Sporting Goods Stores
75
Sports and Recreation Instruction
41
Sports Teams and Clubs
15
Spring (Heavy Gauge) Manufacturing
6
Spring (Light Gauge) Manufacturing
12
Steam and Air-Conditioning Supply
2
Steel Wire Drawing
4
Storage Battery Manufacturing
1
Support Activities for Forestry
1
Surface Active Agent Manufacturing
1
Surface-Coated Paperboard Manufacturing
1
Synthetic Rubber Manufacturing
2
Tax Preparation Services
208
Telecommunications Resellers
27
Telemarketing Bureaus
26
Telephone Answering Services
9
Telephone Apparatus Manufacturing
4
Television Broadcasting
22
Temporary Help Services
266
Temporary Shelters
41
Textile Machinery Manufacturing
3
Theater Companies and Dinner Theaters
93
Thread Mills
1
Tile and Terrazzo Contractors
43
Tire and Tube Merchant Wholesalers
5
Tire Dealers
77
Tire Retreading
4
Tobacco Stores
27
Toilet Preparation Manufacturing
15
Tortilla Manufacturing
10
Tour Operators
32
Tradebinding and Related Work
23
Translation and Interpretation Services
27
Travel Agencies
309
Underwear and Nightwear Knitting Mills
1
Used Car Dealers
126
Used Household and Office Goods Moving
62
Used Merchandise Stores
113
Vending Machine Operators
27
Veterinary Services
72
Video Tape and Disc Rental
142
Voluntary Health Organizations
58
Warehouse Clubs and Supercenters
3
Watch, Clock, and Part Manufacturing
3
Water Supply and Irrigation Systems
1
Web Search Portals
10
Wholesale Trade Agents and Brokers
265
Window Treatment Stores
15
Women's Clothing Stores
344
Wood Container and Pallet Manufacturing
19
Wood Office Furniture Manufacturing
9
Wood Preservation
1
Wood Window and Door Manufacturing
7
Zoos and Botanical Gardens
5

Choosing a Company Name

A good company name can give a big boost to a new startup. It might seem like an easy thing to do, but there are many things to consider when naming a business.

Even if the name doesn't do it by itself, many naming experts believe there should be a story behind the name that ties into your company mission.

Numerous company naming issues are discussed in more detail in this article: Branding Advice.

There's one other important factor when naming a business. Since you are planning on starting a business in Chicago, it's critical that you ensure that no other Illinois company is using the business name you want to use.

Company Formation in Chicago, Illinois

It's essential that your business is formed as a legal entity that is separate from its owners. Doing so will protect you from personal liability for business debts and obligations.

The entity you form can be a corporation, LLC, sole proprietorship, partnership or other structure.

Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. Just because you are starting a business in Illinois, you don't necessarily have to incorporate in Illinois. In fact, you can incorporate in the state of your choosing. For example, it's very popular to incorporate in Delaware, and incorporating in Nevada has become very trendy as well. Don't forget, though, that you will have to register as a foreign entity in all states that you do business in.

There's a lot to know about forming a company. We recommend you read some of the educational articles about company formation that are availabe on our site, such as Piercing the Corporate Veil. You may also want to seek the advice of an lawyer. Finally, if you are starting a business in Chicago, Illinois, our information on Incorporating in Illinois may be a useful resource if you decide to incorporate in Illinois.

Don't Skip the Business Plan

A business plan is critical in laying a solid foundation for your business success. Indeed, your business plan is your game plan for how you hope to grow your business. Failure to write a business plan is a recipe for disaster.

Before you start writing a business plan, we suggest you skim Business Plan Contests. You should also take advantage of free business counselors available to you through your local SCORE chapter in Illinois.

Marketing Your New Company

To rise above the crowd in Chicago and build your business, you need a great marketing plan.

We have some helpful resources on this site for entrepreneurs who are working on marketing plans. National TV Spot Advertising Rates is an article that will stimulate a few thoughts on your marketing plan. That's just a taste of the many useful articles we have on Marketing a Small Business.

The Art of Selling

Do you know how to sell? In order to attract customers to your new Chicago business, you need to focus on sales.

Why should customers buy from you instead of buying from competitors? Let us help you refine your selling techniques through our many useful sales advice tips.

Anticipating Prospect Responses offers some helpful tips on how to sell. It's one of several good articles on our site regarding Entrepreneurial Selling.

Interviews With Chicago Entrepreneurs

Enjoy these interviews we've had with Chicago entrepreneurs.

Never Give Up

As an entrepreneur in Chicago, you won't be working for the boss anymore. You are the boss.

From this point on, you control your own destiny.

We are here to help Chicago businesses to be successful. We want to be there for you to answer your business questions, whether you are a new Chicago entrepreneur who is just getting started or you are already up and running with your new venture.

More Entrepreneurial Resources for Starting a Business in Chicago, Illinois

Here are more links that we believe will help you be successful in starting a business in Chicago.

More Business Startup Guides for Illinois

Starting a Business in Chester
Starting a Business in Chicago Heights

Browse All Business Startup Guides for Illinois
Starting a Business Guides for Other States

 

 

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary