General contractor licenses
in Chicago, Illinois
Start with the main licenses and permits below. For a checklist based on your own business, tell us what you’re opening and how it will operate.
Researched Sep 2026
About this example
The business is a home-based general contractor located in Chicago, Illinois, serving customers in person and online while employing W-2 employees. It primarily sells services and does not prepare or serve food or sell alcohol.
Requirement labels below refer to this setup. Conditional items depend on additional details.
Authorities researched
- Federal
- Federal Government
- State
- Illinois State
- County
- Cook County
- City
- City of Chicago
Details to confirm before you apply
- What entity type will the business choose (LLC, sole proprietorship, etc.)?
- Will the business operate under a trade name different from its legal name?
- Will any projects be located in unincorporated Cook County?
- What are the weights of the commercial vehicles used?
- Will the business perform any roofing work that requires a state license?
- What is the current status of the business's insurance coverage?
- Confirm with the responsible agencies whether additional requirements apply in these areas: New-hire reporting; Commercial vehicle rules; Lead-safe renovation firm certification; Individual lead-safe renovator qualification; City business license or tax registration; Home occupation rules. These areas remain unresolved in this guide.
The main licenses and permits
6 of 13- 01General Contractor License (trade license)City of Chicago Department of Buildings · Chicago
The business is a general contractor performing construction, alteration, repair, or demolition work in Chicago; a City of Chicago general contractor license is required for most such work.
RequiredOne year (annual); license auto-inactivates if the insurance policy expires - 02Illinois business tax registration (Form REG-1)Illinois Department of Revenue (IDOR) · Illinois
Any business conducting business in Illinois or with Illinois customers must register with IDOR before making purchases, sales, or hiring employees.
RequiredNone (update registration when information changes) - 03Sales and use tax (Retailers' Occupation Tax / Use Tax) registrationIllinois Department of Revenue (IDOR) · Illinois
A construction contractor incurs use tax on materials permanently incorporated into real estate and Retailers' Occupation Tax liability if it sells tangible personal property without installation.
RequiredFile returns per assigned schedule (monthly/quarterly/annually based on liability) - 04Illinois income tax withholding registrationIllinois Department of Revenue (IDOR) · Illinois
The business will have W-2 employees paid in Illinois and must withhold Illinois income tax from their wages.
RequiredQuarterly returns; payments monthly (new taxpayers) or semi-weekly once withholding exceeds $12,000 in the look-back period - 05Illinois income tax account (pass-through entity)Illinois Department of Revenue (IDOR) · Illinois
An LLC is a pass-through entity; the business registers for income tax through REG-1 and files an Illinois partnership return (IL-1065).
RequiredAnnual return - 06Employer Identification Number (EIN)Internal Revenue Service (IRS) · Federal
The business will hire W-2 employees, and the IRS requires an EIN to hire employees and to operate an LLC or corporation.
RequiredNone (one-time number)
This example includes 7 other potential requirements. A report based on your business explains which apply, how to file, published fees and timing, and what to complete first.
Make the checklist yours
Your location, activities, and business structure can change the list. Get a free preview for your business, then decide whether to unlock the full report for $49.
Questions people ask
What city business licenses or registrations should a general contractor in Chicago check?
This guide does not establish whether Chicago requires a stand-alone general business license or registration. Confirm that question with the city, in addition to reviewing the industry permits and registrations below.
How much do licenses and permits cost for a general contractor in Chicago?
About $150 in published fixed fees, plus variable fees. Several items have fees that depend on your entity type, square footage, or payroll, so the full report lists each fee as the agency publishes it.
What should I do first?
Review Employer Identification Number (EIN) (Internal Revenue Service (IRS)), then Federal employment taxes (income tax withholding, Social Security, Medicare, FUTA) (Internal Revenue Service (IRS)), then Form I-9 Employment Eligibility Verification (U.S. Citizenship and Immigration Services (USCIS)). Confirm each item's applicability and prerequisites before applying; the report provides a suggested order for the full checklist.
Is this legal advice?
No. It is a research summary of public requirements published by government agencies, each linked to its official page. Confirm with the issuing agency before filing.
Related guides
Researched from official government sources on September 2, 2026 for a typical general contractor. Requirements change and depend on your facts; this page is not legal advice. Confirm with the issuing agency before filing.