Restaurant Permits & Licenses in Chicago, IL

Even single-member LLCs may need an EIN for banking or state tax purposes. Application is free via IRS online system. Required for MyTax Illinois registration.

LLC owners must report business income on Schedule C (Form 1040) and pay self-employment tax via Schedule SE. Must make quarterly estimated tax payments if expected tax liability exceeds $1,000. Single-member LLCs are disregarded entities for federal tax purposes.

Restaurants selling alcohol must register with TTB and obtain a Federal Basic Permit. While no federal excise tax applies to restaurant sales of alcohol for on-premise consumption, compliance with TTB regulations is required. Registration is part of Alcohol Industry Permitting System (AIPS).

Applies to all sales of alcoholic beverages. Must file monthly or quarterly. Registration via Cook County Clerk’s Office or online portal. Separate from state liquor license.

Required for all food service establishments; includes plan review fee of $400+

Chicago restaurants handled by city health dept; suburban Cook Co. requires this

Confirms property zoned for restaurant use (typically C1/C2/B3 districts)

Required for kitchen installs, ADA upgrades, etc.

Must comply with Municipal Code Sec. 7-9-200 et seq.

Includes hood suppression system certification

Verifies compliance with building/fire codes

Required for all commercial alarms per Municipal Code 15-28

Chicago has separate program via CDOT

May require additional police/traffic details

Mandatory for all employers with employees in Illinois under the Illinois Workers' Compensation Act (820 ILCS 120/). Sole proprietors and LLC members without employees are exempt. Coverage must be secured through private insurer or self-insurance approved by IWCC.

Not mandated by Illinois state law, but often required by local health departments, landlords, or third-party delivery platforms. Strongly recommended for protection against customer injury claims. Regulated indirectly through local health and safety compliance.

Required for all LLC formation in Illinois. Annual report separate requirement.

Applies to all LLCs; failure to file leads to inactive status.

Registration valid 10 years; publish in newspaper in counties over 2M population.

Issued by local health departments under state authority; plan review required pre-opening.

Required for person-in-charge per shift; ANSI-accredited programs only.

State-specific exam after approved training; required for food service manager.

Register online via MyTax Illinois; restaurants typically collect 6.25% state sales tax + local.

Local approval required first; state license issued after. Fees per fee schedule at source.

Restaurants in Illinois must collect 6% state sales tax on prepared food and beverages. Local municipalities may impose additional local sales taxes (up to 2.75%). Registration is done via Form REG-1 through MyTax Illinois. Effective July 1, 2023, all sales tax filings and payments must be made electronically via MyTax Illinois.

Employers must withhold Illinois income tax from employee wages. Registration is completed via Form IL-7004 through MyTax Illinois. Employers must file Form IL-941 (quarterly) and Form IL-501 (annual reconciliation).

Employers must pay state unemployment insurance (SUI) tax. New employers pay 3.75% on first $14,000 of each employee’s wages annually (2024 rate). Rate may change after experience rating is established. Registration is done via IDES online system or Form IDES 5000-REC.

All LLCs registered in Illinois must file an Annual Report with the Secretary of State. This is not a tax but a compliance requirement that includes a fee. Failure affects good standing status. Payment can be made online via the Illinois SOS website.

Applies to restaurants providing 'amusement' such as live music, DJs, or dancing. Does not apply to standard dining without entertainment. Registration via Chicago Business Tax Application. Must file monthly or quarterly depending on volume.

Restaurants in Chicago must obtain a Business Tax License under the Food and Beverage category. Tax is based on gross receipts with graduated rates. Must file and pay monthly or quarterly via the Chicago Business Tax System.

Illinois abolished the Corporate Franchise Tax effective January 1, 2018. It no longer applies to any business entity, including LLCs. LLCs are instead subject to the Personal Property Tax Replacement Income (PPTR) tax, which is reported on the Illinois Form IL-1065 or IL-1120-ST.

LLCs in Illinois are subject to the PPTR tax, which is reported on Form IL-1065 (Partnership Return) or Form IL-1120-ST (S-Corporation Return). This is an annual tax on net income allocated to Illinois. Must be filed even if no tax is due.

Applies to all restaurants open to the public. Requires accessible entrances, restrooms, seating, and service counters. New construction or alterations must comply with ADA Standards for Accessible Design. Existing facilities must remove barriers if "readily achievable.

Required under Illinois Vehicle Code (625 ILCS 5/) for all vehicles registered to the business. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage. Personal auto policies do not cover business use.

Mandatory for all businesses holding an alcohol license under ILCC rules. Part of the 'Responsible Serving Program' requiring training and insurance. Required to cover damages from alcohol-related incidents (e.g., over-serving leading to injury).

A surety bond of $5,000–$50,000 (based on license type) is required for all on-premises liquor licenses. The bond guarantees compliance with ILCC regulations. Example: Class A Retailer license requires $10,000 bond. Paid annually as part of license renewal.

Not mandated by Illinois law, but effectively required through risk management. Restaurants selling food are exposed to product liability claims (e.g., foodborne illness). Not a standalone legal mandate but covered under general liability policies. Strongly recommended.

Not legally required for restaurants in Illinois. Typically relevant for consultants or service providers with professional advice exposure. Restaurants generally do not need E&O unless offering dietary counseling or meal planning as a professional service. Not mandated by state or local authorities.

Required for LLCs with employees or those that file employment, excise, or alcohol tax returns. Even single-member LLCs without employees may need an EIN to open a business bank account or comply with state requirements.

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of the owner's Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. LLCs electing corporate taxation must file Form 1120 or 1120-S.

Employers with employees must provide a safe workplace, display OSHA poster (available free), report fatalities within 8 hours and hospitalizations within 24 hours, and maintain injury and illness records (Form 300, 301, 300A) if over 10 employees or in certain industries. Restaurants are required to keep records if they have more than 10 employees.

All employers in Illinois must carry workers’ compensation insurance or qualify for self-insurance. Restaurants are classified under higher-risk codes due to kitchen hazards.

Required posters include federal and state minimum wage, EEO, OSHA, FMLA, and workers’ comp notices. Employers must update posters when laws change. IDOL provides a checklist of required postings.

Illinois requires retention of payroll and tax records for at least 4 years. Federal law (IRS and DOL) requires 4 years for tax records and 3 years for employment records. Best practice is to retain for 4–7 years.

All liquor licenses in Illinois expire on June 30 each year and must be renewed by July 1. Applications and fees are submitted through the ILCC. Late renewals incur penalties.

A Certificate of Occupancy (CO) is required before opening. Some jurisdictions require periodic re-certification after renovations or change of use. Not typically annual, but must be maintained.

Restaurants must comply with ADA standards for accessible entrances, restrooms, seating, and signage. No formal renewal, but compliance is subject to complaint or inspection.

Some counties require individual food handler permits for all staff. Cook County mandates a food handler course and permit for each employee. Not required statewide, but common in larger jurisdictions.

FDA issues the Food Code, which is adopted by Illinois and enforced at the state and local level. Federal role is advisory, but restaurants must comply with FDA food safety standards as implemented by Illinois Department of Public Health and local health departments.

Only required if the restaurant manufactures or sells alcohol in bulk (e.g., operates a brewery or distillery). Most restaurants serving alcohol under a state liquor license do NOT need a federal TTB permit unless producing alcohol on-site. This requirement is specific to production, not retail service.

Restaurants must ensure all advertising is truthful and not misleading (e.g., portion sizes, ingredient claims, pricing). Applies to menus, websites, and promotions. FTC enforces against deceptive practices under the FTC Act.

Applies to all employees. Federal minimum wage is $7.25/hour. Tipped employees may be paid $2.13/hour if tips bring total to at least $7.25/hour. State law (Illinois) sets higher minimum wage ($14.00 in 2024), so state law prevails. FLSA still applies for recordkeeping and overtime (1.5x pay after 40 hours/week).

Requires eligible employees (12 months, 1,250 hours in past year) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons. Most small restaurants do not meet the 50-employee threshold.

All employers must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is not federally required for restaurants unless contracting with federal agencies or operating in states with E-Verify mandates.

Under Section 608 of the Clean Air Act, technicians must be certified to handle refrigerants. Restaurant owners must ensure only certified technicians service HVAC and refrigeration units. Applies to most full-service restaurants with walk-in coolers or AC systems.

Required for all domestic food facilities under the FDA Food Safety Modernization Act (FSMA). Restaurants that prepare and serve food are considered food facilities and must register with the FDA. Registration must be renewed every 2 years during even-numbered years.

If a restaurant determines it has handled a food product that may cause serious health consequences (e.g., contamination), it must report to FDA via the Reportable Food Registry. Applies to all food facilities, including restaurants.

LLCs in Illinois must file an Annual Report with the Secretary of State each year. The due date is based on the business’s formation date. For example, if formed on March 15, the report is due by May 14 each year.

Businesses registered with the Illinois Department of Revenue (IDOR) must keep registration active. While not a formal 'renewal,' any change in business structure, address, or ownership must be reported within 20 days using Form REG-1. Sales tax, liquor tax, and other applicable taxes are filed periodically.

At least one employee (or owner) must hold a valid Food Service Sanitation Manager Certification from an ANSI-accredited program. Certification is valid for 5 years and must be renewed via retesting. Required for all food establishments in Illinois.

Restaurants are subject to routine and complaint-driven inspections by local health departments. High-risk establishments may be inspected more frequently. Inspection reports must be posted visibly.

Commercial food service establishments are classified as 'Assembly' or 'Mercantile' occupancy and require periodic fire safety inspections. In some areas, inspections are conducted by the State Fire Marshal; in others, by local authorities.

Restaurants must file Form IL-941 for sales tax. Filing frequency is determined by the IDOR based on sales volume. Most restaurants file monthly or quarterly. Electronic filing is required for most businesses.

Employers must withhold state income tax and file Form IL-501. Frequency is based on payroll volume. Electronic filing is mandatory for most employers.

Employers must file Form 941 quarterly to report federal income tax, Social Security, and Medicare withholding. Deposit schedules depend on payroll size.

Form 940 is filed annually. Most employers qualify for a credit reducing the effective FUTA rate to 0.6% if they pay Illinois unemployment tax on time.

Employers must file Form UI 3/UI 3X quarterly and pay unemployment insurance tax. New employers are assigned a standard rate until an experience rating is established.