Selling through a broker in Illinois: at a glance
Illinois rules that affect a business sale
| Topic | What the rule says | Source |
|---|---|---|
| Who may broker the sale | Illinois requires anyone in the business of business brokering to register with the Secretary of State's Securities Department under the Illinois Business Brokers Act of 1995 (815 ILCS 307), unless exempt (for example, an Illinois-licensed attorney whose role is incidental to legal practice). | Illinois Business Brokers Act of 1995 (815 ILCS 307), Illinois Secretary of State Securities Department - Business Brokers |
| State income tax on the gain | Illinois's top individual income tax rate is 4.95%, a flat rate for 2026 (Tax Foundation); unless noted below, capital gains are taxed as ordinary income. | Tax Foundation - 2026 State Individual Income Tax Rates and Brackets |
What business brokers charge
Main Street business brokers usually charge a success fee - a percentage of the sale price paid at closing - with a minimum fee; lower-middle-market M&A advisers often use tiered percentages and may charge an upfront retainer credited against the success fee. Few brokers publish their rates. Two that do: Empire Flippers (online businesses) charges 15% of the price up to $700,000, then 8% up to $5M and 2.5% above; Flippa charges a 10% success fee plus a listing fee. Use published schedules as a benchmark when you negotiate, and compare total cost if the deal does not close. See broker vs DIY for the fee math and our broker reviews.
How to vet a business broker in Illinois
- Check the license
Ask for their Illinois Business Brokers Act registration with the Secretary of State Securities Department.
- Ask for closed deals like yours
How many businesses in your industry and size range did they close in the last two years, and at what share of asking price?
- Get every fee in writing
Success-fee percentage, minimum fee, any upfront, valuation or marketing fee, and whether buyers you bring trigger the fee.
- Limit exclusivity and the tail
Listing term (6-12 months is common) and the tail period after it ends during which a sale still owes a fee.
- Know who does the work
The person who pitches you should be the person who runs your deal.
- Know your number first
Run the valuation calculator so you can judge whether a broker’s suggested price is a listing tactic.
City guides in Illinois
Selling a specific kind of business
Brokers and marketplaces you will run into
See what you would keep after Illinois tax
Asset vs stock structure, price allocation and state tax.
Want help finding a vetted business broker in Illinois?
Tell us about your business and what you need. We are building a list of vetted brokers and M&A advisers in Illinois and will follow up personally with next steps. No obligation.
Frequently asked questions
Do business brokers need a license in Illinois?
Illinois requires anyone in the business of business brokering to register with the Secretary of State’s Securities Department under the Illinois Business Brokers Act of 1995 (815 ILCS 307), unless exempt (for example, an Illinois-licensed attorney whose role is incidental to legal practice).
How much tax will I pay on the sale of my business in Illinois?
Illinois’s top individual income tax rate is 4.95%, a flat rate for 2026 (Tax Foundation); unless noted below, capital gains are taxed as ordinary income. Federal tax applies on top; model both with the after-tax proceeds calculator.
How much do business brokers charge?
Most charge a success fee as a percentage of the price with a minimum fee; few publish rates. Published examples: Empire Flippers 15% up to $700,000 (tiered down above that) and Flippa 10% plus a listing fee.
Can I sell my business without a broker in Illinois?
Yes. Owners can sell their own business; licensing rules apply to people who broker a sale for others. You will still want a transaction attorney and CPA. See broker vs DIY.
Sources
- Illinois Business Brokers Act of 1995 (815 ILCS 307) (accessed 2026-09-23)
- Illinois Secretary of State Securities Department - Business Brokers (accessed 2026-09-23)
- Tax Foundation - 2026 State Individual Income Tax Rates and Brackets (accessed 2026-09-23)
- Empire Flippers - Sell your online business (fees and requirements) (accessed 2026-09-23)
- Flippa - Pricing (accessed 2026-09-23)