Technically if you are an "e-tailer" which means you are a retailer and there's the Illinois Retailer's Occupation Tax to consider -- that's really our sales tax -- which you as the retailer are obligated to collect on behalf of the State and remit with forms ST-1 periodically. You need to register with the State of Illinois. Whether you are obligated to collect other states' sales taxes for internet sales becomes problematic. As to a businesss licenses, it may be a zoning issue -- if you are operating out of your home you need to be zoned for a "home business" but if you will have a business premises that's different - check w/ the zoning people in town if you plan on attempting to run a business out of your home that will have shipping and deliveries...... You may need a business license for any purpose in town and the municipal hall is the place to ask......
The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is currently licensed to practice law actively only in the State of Illinois, inactively in Florida. Responses are based solely on Illinois law unless stated otherwise.
You are to register with the State of Illinois and file sales taxes that you collect via your online sales. The Illinois Secretary of State website explains step by step your rights.
Good luck with your business
The short answer is if you are located within Illinois, you will need to register with the Illinois Department of Revenue (Form Reg-1) and you should be collecting sales taxes (at least on sales and deliveries made within Illinois) and filing sales tax returns (Form ST-1).
You are required to register your business with the Illinois Department of Revenue (and get an Illinois Business Tax identification number) if you "do business" in Illinois and sell products. "Doing business" means that you have an office and operate from the state, or have a place (i.e., a warehouse, factory, or other location) within the state where you store, produce and/or deliver your products.
The question of whether you need a business license is more complicated, since the rules and requirements depend on the municipality (city/village).
This answer is for informational purposes only and is not intended to be legal advice nor does it establish an attorney-client relationship. You should consult a local business lawyer to obtain legal advice that is tailored to your circumstances and facts. Good luck to you.