Pub-113, Registering Your Business

1. Who must register as a retailer?
2. Under what circumstances would I be registered as a reseller?
3. How do I register?
4. How will I know that I have successfully registered?
5. What if my business has more than one location?
6. What if I change the location of my business?
7. Will I need to renew my certificate?
8. What if my certificate is lost, damaged, or destroyed?
9. What if I discontinue my business or one of my locations or change my business structure?
10. What if I need to update my business registration information?
11. Who do I contact if I have questions about registration?
12. Are there other types of taxes or fees for which I may need to register?
13. What if I sell items that must be titled and/or registered?

You must register as a retailer and remit Retailers’ Occupation Tax and any applicable local taxes administered by IDOR (sales tax) if you are engaged in the business of selling at retail tangible personal property in Illinois for use and consumption [35 ILCS 120/2a]. You must register as a retailer and collect and remit Use Tax if you are an out-of-state retailer maintaining a place of business in this state [35 ILCS 105].

You are engaged in the business of selling at retail tangible personal property in Illinois for use and consumption and must remit Retailers’ Occupation Tax and any applicable local taxes administered by IDOR if:

• you make retail sales from a location in this state to purchasers located in this state;
• you are an out-of-state retailer that maintains inventory in this state and fulfills a sale to a purchaser located in this state from that inventory;
• you sell items at craft shows, fairs, seminars, and conventions in this state; or
• beginning January 1, 2021, you are a remote retailer and either of the following thresholds was met during the preceding four quarterly periods ending on the last day of March, June, September, and December:
  • The cumulative gross receipts from sales of tangible personal property by you to purchasers in Illinois was $100,000 or more; or
  • you entered into 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois. [35 ILCS 120/2(b)]
    You are a “remote retailer” if you do not maintain within this State, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this State under your authority or a subsidiary of yours, irrespective of whether such place of business or agent is located here permanently or temporarily or whether you or your subsidiary is licensed to do business in this State. [35 ILCS 120/1]
• beginning January 1, 2021, you are a marketplace facilitator and either of the following thresholds was met for the preceding four calendar quarters:
  • The cumulative gross receipts from sales of tangible personal property to purchasers in Illinois made through the marketplace by you and by sellers on the marketplace were $100,000 or more; or
  • you and marketplace sellers selling through the marketplace cumulatively entered into 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois. [35 ILCS 120/2(c)]
    A marketplace facilitator that meets either of these thresholds is considered a retailer engaged in the occupation of selling at retail in Illinois and is liable for all applicable state and local retailers’ occupation taxes administered by IDOR on all sales to Illinois purchasers made over the marketplace, including its own sales and sales made over the marketplace on behalf of marketplace sellers.

You are an out-of-state retailer maintaining a place of business in this state and must register and collect and remit Use Tax if

• you have or maintain within this state, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this State under your authority or a subsidiary of yours, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether you or your subsidiary is licensed to do business in this State;
• you have a contract with a person located in this State under which the person, for a commission or other consideration based upon the sale of tangible personal property by you, directly or indirectly refers potential customers to you by providing to the potential customers a promotional code or other mechanism that allows you to track purchases referred by such persons. Examples of mechanisms that allow you to track purchases referred by such persons include but are not limited to the use of a link on the person’s Internet website, promotional codes distributed through the person’s hand-delivered or mailed material, and promotional codes distributed by the person through radio or other broadcast media. The provisions of this paragraph apply only if the cumulative gross receipts from sales of tangible personal property by you to customers who are referred to you by all persons in this state under such contracts exceed $10,000 during the preceding four quarterly calendar ending on the last day of March, June, September, and December;
• you have contract with a person located in this State under which:
  • you sell the same or substantially similar line of products as the person located in this state and do so using an identical or substantially similar name, trade name, or trademark as the person located in this state; and
  • you provide a commission or other consideration to the person located in this state based upon the sale of tangible personal property by you.
    The provisions of this paragraph apply only if the cumulative gross receipts from sales of tangible personal property by you to customers in this state under all such contracts exceed $10,000 during the preceding four quarterly periods ending on the last day of March, June, September, and December.
• you made sales of tangible personal property to purchasers in Illinois from outside of Illinois and met either of the following thresholds during the preceding four quarterly periods ending on the last day of March, June, September, and December:
  • the cumulative gross receipts from sales of tangible personal property by you to purchasers in Illinois were $100,000 or more;
  • or you entered into 200 or more separate transactions for the sale of tangible personal property to purchasers in this state. 86 Ill. Adm. Code 150.803.
    After December 31, 2020, this paragraph will be no longer applicable. Effective January 1, 2021, you must determine whether you are required to register as a remote retailer and remit Retailers Occupation Tax and any local retailers’ occupation taxes administered by IDOR.
• beginning on January 1, 2020, through December 31, 2020, you are a marketplace facilitator and met either of the following thresholds during the preceding four quarterly periods ending on the last day of March, June, September, and December:
  • the cumulative gross receipts from sales of tangible personal property to purchasers in Illinois by you as a marketplace facilitator and by marketplace sellers selling through your marketplace were $100,000 or more; or
  • you as a marketplace facilitator and marketplace sellers selling through the marketplace cumulatively entered into 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois. [35 ILCS 105/2d]
    After December 31, 2020, this paragraph will be no longer applicable. Effective January 1, 2021, you must determine whether you are required to register as a marketplace facilitator and remit Retailers Occupation Tax. [35 ILCS 120/2(c)]

The following definitions are applicable for the purpose of determining if you are required to register to remit Retailers’ Occupation Tax or collect and remit Use Tax.

“Marketplace” means a physical or electronic place, forum, platform, application, or other method by which a marketplace seller sells or offers to sell items.

“Marketplace facilitator” means a person who, pursuant to an agreement with an unrelated third-party marketplace seller, directly or indirectly through one or more affiliates facilitates a retail sale by an unrelated third-party marketplace seller by:

• listing or advertising for sale by the marketplace seller in a marketplace, tangible personal property that is subject to tax under this Act; and
• either directly or indirectly, through agreements or arrangements with third parties, collecting payment from the customer and transmitting that payment to the marketplace seller regardless of whether the marketplace facilitator receives compensation or other consideration in exchange for its services.

“Marketplace seller” means a person that makes sales through a marketplace operated by an unrelated third-party marketplace facilitator. For purposes of determining whether you are a “marketplace seller” after January 1, 2021, a person that is an affiliate of a marketplace facilitator is not a marketplace seller.

You will be registered as a reseller, rather than a retailer, if all of your sales of tangible personal property are nontaxable (i.e., all sales are for resale).

Register with IDOR electronically using MyTax Illinois:

• If you do not have a MyTax Illinois account, click on “Registration,” and then “Register a New Business” and complete Form REG-1, Illinois Business Registration Application. After you receive an email that your application has been processed, allow one business day before signing up for a MyTax Illinois account. To create a MyTax Illinois account, return to MyTax Illinois, click the “Sign up Now” button, and then submit the requested information.
• If you are a Corporation, S-Corp, Partnership, or LLC organization type and are registered for other tax accounts, and have a MyTax Illinois account, you can register for new tax types by simply logging into your existing MyTax Illinois account and clicking on ‘Register for New Tax Accounts’ to complete registration.
• Sole proprietorships can only register for new tax accounts by clicking on “Registration,” and then “Register a New Business” and complete Form REG-1, Illinois Business Registration Application.

Complete and sign Form REG-1, Illinois Business Registration Application, and mail or fax it to:

CENTRAL REGISTRATION DIVISION 3-222
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19030
SPRINGFIELD IL 62794-9030

Fax: 217 785-6013

We will send you a Certificate of Registration. This certificate allows you to engage in the business of selling tangible personal property. It displays your Illinois Account ID, business name, address, effective date, the tax for which you are registered, and the date the certificate will expire.

You must display your certificate in the place of business for which it was issued and where it can be easily viewed by the public.

If you are in the business of operating vending machines, we will issue a vending machine decal (sub-certificate of registration) for each vending machine you own, based on the number you provided in your registration.

If your company sells merchandise at more than one location, we will supply a certificate of registration for each location you list on your registration application. We will print the individual location address on each certificate so that you can display the appropriate certificate in the place of business for which it was issued.

If you change the location of your business, you can update your registered locations using MyTax Illinois with the maintain locations request. It is important for you to keep this information up to date to ensure you are filing using the correct tax rate. This is also important to IDOR to ensure that we allocate the tax you collected to the proper jurisdiction.

If you are registered as a retailer and are required to file sales tax returns, your certificate of registration will expire after one year. Unless we notify you otherwise, we will renew your certificate of registration automatically.

If you are registered as a reseller, you must reapply every three years. We will send you a renewal packet that you must return before we send you a new certificate.

If your certificate is lost, damaged, or destroyed, you can print a replacement using MyTax Illinois. You can also contact our Central Registration Division to request a new certificate.

If you discontinue your business or one of your locations, you must update your registration information with IDOR. In addition, you must destroy all certificates related to that business. If you discontinue one of your locations, you must destroy the certificate for that location.

If you change the structure of your business (e.g., changing from a sole proprietorship to a corporation), you must

• tell us to discontinue the old business entity, and
• register the new business entity by completing a new Form REG-1, Illinois Business Registration Application.

Note: Certificates of Registration cannot be transferred.

In addition, you must update your registration information with IDOR. MyTax allows you to close your existing business and register a new one or to maintain your registered locations. You also can contact our Central Registration Division so that we can update our records. It is important that you update your registration information with us when you go out of business or discontinue a location.

If, outside your usual course of business, you sell or transfer

• the major part of the stock of goods that you are in the business of selling,
• the furniture or fixtures of your business,
• the machinery and equipment of your business, or
• the real property of your business,

you (or the purchaser or transferee) must complete and file Form CBS-1, Notice of Sale, Purchase, or Transfer of Business Assets. Form CBS-1 must be filed no later than ten (10) days after the sale or transfer.

Most general maintenance can be completed electronically using MyTax Illinois. MyTax Illinois allows you to change legal and mailing address information, update responsible party, update owners/officers and members/managers (for Limited Liability Companies), update contact information, and cease tax accounts. MyTax Illinois also allows you to add and cease locations by using the Maintain Locations link in your Sales and Use Tax (ST-1) account in MyTax Illinois.

For registration questions, see our Taxpayer Answer Center at tax.illinois.gov. If you cannot find an answer, you can email IDOR from the Taxpayer Answer Center. You also can call our Central Registration Division at 217 785-3707.

If you are registering as a retailer, you will not need to file a separate registration application for other taxes and fees; however, you may need to complete additional information on Form REG-1 depending on the nature and location of your business. Additional information is required for the sales-related taxes and fees listed here:

Automobile Renting Occupation and Use Tax (ART)

You must be registered for this tax if you are in the business of renting automobiles for a period of one year or less. See Publication 114, Automobile Renting Occupation and Use Tax, for more information. Taxpayers registered for ART file Form ART-1, Automobile Renting Occupation and Use Tax Return.

County Motor Fuel Tax (CMFT)

You must be registered for this tax if you sell motor fuel at retail within a county that has imposed a tax on such sales within that county. See Publication 115, County Motor Fuel Tax, for more information. Taxpayers registered for CMFT file Form CMFT-1, County Motor Fuel Tax Return.

Municipal Motor Fuel Tax (MMFT)

You must be registered for this tax if you sell motor fuel at retail within a municipality within Cook County that has imposed a tax on such sales. See FY 2020-21, New Municipal Motor Fuel Tax Allowed to be Imposed by Municipalities Located in Cook County, for more information. Taxpayers registered for MMFT file Form MMFT-1, Municipal Motor Fuel Tax Return.

Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax

You must be registered for this tax if you sell canned or bottled (not fountain) soft drinks at retail in the city of Chicago. See Publication 116, Chicago Soft Drink Tax, for more information. Taxpayers registered for the Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax file Form ST-14, Chicago Soft Drink Tax Return.

Metropolitan Pier and Exposition Authority Food and Beverage Tax (MPEA)

You must be registered for this tax if you sell prepared food and beverages and you are located within the boundaries of the Metropolitan Pier and Exposition Authority (MPEA). See Publication 117, MPEA Food and Beverage Tax, for more information. Taxpayers registered for the MPEA Food and Beverage Tax file Form ST-4, Metropolitan Pier and Exposition Authority Food and Beverage Tax Return.

Prepaid Sales Tax (PST)

You must be registered for this tax if you sell motor fuel in Illinois to retailers. Taxpayers registered for PST file Form PST-1, Prepaid Sales Tax Return.

Tire User Fee

You must be registered for this fee if you sell or deliver tires in Illinois at retail. See Publication 118, Tire User Fee, for more information. Taxpayers registered for the Tire User Fee file Form ST-8, Tire User Fee.

Note: Effective January 1, 2015, leasing companies must file Form LSE-1, Tax Return for Leasing Companies, if they offer for lease for a period of longer than one year a qualifying motor vehicle, titled or registered in Illinois, and under this lease, the customer paid additional taxable amounts that were not included in the original selling price of the motor vehicle at the start of the lease. Qualifying motor vehicles are:

• all first division motor vehicles, including motorcycles; and
• the following second division motor vehicles:
  • those with a gross vehicle weight rating of 8,000
  • those of a van configuration designed to transport not less than seven or more than 16 passengers; and pounds or less;
  • those which are self-contained and designed or permanently converted to provide living quarters for recreational, camping, or travel use and have direct walk-through access to the living quarters from the driver’s seat.

When you tell us that you sell items that must be titled and/or registered (for example, vehicles, watercraft, aircraft, trailers, mobile homes, and ATVs), you will be required to file an additional return for each of these sales — Form ST-556, Sales Tax Transaction Return. Effective January 1, 2015, items sold for lease that must be titled and/or registered are reported on Form ST-556-LSE, Transaction Return for Leases.

Retailers that report transactions on Form ST-556-LSE and Form ST‑556 also must file Form ST-1.