Free guide · Ecommerce in Illinois

How to start an ecommerce business in Illinois.

Illinois is one of the best places in the country to run an online store, because Chicago sits at the rail and freight crossroads of North America. That means you can ship to most of the United States quickly and affordably, whether you fulfill orders yourself or use a third-party warehouse. A large, diverse home market also gives you real customers close by from day one.

Start with a product

The best ecommerce products to sell from Illinois.

These eight are tuned to Illinois's real strengths, from what sells to how it ships. Tap any one to explore it and find more like it inside the platform.

1. 1
   Specialty and Chicago-style food products

   The city's food reputation travels, so packaged sauces, spice blends, and pantry goods sell nationally.

2. 2
   Custom apparel and print-on-demand merch

   Print-on-demand needs no inventory, and Illinois's central location ships tees and hoodies fast.

3. 3
   Sports and team-inspired goods

   A passionate sports market supports fan apparel and accessories year-round.

4. 4
   Home goods and decor

   A broad middle-market audience keeps demand steady for well-designed home products.

5. 5
   Amazon FBA reselling and private label

   Central rail and highway access makes sending inventory to fulfillment centers efficient.

6. 6
   Beauty and personal care brands

   Direct-to-consumer beauty scales online and ships light and small.

7. 7
   Pet products and accessories

   Pet spending is resilient, and small, shippable items are ideal for ecommerce.

8. 8
   Dropshipping and curated online storefronts

   Low startup cost lets you test niches before committing to inventory.

Why Illinois works for online business.

Chicago is the logistics heart of the country, so shipping and fulfillment are fast and cost-effective no matter where your customers live. The metro gives you a huge local market and a deep pool of design, marketing, and warehouse talent to hire from as you grow. Illinois has a flat state income tax, which keeps the math simple as your store starts to earn.

Registering an online business follows the same path as any other business in the state. For the full picture, read our complete guide to starting a business in Illinois.

The steps to launch.

1. 1

   Form your business with the Illinois Secretary of State

   Most online sellers form an LLC for the liability separation between the store and their personal finances. File directly with the Illinois Secretary of State and pay only the state's own filing fee. Our free name generator checks the matching web domain with every store name it suggests.

2. 2

   Get your EIN free from the IRS

   The Employer Identification Number is your business tax ID, and payment processors and banks will ask for it. The IRS issues it directly at irs.gov in minutes, at no charge. Get the EIN at irs.gov ↗

3. 3

   Register for an Illinois sales tax permit

   Register with the Illinois Department of Revenue before you start selling taxable goods so you can legally collect and remit sales tax on orders shipped to Illinois customers.

4. 4

   Pick your platform: Shopify, Etsy, or Amazon

   Shopify gives you your own branded store, Etsy plugs you into a handmade and vintage marketplace, and Amazon offers the largest built-in audience. Many sellers start on one and add others later. When you set your prices, our free pricing and margin calculators help you cover fees, shipping, and profit.

5. 5

   Set up payments and a business bank account

   Connect a payment processor so you can accept cards, and open a business bank account with your EIN and formation documents to keep business money cleanly separate from personal money.

6. 6

   Handle sales tax nexus as you grow

   Selling into other states can create a sales tax obligation there once you cross their sales thresholds. Track where your customers are and register in new states as you reach them.

On sales tax: Illinois requires online sellers to collect sales tax on taxable goods sold to Illinois customers, so register for a sales tax permit with the Illinois Department of Revenue before you start selling.