Only the pandemic has hurt business startup and sustainability in Chicago more over the past decade. Maybe Mayor Brandon Johnson should stop treating businesses like the enemy?
Business license approvals in Chicago for new and existing businesses fell to their second lowest level in the last decade, barely beating the city’s worst year at the start of the COVID-19 pandemic.
And the numbers were worse for businesses willing to continue: the 22,558 renewals were the lowest in a decade.
A total of 29,425 new or renewed business licenses were approved in the last 12 months through October, according to the city. data. That’s just seven more licenses than the city certified between November 2019 and October 2020, when early COVID-19 mitigation measures closed nonessential businesses.
Chicago leaders approved 1,449 fewer business licenses between November 2023 and October 2024 compared to the same period a year ago.
This short-term decline follows a broader trend of gradual declines in approvals. Over the past decade, Chicago has seen nearly one in five businesses disappear.
Licenses to do business in the City of Chicago generally must be renewed every two years and may require on-site inspections, zoning reviews and even criminal background checks.
The application fee for a limited business license, the most common license issued by the city last year, was $250. However, these costs can reach $6,600 for some licenses.
Very conservative estimates place revenue generated from Chicago’s approved business license application fees at more than $21.2 million during the 12-month period.
Chicago businesses already pay the second-highest corporate income tax rate in the country. They also pay the second highest amount commercial property taxes in the United States
This is in addition to seventh highest combined state and local sales tax rate and one of the highest punitive unemployment insurance tax structures of the country by operating in Illinois.
Chicago leaders must make it easier for entrepreneurs and existing businesses to compete in the Windy City, otherwise they risk those employers moving their jobs and tax dollars to more competitive places, like Boeing, Caterpillar and Tyson have already done it.