CNBC 2025 · #13 of 50
Illinois
Very favourableRank: #13 of 50
Year-over-year movement
Category breakdown
All 10 CNBC categories — score out of category max, rank among 50 states.
CNBC methodology — 10 categories, 2,500 points max
Founder Snapshot
Lite operational context for Illinois — what to know before operating here. Sourced public facts, separate from CNBC scores.
Tax posture
Illinois corporate income tax is 7% plus 2.5% Personal Property Replacement Tax (9.5% combined for C-corps). Personal income tax is a flat 4.95%.
Source: Illinois Department of Revenue
Business registration
Register entities through the Illinois Secretary of State Business Services.
Source: Illinois Secretary of State
Compliance calendar
Annual reports are due before the first day of the anniversary month; franchise taxes may apply to corporations.
Source: Illinois SOS — Annual Reports
Multi-state heads-up
If you operate outside Illinois or hire remotely — informational, not legal advice.
Remote sales & economic nexus
Illinois requires remote sellers and marketplace facilitators to collect Retailers' Occupation Tax once nexus exists.
Source: Illinois DOR — Remote Sellers
Remote employees & payroll
Employers with Illinois workers must register for withholding and unemployment insurance.
Source: Illinois DOR — Withholding
Also applies across state lines
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If you are incorporated elsewhere but transact business here, you may need to foreign-qualify with the Secretary of State.
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Multi-state operations often trigger registration, withholding, or nexus rules — confirm with official state agencies.
Source: IRS — State government websites
Regulatory Pulse
Recent regulatory changes in Illinois — sourced public updates for founders operating here.
Paid Leave for All Workers Act
Most Illinois employers must provide paid leave employees can use for any reason, accrued per hour worked.
Source: Illinois Department of Labor
AI video interview disclosure (IVAA)
Employers using AI to analyze video interviews must notify applicants and explain how AI is used.
Source: Illinois General Assembly — IVAA
Biometric Information Privacy Act (BIPA)
Private entities need written consent and a retention policy before collecting fingerprints, face scans, or other biometrics.
Source: Illinois General Assembly — BIPA
Personal Information Protection Act (PIPA)
Illinois requires reasonable security measures and breach notification for personal information.
Source: Illinois Attorney General