Guide

Do I need a business license in Chicago?

Short answer from the City: most business activities in Chicago need a license. Which one depends on what you do and where you do it.

What the City says

The Department of Business Affairs and Consumer Protection (BACP) issues business licenses. Its guidance says most business activities in Chicago require a license, with some exemptions. The application steps and documents depend on the license type.

How to find yours

Write down what you will do: sell online from home, sell at a market, run a store, repair, resell used goods.
Check the City's license types guide for that activity.
Apply through Chicago Business Direct online, or in person at the Small Business Center. An in-person application includes a Business Information Sheet.

Licenses resellers ask about

Home-based business license if you work from your home. It has rules about space, signs and visitors.
Limited Business License for many storefront retail businesses. I priced it at $500 for two years (a secondary source says it rose from $250 on Jan 1, 2026), and the City adds a card processing fee. Confirm the fee with the City.
Secondhand dealer license for businesses that buy and sell used goods in certain categories. I priced it at $1,100 for two years. Confirm with the City.

Other things to check

Zoning review. For some licenses the City checks that your address allows the business. Ask BACP what applies to you.
Signs and awnings. If you put signs, awnings or lights over the public way, that is a separate permit.
Your state tax account. A City license does not replace Illinois sales tax registration.

Who to ask

The City's business licensing help line is 312.744.GOBIZ (744.6249), and the email is businesslicense@cityofchicago.org. Calling before you apply can save you a rejected application.

I am not a CPA or an attorney

This page is general information, not legal or tax advice. Rules, fees and forms change, so confirm with the agency. For advice about your situation, talk to a CPA or an attorney.

Sources: City of Chicago: applying for a business license. Checked Oct 27, 2026.

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