General Contractor Permits & Licenses in Joliet, IL

Required for all LLCs. Annual report required separately (see below).

Applies to all LLCs; filed online via CyberDrive.

Must publish in newspaper for 3 weeks in county of use; renew every 10 years.

Applies to most general contracting involving homes; exemption certificate issued. Effective as of current program.

Requires $300,000 liability insurance proof and $20,000 bond. No exam required. Law effective January 1, 2023 (Public Act 102-0917).

Requires EPA-approved training and exam. Applies if general contracting involves abatement.

General contractors often need RET-1 registration if not purely service-based.

Contractors pay 6.25%-11% use tax on materials; pre-register via MyTax Illinois.

General contractors may be required to collect sales tax on materials sold to customers if they provide both labor and materials. Contractors who only provide labor for improvements to real estate are generally not subject to sales tax on the total contract price. However, they must still collect tax on any separately stated materials. See IL Dept. of Revenue guidance: https://www2.illinois.gov/sites/tax/Documents/publications/rot-1.pdf

Required for all employers in Illinois. Must register online via MyTax Illinois. Employers must withhold state income tax from employee wages. See: https://www2.illinois.gov/agency/idor/Pages/Withholding-Tax.aspx

All employers with employees in Illinois must register with IDES. Tax rate varies by experience rating; new employers pay 3.85% on first $14,000 in wages per employee (2024 rate). See: https://ides.illinois.gov/employer/employer-tax-information.html

LLCs in Illinois are pass-through entities by default, so income flows to members' personal returns. However, if the LLC elects to be taxed as a corporation, it must file Form IL-1120-ST. Most LLCs file Form IL-1065 (Partnership Return) or include income on members' Form IL-1040. Registration is automatic upon formation with the Secretary of State and IRS EIN application. No separate 'registration' step beyond initial business setup and EIN.

This is the 'LLC Tax' under 35 ILCS 5/230. All LLCs in Illinois must file Form IL-1065 and pay this tax annually, regardless of income. The tax is calculated on net income allocated to Illinois. See: https://www2.illinois.gov/sites/tax/Documents/publications/it-1065.pdf

General contractors in Chicago must register for the Chicago Business Tax (CBT) under the 'Service' category. Must file quarterly returns. See: https://www.chicago.gov/content/dam/city/depts/fin/supp_info/CBT_Service_Classification.pdf

Some Illinois municipalities (e.g., Aurora, Naperville) impose local occupation taxes on contractors. Contractors should check with local county or city clerk. The Illinois Municipal League maintains a directory: https://www.illinoismunicipal.org

Required for all LLCs with employees or multiple members. Single-member LLCs without employees may use owner's SSN, but EIN is recommended. Apply online at: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Required for all general contractors performing work in Chicago. Class B covers most residential/commercial construction.

Confirms property is zoned for contractor business use (e.g., M1/M2 districts typically allowed).

Required for structural alterations, electrical, plumbing, HVAC work.

Must comply with Chicago Zoning Ordinance sign regulations.

Required for operations involving hazardous materials common in contractor yards.

Verifies building meets current building and fire codes.

False alarm fines escalate; 3 free false alarms per year.

Chicago businesses exempt; applies to suburban Cook County.

Each Cook County suburb has independent contractor licensing. Must research specific municipalities.

Limited to administrative work only; no storage of equipment/materials allowed.

Required for all employers with employees in Illinois under the Illinois Workers' Compensation Act (820 ILCS 140). Sole proprietors without employees are exempt but may elect coverage. Partners and corporate officers may be excluded only if they file a timely election form (Form I-5000).

Not mandated by Illinois law for general contractors. However, it is strongly recommended and often required by clients, subcontractors, or project contracts. Some local municipalities or project owners may require proof of general liability insurance for bidding or permitting.

Not legally required for general contractors in Illinois. However, may be required for design-build projects or when providing engineering or architectural services. Recommended for risk mitigation.

A $10,000 surety bond is required as part of the licensing process for General Contractors in Illinois. This is a license bond, not a performance bond. It protects clients from fraudulent or unethical practices. Required under 225 ILCS 330/1 et seq. (Illinois General Contractors License Act).

Illinois law (625 ILCS 5/3-401) requires all motor vehicles operated on public roads to have liability insurance meeting minimum limits: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage. Applies to business-owned or leased vehicles used by the contractor.

Not legally required in Illinois unless the business is engaged in manufacturing or selling products. General contractors who only perform construction services (labor) are not subject to product liability mandates. However, risk exposure exists and insurance is recommended if selling materials or built-in components.

Only required if the contractor serves or sells alcohol (e.g., at a job-site event or promotional function). Most general contractors do not engage in this activity. A liquor liability policy or special event permit with insurance is required under the Illinois Liquor Control Act (235 ILCS 5/1).

A $10,000 surety bond is required for all applicants seeking a General Contractor license under the Illinois General Contractors License Act (225 ILCS 330). The bond must be issued by a surety company licensed in Illinois and protects the public from financial loss due to contractor misconduct. This is distinct from performance or payment bonds on projects.

While not legally required for all single-member LLCs without employees, obtaining an EIN is standard practice for business banking and contractor licensing. Must apply via IRS Form SS-4.

General Contractor LLCs are typically treated as disregarded entities (single-member) or partnerships (multi-member) unless they elect corporate taxation. Profits pass through to owners who pay self-employment tax. Multi-member LLCs must file Form 1065.

General Contractors must provide a workplace free of recognized hazards (OSH Act Section 5(a)(1)). Specific standards include fall protection (29 CFR 1926.501), scaffolding (29 CFR 1926.451), hazard communication (29 CFR 1910.1200), and head/eye protection (29 CFR 1926.100, .101). Mandatory posting of OSHA Form 300A (summary of work-related injuries) by February 1 each year if applicable.

All construction businesses, including General Contractors, must comply regardless of exemption status if over 10 employees. Electronic submission of Form 300A required for employers with 250+ employees or 20–249 employees in designated industries (including construction).

General Contractors must ensure physical access to offices, job sites open to clients, and any public-facing facilities. Includes ramps, door widths, restroom accessibility. Website accessibility is increasingly enforced under ADA Title III.

Required for all General Contractors performing renovation work on pre-1978 structures. Firm must be EPA-certified, use certified renovators, follow lead-safe work practices, and provide EPA-approved educational materials to clients. Applies even if no employees are involved.

General Contractors must comply with OSHA asbestos standards (29 CFR 1926.1101) and EPA worker protection rules. Includes training, exposure monitoring, and use of protective equipment. Notification requirements may also apply under NESHAP.

Requires containment, wet scraping, HEPA vacuuming, and proper disposal of waste to limit lead emissions. Part of broader RRP rule enforcement.

General Contractors must avoid deceptive advertising, honor warranties, and comply with the FTC’s “Right to Rescind” rule for home improvements (3-day cancellation right). Must provide written contracts and avoid “bait-and-switch” tactics. Applies to all consumer-facing advertising and sales practices.

All employers must verify identity and work authorization using Form I-9. E-Verify is not federally mandated for most contractors but may be required by state law or federal contracts.

General Contractors must pay at least federal minimum wage ($7.25/hour), overtime (1.5x regular rate for >40 hours/week), and maintain accurate records. Misclassifying workers as independent contractors may trigger liability.

Requires eligible employees (12 months service, 1,250 hours) to be granted up to 12 weeks of unpaid, job-protected leave annually for qualifying reasons. Posting notice required.

Requires contractors to maintain a drug-free workplace policy, notify employees of standards, and take actions against employees who violate. Does not require drug testing unless under separate federal mandate.

General Contractors storing large volumes of flammable or toxic materials on-site must report to state emergency response commissions (SERC), local emergency planning committees (LEPC), and fire departments under EPCRA.

General contractors may be liable for sales tax on materials or services depending on contract structure. Must file Form IL-100.

Includes OSHA Job Safety Law poster (OSHA 2203), Employee Rights Under the OSH Act, and federal minimum wage information. Available free from OSHA website.

Required posters include Illinois Minimum Wage, Sexual Harassment Prevention, and Employee Rights under the Illinois Human Rights Act. Some localities (e.g., Chicago) have additional posting requirements.

Licensed contractors must display their IDFPR-issued license and liability insurance certificate at their principal place of business.

Illinois law requires all employers with employees to carry workers' comp insurance. Independent contractors are excluded. Policy must be from an IWCC-approved carrier.

All Illinois LLCs must file an Annual Report with the Secretary of State to maintain active status. The report includes current principal address, registered agent, and management structure.

Businesses registered for state taxes (e.g., Sales Tax, Withholding Tax) must keep information current. No annual renewal, but updates required within 20 days of change.

Not all general contractors require a state license in Illinois. Licensing is trade-specific (e.g., electrical, plumbing, HVAC require separate licensing). General contracting for residential buildings over $1,000 in value requires registration as a Residential Building Contractor with IDFPR.

Includes 3 hours of business and law ethics, 3 hours of safety, and 24 hours of trade-specific education. Courses must be IDFPR-approved.

LLCs taxed as S-Corps must file Form 1120-S. Employers must file Forms 940 (FUTA), 941 (quarterly), and W-2/1099 forms. EIN itself does not require renewal.

Employers must file Form IL-941 quarterly and remit withheld taxes. Frequency determined by the Department of Revenue.

Construction businesses must maintain OSHA 300 logs if over threshold. Exempt if under 10 employees or low-risk, but must report fatalities or hospitalizations.

LLCs must maintain records including articles of organization, operating agreement, membership changes, and financial records at principal office or registered agent.

Inspections are required at key stages of construction. Frequency and types depend on project scope and local code. Not a recurring annual obligation but a project-specific compliance requirement.

Resale certificates do not expire under Illinois law, but many vendors require renewal every few years. Best practice is to update annually.

Many Illinois cities (e.g., Chicago, Naperville) require annual business license renewal. Fees and deadlines vary by location.