Opening a Convenience Store in Illinois: Licenses & Permits

In Illinois the town decides first. Your local liquor commissioner (the mayor, village president or county board chair) sets the license classes, how many there are and what they cost, and the local license must be in hand before the state will license you. On the fuel side, the State Fire Marshal permits the tanks. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: the State Fire Marshal

The Office of the State Fire Marshal's Division of Petroleum and Chemical Safety regulates tanks, and Illinois EPA reviews cleanup costs:

• Permit: an OSFM permit is required for every tank installation, removal, repair, upgrade or relining (41 Ill. Adm. Code 175). The OSFM-licensed contractor applies. OSFM says 95% of permits are processed in under 20 days, and permits last six months. Replacing a dispenser needs no permit unless the piping at or below the shear valve changes.
• Registration: the owner must register new or replacement tanks with OSFM before installation (430 ILCS 15/4). Changes are reported within 30 days.
• Operators: Class A and B operators train within 30 days of taking the role, and Class C before handling emergencies. A tank may never operate without all three.
• Cleanup fund: the UST Fund covers cleanups. OSFM decides eligibility and the deductible, and Illinois EPA pays. For costs from January 1, 2026, deductibles are capped at $10,000 (Public Act 104-291).
• Coming in 2028: from October 13, 2028, containment sumps must be installed where none exist and kept clean and dry.

Alcohol: local license first

Illinois licenses alcohol in two layers:

1. Local license: issued by the local liquor control commissioner, who is the mayor or village president, or the county board chair in unincorporated areas (235 ILCS 5/4-2). Local governments set license classes, the number of licenses and the fees.
2. State retailer license: apply to the Illinois Liquor Control Commission through MyTax Illinois with your local license details. The state fee is $750 initially, or $600 to renew online.

Spirits: the state retailer license covers all alcoholic liquor, so state law allows spirits. Local ordinances may restrict them.

Dry areas: precincts and townships can vote themselves dry through local option elections.

Distance: no retail license may be issued within 100 feet of a church, school, hospital, home for the aged or for veterans, or military station (235 ILCS 5/6-11). Restaurants and food shops where alcohol isn't the main business are exempt, except in municipalities over 500,000 people (Chicago) or where a local ordinance applies the rule.

Tobacco and vapor

The Illinois Department of Revenue issues the Cigarette and Tobacco Products Retailer license through MyTax Illinois. You need it even for vape-only sales. The fee is $150 per location per year for filings from July 1, 2025.

From November 12, 2026, the Illinois Hemp Act bars retail sale of vapes containing hemp.

Food service: the local health department

Food permits come from your local health department. Under the Illinois Food Code (77 Ill. Adm. Code 750), local departments do plan review and a pre-opening inspection for new or extensively remodeled food establishments. Lead times and fees are set locally, so ask early.

Sales tax, fuel pumps and lottery

• Sales tax: register through MyTax Illinois (Form REG-1) for a Certificate of Registration, with a sub-certificate for each location. There is no fee. The 1% state grocery tax ended January 1, 2026, but more than 600 cities and counties now charge a local 1%.
• Fuel pumps: the Illinois Department of Agriculture makes unannounced inspections of fuel dispensers, and anyone servicing devices must be registered.
• Lottery: the Illinois Lottery requires an operating business, a State Police background check on each principal and a separate lottery bank account.

What this means for your store design

• Read the local liquor ordinance before you buy the site. It decides whether you can sell alcohol at all, which license class you can get and whether spirits are allowed. That sets the size of the cooler wall, any beer cave and liquor shelving. See choosing a location.
• In Chicago, measure to churches and schools. The 100-foot food-shop exemption doesn't apply there.
• Put containment sumps in new builds now. They'll be required from 2028, and adding them later means breaking concrete.
• Plan for the OSFM permit timeline. Permits and tank registration come before installation, so file them as soon as the fuel layout is set.

Local approvals

Your city, village or county also controls zoning, building permits, fire inspections, signs and the local liquor license. Our construction checklist covers the local steps.

For Illinois store design, see convenience store design in Illinois and walk-in cooler services in Illinois.

Sources

• Illinois Office of the State Fire Marshal, Division of Petroleum and Chemical Safety, FAQs and 41 Ill. Adm. Code 175 and 176; 430 ILCS 15/4.
• Illinois EPA, upcoming changes to the LUST program (Public Act 104-291).
• Illinois Liquor Control Act, 235 ILCS 5/4-1, 4-2, 5-1, 5-3, 6-11 and 7-1.
• Illinois Department of Revenue, tobacco retailer bulletin FY 2025-31, compliance alert CA 2026-02, Publication 113 and grocery tax bulletin FY 2026-03.
• Illinois Department of Public Health, Illinois Food Code (77 Ill. Adm. Code 750).
• Illinois Department of Agriculture, weights and measures program.
• Illinois Lottery, retailer opportunities.

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.