# Starting In Illinois



## LjD (Nov 11, 2006)

Its been a while I posted, i have just been reading... I'm finally taking the step and planning to regsiter everything... For those that are familiar with filling a business in chicago what do I need? I'm in the process of opening a apparel line. Primarily i'll be selling online and move on to retail stores.. I'm filling under an S Corp. But I need help on what else I need: Reseller Liscense (what is this exactly), DBA (?), Tax ID. I know I have to file the S Corp through the IRS, so do need to register this before I can register with the state for the other liscenses? Thanks....


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## tcrowder (Apr 27, 2006)

You can file as an LLC, that way income is not taxed twice.


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## LjD (Nov 11, 2006)

Same goes for S Crop. All the income goes towards the owner so I will only file for my income tax.


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## GameFaceChicago (Oct 2, 2007)

An S-Corp is the way to go. 

In order to get your resale #, you need to go the Illinois Dept. of Revenue and apply. Your resale # will enable you to receive wholesale prices.

What kind of t-shirt business are you starting? Where are you planning a stor in Chicago?


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## LjD (Nov 11, 2006)

Im planning just something small.. Gearing towards the street market. No store yet, just want to start online and see where it goes. But thanks for the info. The IL website gets too confusing... Game did you also file for an S Corp?


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## MP (Nov 14, 2007)

LjD, I think the majority of small startup companies should START as an LLC. That aside, here's the link to the fed tax ID # info (you can apply from this page as well) ---> http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
Hope this helps. MP


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## gmille39 (Oct 18, 2006)

LjD said:


> Same goes for S Crop. All the income goes towards the owner so I will only file for my income tax.


You can go onto the Illinois web site and get your IBT number pretty quickly.


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## GameFaceChicago (Oct 2, 2007)

Yes, I'm setup as an S-Corp An S-Corp and LLC are pretty much the same, but here is the biggest difference:

*Self-Employment Tax Break:* Profits of the S-Corp which pass through to the shareholders are not subject to self-employment tax (Social Security and Medicare which is approximately 15%). Rather, self-employment is only taxed on the portion classified as a "reasonable salary". LLCs and sole-proprietorships must pay self-employment tax on all income. The ability to minimize self-employment tax is deemed to be one of the greatest benefits of a s-corporation.


I have no idea why you would want to be setup as an LLC just for this reason alone. 


Hope this helps
Kevin


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## MP (Nov 14, 2007)

Again, to each their own. I'm a lawyer and do some business formation work, when I'm not making clothes. There are a ton of articles out there that thoroughly discuss the pros and cons to the various forms of business entities. I assume that you have read them. Unless there are reasons related to investors/investment, banks, loans, etc., many professionals in my experience suggest starting with an LLC. It's cheaper than most, easy to switch, provides good liability protection, taxation is good, etc. All my businesses start as an LLC. If I need to change to something else in the future I can do so easily and without a lot of hassle. Just my approach.


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## LjD (Nov 11, 2006)

Kinda getting the process together now... What is a DBA? What is it used for? I'm going to be a one man show, so can i file as all of the above for S Corp?


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## gmille39 (Oct 18, 2006)

LjD said:


> Kinda getting the process together now... What is a DBA? What is it used for? I'm going to be a one man show, so can i file as all of the above for S Corp?


DBA, or Doing business as...

Jorge...Doing business as Tshirts...

Everything goes under your personal taxes when you file using your social security number.


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