Business license in Chicago, IL
Chicago requires a Limited Business License (most general retail sales and services); Regulated Business License for certain activities for most businesses. Official BACP page lists $250 per 2-year term for a Limited Business License (and $250 for Home Office/Occupation). A secondary source reports the Limited Business License rose to $500 effective January 1, 2026; not confirmed on an official page.
Limited Business License (most general retail sales and services); Regulated Business License for certain activities. Official BACP page lists $250 per 2-year term for a Limited Business License (and $250 for Home Office/Occupation). A secondary source reports the Limited Business License rose to $500 effective January 1, 2026; not confirmed on an official page.
Home-based businesses
A city business license is required for home-based businesses ($250 listed). Business must be secondary to residential use, conducted inside the home, no exterior signs, at most 1 non-resident employee, 2 patrons at a time and 10 per day; many uses prohibited (food, medical, barber, auto repair, etc.). Initial information submitted in person at the Small Business Center.
Other common requirements
- Zoning review
- Register with county, state (IL Department of Revenue), and federal agencies before applying
- Assumed name registration with Cook County Clerk if using a DBA
- Additional activity-specific licenses (call 312-744-6249)
Local rules depend on what you do and where. Use this as a starting point, then confirm with City of Chicago Department of Business Affairs and Consumer Protection (BACP): official page.