How to Start a Business in Chicago
Chicago is the largest startup ecosystem in the Midwest with particular strength in B2B SaaS, fintech, food tech, and logistics. The city benefits from Fortune 500 headquarters, a large talent pool, and significantly lower costs than coastal cities.
Startup ecosystem
Chicago's startup scene is centered in the West Loop, River North, and the 1871 innovation hub. The city has produced major startups including Grubhub, Groupon, Braintree, and Tempus. Strong enterprise sales culture makes it excellent for B2B startups selling to large companies headquartered here.
Key industries
- B2B SaaS
- Fintech
- Food and agriculture tech
- Logistics and supply chain
- Insurance tech
- Enterprise software
Resources for founders
- 1871 - Chicago's tech hub and incubator
- Techstars Chicago
- MATTER - health tech incubator
- Chicago Venture Summit
- Illinois SBDC
Cost of living
Moderate. Average rent for a 1-bedroom is $1,600-$2,200/month. Illinois has a flat state income tax. Overall, Chicago offers big-city resources at a fraction of SF or NYC costs.
Business regulations
Illinois has moderate business regulations. Chicago has additional city licensing requirements and taxes. The city has been investing in startup-friendly policies and tax incentives for tech companies. LLC formation through the Illinois Secretary of State.
Frequently asked questions
Related cities
Startup resources
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