Registration and Licensing
The Business Brokers Act of 1995 requires any person domiciled in the State of Illinois, received commission or other compensation from another person to procure a business or assist in the procurement of a business; negotiate offers, buy, sell, or otherwise deal in options on businesses, or assists or directs the procurement of prospects intended to result in the purchase, sale, exchange of a business; or advertises or represents him or herself as a business broker, must be registered as a business broker with the Illinois Secretary of State Securities Department, unless exempt under law.
The application for registration must be filed on Illinois Form BB01, Application for Registration as a Business Broker, along with Illinois Form BB10, Consent to Service of Process (if not incorporated or authorized to transact business in Illinois), the disclosure document required under Section 10-30(b) of the law, and the required filing fee. The business broker will be registered when the application is complete and accurate provided there are no statutory disqualifications.
Changes that render information on the application or disclosure document inaccurate must be reported to the Secretary of State within 10 business days after the change occurred. Registrants must file for renewal of registration annually.
- Filing Fee — $200, plus $50 for each person (if more than two) who is business brokering on behalf of the business brokerage firm
- Annual Renewal Fee — $200, plus $50 for each person (if more than two) who is business brokering on behalf of the firm
- Branch Office Fee — $20, if more than two branch offices in Illinois
- Annual Renewal Branch Office Fee — $20
Late fees are assessed if the required forms or fees are not filed or paid in a timely manner.
To search for a business broker or a business broker representative, please visit the Registration Search section.
Audit and Compliance
The most frequent problems encountered in registering as a business broker are questions regarding the disclosure statement required by Section 10-30 of the Business Brokers Act of 1995. This disclosure must be provided to every client unless the client qualifies for the exemption at Section 10-30.5. Examples of the disclosure required can be found at Section 10-30.5 of the Act. The Business Brokers Act of 1995 and the attendant rules can be found at this Web site.
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.