Thread: IL Entity License?

Can anyone tell me what exactly this is? The great state of IL can't even tell me if I need one or not. I am assuming that I do.

The State of IL website concerning this is a little vague. I am up and operating, and don't want to cause myself any problems already!

As always, thanks in advance for the info!

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Originally Posted by Joe Suelter

.
Can anyone tell me what exactly this is? The great state of IL can't even tell me if I need one or not. I am assuming that I do.

The State of IL website concerning this is a little vague. I am up and operating, and don't want to cause myself any problems already!

As always, thanks in advance for the info!

.
Hi Joe,

What is it ?
.

That's what I want to know!!! I have no idea, and apparantly neither does Illinois. Lol. They list it directly under the home inspector license, and it's $250 dollars. I thought it might be for those inspectors naming their business rather than use their actual name. I really am just guessing though.

Originally Posted by Joe Suelter

That's what I want to know!!! I have no idea, and apparantly neither does Illinois. Lol. They list it directly under the home inspector license, and it's $250 dollars. I thought it might be for those inspectors naming their business rather than use their actual name. I really am just guessing though.

If you have a company name, i.e.. "Suelter Home Inspections", then you need to have the entity license. I have several home inspector friends in IL and they all gripe about having to pay for this license.

Thanks Scott. I thought that might be the case, but wasn't sure. So I need my inspector license, and the entity license. Wow, the state of Illinois is making some dough off us!! Thanks for the info, I'll get that submitted today.

You definitely need an entity license if you are operating as an LLC or Corp., I'm not sure if you need one if you are DBA a sole proprietorship.

I suspect that there have to be a lot of Home Inspectors here in Illinois who are operating in violation of the act as there were many fewer entity licenses that are home inspectors, and most home inspectors and I know are operating as something other than a sole proprietorship

So far the state has not got around to chasing them down, but as I know from watching the travails of some other inspectors (substantial fines for not completing C.E. by the required date and similar infractions) the state is definitely looking at noncompliance with the regulations as a revenue source, and I be willing to bet that once they start going after failure to obtain a required entity licensee they're going to be looking back at least a couple of years, and dinging malefactors for each year.

There is also the fact that some E&O carrier might decide that the failure to obtain proper licensing for your business would invalidate the insurance.

Good points Michael. I am definitely filing for mine. Question number two is, and I think I know the answer to this...I still need to register a dba with the county, right?

This is from IL IDFPR FAQ site:. Home Inspection businesses operating in a form of a Corporation, a Partnership, or a Limited Liability Company (LLC). To download the Home Inspector Entity License application, click here: http://www.idfpr.com/dpr/re/Forms/HIEntityApp.pdf.

Originally Posted by Joe Suelter

Good points Michael. I am definitely filing for mine. Question number two is, and I think I know the answer to this...I still need to register a dba with the county, right?

As far as I now, not, at least with cook county. Also, many (most?) Chicago Suburbs (Evanston, where I'm based is one) exempt state and Federally licensed professions from the requirement to obtain a city business license.

Question number two is, and I think I know the answer to this...I still need to register a dba with the county, right?

When a business name used is different from the owner(s) full legal name(s), the Illinois Assumed Name Act (805 ILCS 405/) requires sole proprietorships and general partnerships to register with their local county clerk's office. Corporations, LLCs, LLPs, and limited partnerships register an assumed name as part of their required business filings with the Illinois Secretary of State.

Initial filings/registrations generally involve publications of a notice as well, which includes the legal name(s), the legal address(es), etc. When/if the address(es) change within the county or if to a new county - the Act provides further.

I assume it is this requirement you were asking about in your follow-up question. Whether or not additional licenses (buisness licenses, etc.) are required varies from county to county and municipality to municipality; as Illinios is a "home rule" state.

Ill. HI license issued to "John Smith" and John Smith does all of his activities, advertisements, etc. as: John Smith, Home Inspector - No assumed, fictitious or "Doing Business As" (DBA) Name. John Smith's license is actually issued as "Jonathan Dwight Smith" and he does business as Jon Smith, *might be an "Assumed Business Name" - seek guidance from an attorney.

Illinois Home Inspector license issued as Jonathan Dwight Smith" and does buisness as "Dwight Smith's Home Inspections" - assumed business name.

License & legal name "William Robert Smith" and does business as "Billy Bob Smith" Home Inspection - Assumed Business name, as would "Will's Home Inspection", etc.

example:

Smith Home Inspection - assumed name.
John Smith D/B/A John the Inspector - assumed name.

Some states don't require registering of assumed, fictitious, or DBA names for sole proprietors - such as Tennessee; but Illinois does or did, and AFAIK still requires it. Check with an attorney for details, see the Act named and referenced above, and check with your county clerk.

Usually your banking institution will require proof of this information at your first opening of a DBA account (if they will be asked to accept deposit items to the assumed name - or first issuing checks with the assumed business name upon same).

As far as the Home Inspector entity license, not if you are a self-employed sole proprietor and have no employees inspecting for you.

Originally Posted by Michael Thomas

As far as I now, not, at least with cook county. Also, many (most?) Chicago Suburbs (Evanston, where I'm based is one) exempt state and Federally licensed professions from the requirement to obtain a city business license.

Michael,

Cook County Clerk, David Orr.

SEE (clickable link to specific web page @ official site): Home

Home

As mentioned in immediately prior post, a corporation registers its assumed names with the Secretary of State with its filings and reports, but a sole prop, general partnership, and a "professional services corporation" still must file and register its assumed name, according to the Cook County Clerk's official site (clickable link): Who is required to file

Businesses required to file

The following types of companies that conduct business in Cook County are required to file assumed names with the Clerk's office:

• Sole proprietorships
  Businesses defined under state law as being owned by an individual or husband and wife.
• General partnerships
  An association of two or more persons who carry on as co-owners a for-profit business entity.
• Professional services corporations
  A business corporation formed by an individual or group of individuals who are required by law to be licensed or obtain other legal authorization from the state to deliver services (examples include doctors, dentists, land surveyors, podiatrists and some attorneys). Proof of filing with the Secretary of State's office is required.

Businesses not required to file


Businesses not required to file

The following types of companies that conduct business in Cook County are not required to file assumed names:

• Limited liability companies
  A business entity, distinct from its members, which maintains on file a limited liability registration with the Secretary of State's office.
• Limited liability partnerships
  An association of two or more persons who carry on as co-owners for a for-profit business entity that is distinct from its partners and which maintains on file a limited liability registration with the Secretary of State's office.
• Limited partnerships
  An association of two or more persons who carry on as full and partial owners or investors for a for-profit business entity that is distinct from its partners.
• Corporations
  A business managed by directors and created with powers (to issue shares, buy properties, etc.) and liabilities independent of its individual members as defined by state law.

Professional Service Corporation - see 805 ILCS 10/ Professional Service Corporation Act.
Assumed Business Name Act - see 805/ILCS 405/

Illinois General Assembly - Legislation

HTH.

Originally Posted by Joe Suelter

That's what I want to know!!! I have no idea, and apparantly neither does Illinois. Lol. They list it directly under the home inspector license, and it's $250 dollars. I thought it might be for those inspectors naming their business rather than use their actual name. I really am just guessing though.

No that's not what its for. Its for a Home Inspection Entity (buisness organization) which is other than a "natural person". I believe you are thinking of an "Assumed Business Name".

See: 225 ILCS 441 (clickable link): 225*ILCS*441/*Home Inspector License Act.


specifically Section 5-12 (225 ILCS 441/5-12 (see also Section 5-10).

Application for home inspector license; entity.
Every entity that is not a natural person that desires to obtain a home inspector license shall apply to OBRE on forms provided by OBRE and accompanied by the required fee.

See also Administrative Rules, 68 Ill. Adm. Code, which can be found here (clickable link): PART 1410 HOME INSPECTOR LICENSE ACT : Sections Listing


See specifically Sections 1410.110 (Application for a Home Inspector Entity License) and 1410.220 (Assumed Name).

Which read thusly:

Originally Posted by 68 Ill. Adm. Code Part 1410

Section 1410.110 Application for a Home Inspector Entity License

An entity who desires to practice as a home inspector or provide home inspections in the State of Illinois in the form of a corporation, limited liability company or legally formed partnership shall submit to the Division:

a) An application, provided by the Division, that is signed and fully completed by the applicant;
b) The required fee set forth in Section 1410.400, payable to the Department;

c) A list of all owners, partners, officers, members, managers or directors of the entity; and

d) Articles of Incorporation, Articles of Organization or other evidence of legal formation or authority.

(Source: Amended at 34 Ill. Reg. 8063, effective June 3, 2010)

...

Section 1410.220 Assumed Name

If a licensee operates under any name other than that appearing on his or her license, he or she shall submit to the Division a certified copy of his or her registration under the Assumed Business Name Act [805 ILCS 405] at the time of application or within 30 days after the registration.

(Source: Amended at 34 Ill. Reg. 8063, effective June 3, 2010)

Note the distinctions with differences. Don't know where, what or how you are organized, licensed, or registered.

Originally Posted by Scott Patterson

If you have a company name, i.e.. "Suelter Home Inspections", then you need to have the entity license. I have several home inspector friends in IL and they all gripe about having to pay for this license.

No, that is not AT ALL correct.

Originally Posted by Joe Suelter

They list it directly under the home inspector license, and it's $250 dollars. \

What's $250.00? The inspector's fee and the entity fee are each $400.00 every two years.

Don't forget to vote in the next election.
Vote for the person that supports less SPENDING by government, less Taxes and Fees, less entitlements and less BUREAUCRACY.

This government machine is WAY TOO big to support. It's killing us.

Originally Posted by Ken Amelin

Don't forget to vote in the next election.
Vote for the person that supports less SPENDING by government, less Taxes and Fees, less entitlements and less BUREAUCRACY.

This government machine is WAY TOO big to support. It's killing us.

Yes it is. Thanks for mentioning that. Things will get under control, someday.

How is pricey Taxachusetts doing now a days. What is the average home selling for within 30 miles of Boston.

If you do business as a D/B/A you do not need an Entity license. An Entity license is required if your are a corporation or LLC. You will need to register with your county if you use an assumed name for your business. An assumed name is any business name that does not include your last name. If you do business as Suelter Home Inspections you are not using an assumed name. If you do business as Humpty Dumpty Home Inspections, that is an assumed name. If you do business as Suelter Home Inspections, LLC you need an entity license but you do not need to register an assumed name with the county since you have registered your LLC with the stat. The entity license is $250 for the first 2 year period, or part of. Renewal is $400 for the next 2 year period.

Originally Posted by Steve Duchene

If you do business as a D/B/A you do not need an Entity license. An Entity license is required if your are a corporation or LLC. You will need to register with your county if you use an assumed name for your business. An assumed name is any business name that does not include your last name. If you do business as Suelter Home Inspections you are not using an assumed name. If you do business as Humpty Dumpty Home Inspections, that is an assumed name. If you do business as Suelter Home Inspections, LLC you need an entity license but you do not need to register an assumed name with the county since you have registered your LLC with the stat. The entity license is $250 for the first 2 year period, or part of. Renewal is $400 for the next 2 year period.

Thanks Steve. That is exactly what I was hoping the State could tell me (but our state has had it's share of criminals in office ). They acted like I was speaking a foreign language.

Your post spells it all out for me, in plain everyday English. Thank you!

Originally Posted by Joe Suelter

Thanks Steve. That is exactly what I was hoping the State could tell me (but our state has had it's share of criminals in office ). They acted like I was speaking a foreign language.

Your post spells it all out for me, in plain everyday English. Thank you!

Criminals in office from your state? Nah. ... oh wait, our Pre ..... never mind!

Originally Posted by Joe Suelter

Thanks Steve. That is exactly what I was hoping the State could tell me. Your post spells it all out for me, in plain everyday English. Thank you!

Obviously Steve would fail miserably in public office around here.

Originally Posted by Steve Duchene

If you do business as a D/B/A you do not need an Entity license. An Entity license is required if your are a corporation or LLC. You will need to register with your county if you use an assumed name for your business. An assumed name is any business name that does not include your last name. If you do business as Suelter Home Inspections you are not using an assumed name. If you do business as Humpty Dumpty Home Inspections, that is an assumed name. If you do business as Suelter Home Inspections, LLC you need an entity license but you do not need to register an assumed name with the county since you have registered your LLC with the stat. The entity license is $250 for the first 2 year period, or part of. Renewal is $400 for the next 2 year period.

That is not correct. If you do business as other than your full legal name it is an assumed name under the act.

For example as stated here (clickable link): Home

"An assumed name is issued to any business entity that uses a name other than the name(s) of the individual(s) who own or operate the business. For example, a business called "John Jones, P.C." (i.e. owner's full name and title) does not have to file an assumed name, but "Jones Wrecking" does."

Doing business as other than "Joseph A. Suelter" or "Joseph A. Suelter, Home Inspector" would require registration with either the county clerk under the assumed name act, or the secretary of state, referenced as an assumed name on the annual filings for the entity.

Not having done so and maintaining under the act can be perilous regarding civil litigation matters, defaults, judgements, etc.

Do not confuse local business licensing requirements and/or exemptions, or department of revenue exemptions for acquiring a state or federal tax ID or IDES number, nor what does and does not constitute a sole prop. vs. an S corp.

Read the act, consult with an attorney.

HG, you are absolutely correct. That is what the county told me yesterday at the courthouse. It gets very confusing trying to figure out if I need a dba or an entity license.

Thank you all very much for the information. It was much appreciated.

Joe

Originally Posted by Joe Suelter

HG, you are absolutely correct. That is what the county told me yesterday at the courthouse. It gets very confusing trying to figure out if I need a dba or an entity license.

Thank you all very much for the information. It was much appreciated.

Joe

You're welcome Joe.

Don't forget that you must also file a copy of your assumed name registration with the Division of Professional Regulation in re your Home Inspector license.

See (clickable link): http://www.ilga.gov/commission/jcar/...00C02200R.html

Administrative Code, TITLE 68: PROFESSIONS AND OCCUPATIONS,
CHAPTER VIII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION, PART 1410 HOME INSPECTOR LICENSE ACT

which says:

Section 1410.220 Assumed Name

If a licensee operates under any name other than that appearing on his or her license, he or she shall submit to the Division a certified copy of his or her registration under the Assumed Business Name Act [805 ILCS 405] at the time of application or within 30 days after the registration.

(Source: Amended at 34 Ill. Reg. 8063, effective June 3, 2010)

That's 30 days from when first registration with the county clerk of the assumed name (or update/change) is made, (prior to publication & certificate of publication is filed).

HTH.

P.S. Fees are discussed here (clickable link): http://www.ilga.gov/commission/jcar/...00E04000R.html


See also f) GENERAL, 2) regarding a change (such as providing a name or address change, i.e. adding the assumed name registration certificate to an individual HI license) during the license term:

The fee for the issuance of a duplicate license certificate or pocket card, for the issuance of a replacement license certificate or pocket card that has been lost or destroyed, or for the issuance of a license certificate or pocket card with a name or address change, other than during the renewal period, shall be $25.

You betch'ya! Thanks again!!