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Private Business and Vocational Schools Act in Illinois

The Illinois Private Business and Vocational Schools Act explained for foreign-owned and cross-border owners: what IBHE oversees, the permit and recent changes.

Last reviewed October 27, 2026 · 3 min read · General information, not legal advice

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Illinois oversees privately run schools that charge tuition for career and skills training through the Illinois Board of Higher Education (IBHE), under the Private Business and Vocational Schools Act of 2012 (105 ILCS 426). This page is for owners of U.S. businesses with ties to Canada or India. Whether the Act applies to any given business is a legal question. This page reports what the statute and IBHE say; it does not decide coverage and is not legal advice.

Slide show: Seven slides on the Private Business and Vocational Schools Act

  1. What it is

    Illinois law for privately run schools that charge tuition to prepare people for jobs and skills.

  2. Who it affects

    A person subject to the Act. Whether it fits a given business is a legal question.

  3. The rule

    An IBHE permit of approval is required before a school is established and operated.

  4. The number

    IBHE's 2017 rule sets permit fees from $1,000 to $5,000, depending on school size.

  5. The deadline

    Renewals are due April 25 or June 25. IBHE accepts no filing more than 30 days late.

  6. The penalty

    A cease-and-desist order and up to $10,000 per violation.

  7. The tip

    Ask IBHE early. Before the permit issues, advertising or soliciting students needs IBHE authorization.

Who does the Private Business and Vocational Schools Act cover?

QuestionAnswer from the text
Who needs a permit?A person or group of persons subject to the Act needs one to set up and run a private business and vocational school, or to create a course to sell to one (Section 20).
What is a "school"?A privately owned or operated institution offering courses for tuition, on site, by correspondence, by distance education or otherwise, to prepare people for a trade, for a non-professional occupation or for a profession that is not subject to state licensing, or to improve occupational skills (Section 15).
Are there exemptions?Nine, each with conditions (Section 30), such as institutions devoted entirely to religion or theology. IBHE says an institution that believes it qualifies applies, and an analyst approves or denies.

What it means for a foreign-owned or cross-border business

SituationWhat the law saysWhat to check
Owner lives in Canada or India and plans an Illinois schoolApproval criteria include good-character owners with no felony record (Section 35).Ask IBHE what it requires from owners abroad.
Courses delivered online across bordersThe definition lists distance education as a delivery method (Section 15); Section 30 exemptions carry conditions.Whether the Act fits is a legal question for IBHE or an attorney.
Foreign parent funds the schoolApproval looks at adequate finances, and a continuous surety bond covering prepaid unearned tuition is required.Ask IBHE what finance evidence and bond it accepts.
Paying IBHE feesIBHE's rule lists payment by check, certified check, cashier's check or money order.Ask IBHE about payment from abroad.

The rules and checklist page covers fees, renewal dates, recent changes and the Fox Valley Permit-Question Roster. Some violations are also unlawful practices under the Consumer Fraud Act.

See also our guides to starting a business in Illinois, local licenses and permits, foreign-owned LLCs and EINs and bank accounts for foreign founders.

Official sources

This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.