Illinois taxes through the Illinois Department of Revenue at a 6.25% statewide base rate, with local rates stacking on top and economic nexus for remote sellers at $100,000 in sales or 200 transactions. Filing runs monthly, quarterly, or annually by liability. For construction & trades, that combination is what decides how much of your month-end is bookkeeping and how much is compliance.
Employer registration runs through the Illinois Department of Employment Security, and the entity is registered with the Illinois Secretary of State. Retailers’ Occupation Tax sourcing rules differ for in-state versus remote sellers, and Chicago layers several of its own taxes on top.
Sales tax authority
Illinois Department of Revenue — 6.25% statewide base rate
Economic nexus
$100,000 in sales or 200 transactions
Filing cadence
Monthly, quarterly, or annually by liability
Employer registration
Illinois Department of Employment Security
Entity registration
Illinois Secretary of State
Labor, materials, and installation in Illinois
The question that decides Illinois sales tax for construction & trades is how labor, materials, and installation are treated — states split on whether the contractor is the end consumer of materials or a reseller, and whether installation labor is taxable. Retailers’ Occupation Tax sourcing rules differ for in-state versus remote sellers, and Chicago layers several of its own taxes on top. We code parts and labor separately on every job so the treatment is deliberate.
Licensing and registration in Illinois
Contractor and trade licensing in Illinois is administered separately from tax registration, and the entity itself is registered with the Illinois Secretary of State. Licensing is not bookkeeping, but it touches the books — license and permit costs, bonding, and insurance all need consistent treatment, and lenders reviewing a construction & trades file will look for them.
Payroll and employer registration in Illinois
Employer registration in Illinois runs through the Illinois Department of Employment Security, a different agency from the Illinois Department of Revenue that handles your sales tax — a separate account number, a separate login, and separate deadlines. Businesses routinely register for one and forget the other, then discover the gap when a notice arrives.
Illinois rates and sourcing
The Illinois statewide base rate is 6.25%. Local rates stack on top and are generally sourced to the delivery address, so the effective rate varies within the state. Getting sourcing right is what keeps the liability account matching what you actually collected.
We keep the books. You run the business.
Categorization, reconciliation, month-end close, and clean financial statements — with nothing left for you to chase.
View pricingHow It Works
Free review
We check where your construction & trades books stand and whether Illinois activity has crossed $100,000 in sales or 200 transactions.
Register what is needed
Accounts set up with the Illinois Department of Revenue, plus the Illinois Department of Employment Security if you have employees here.
Catch up
Back periods cleaned up at a fixed quoted price, including any Illinois liability that was collected but never reconciled.
Close on cadence
Monthly close worked backward from your Illinois due dates — monthly, quarterly, or annually by liability.
Construction & Trades Bookkeeping in Illinois — Frequently Asked Questions
Do I need to register for sales tax in Illinois?
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How often would I file in Illinois?
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Who do I actually deal with in Illinois?
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Do you prepare my income tax return?
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Construction & Trades bookkeeping in Illinois
Book a free consultation. We will check where your books stand and whether your Illinois activity has crossed $100,000 in sales or 200 transactions.
- Done-for-you
- Solo or group
- Nationwide
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