University of Illinois System
Policies & Procedures

1.5 Conducting Business Outside the State of Illinois

Policy Statement

Units conducting business outside the State of Illinois must abide by the relevant laws, which are state or country specific.

Reason for the Policy

Units may need to conduct business outside the State of Illinois.

Applicability of the Policy

Conducting business outside the State of Illinois may include, but is not limited to, opening new locations, allowing employees to work remotely (even if on a temporary basis), off-site teaching and research activities, and internet sales.


Before moving forward with any proposal to conduct business outside the State of Illinois, consult the units below to ensure that the University of Illinois System complies with the applicable laws.

  1. Office of University Counsel determines the applicable legal requirements. They may find it necessary to obtain the assistance of local legal counsel to interpret these laws, at the unit's expense

    University Counsel contacts:
    Chicago 312-996-7762
    Springfield 217-206-7796
    Urbana-Champaign 217-333-0560
  2. Tax Compliance and Analysis ensures compliance with tax and other related business laws. They assist with registration requirements for employment tax, sales tax, and other applicable tax obligations. They also obtain sales and use tax exemptions in other states and coordinate foreign tax issues.

    Tax Compliance and Analysis contact:

    Related policy: 18.16 Implications of Conducting Business Outside the State of Illinois
  3. Contract Offices develop contracts for units wanting to provide goods or services to other parties. Do not provide goods or perform services until the required contracts have been fully executed.

    Related policy: 19 Contracts
  4. Purchasing Divisions secure any services and goods, including services of an independent contractor or housing and office space. Do not begin any work until the required contracts have been fully executed.

    University Purchasing contacts:
    Chicago 312-996-7084
    Springfield 217-206-6651
    Urbana-Champaign 217-333-3505
    System Purchasing & Support Services (for system-level offices) 217-333-9289

    Related policy: 19 Contracts
  5. System or university human resources (HR) offices provide guidance before beginning any search, recruitment effort, or hiring. HR will also determine impacts on bargaining units. Contact HR before using the services of a system employee. Do not begin any work until HR ensures that appropriate employment documents are completed. Refer to 17.2 Classification of Independent Contractors Versus Employees to determine the proper worker classification.

    Human Resources contacts:
    System Human Resource Services (SHRS)
    Main Line 217-333-2590
    Chicago 312-996-5130
    Urbana-Champaign 217-333-2600
    University Equal Opportunity 217-333-7925
  6. University Payroll and Benefits (UPB) ensures that relevant employment taxes are properly withheld.

    Withholding and documentation requirements in each state and country are unique. Employees working in another state must complete a Form W-4 or withholding statement for that state and a certificate of non-residence in Illinois or a Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois. UPB works with employees to collect the required documentation. UPB makes tax deposits and reports withholdings and earnings based on state requirements.

    University Payroll and Benefits contacts:
    Chicago 312-996-7200 (Phone Number requires dialing all 10-digits)
    Springfield 217-206-7144
    Urbana-Champaign 217-265-6363
  7. Cash Management (CM) establishes all banking relationships and should be consulted before banking outside of the United States. CM determines the best strategy to navigate the complexities of foreign banking laws. All banking relationships are opened through CM. Also, CM obtains the signature of the CFO and Board approval, if necessary.

    Cash Management contacts:

    Related policies: 14.2 Open or Close a University Bank Account and 14.4 Manage Foreign Bank Accounts
  8. University Risk Management assesses risk management issues and determines whether
    insurance coverage is required. Inform Risk Management if leased space is needed. Inform Risk Management if any system vehicles will be used for system business, as special insurance may be required. There may be additional issues to consider when employees live and work outside the United States, such as workers' compensation and medical evacuation and repatriation insurance. Several states and foreign countries do not accept the system's workers' compensation self-insurance plan, requiring the purchase of commercial workers' compensation insurance.

    Risk Management contact:
  9. Real Estate Services (RES) processes transactions including leases, licenses, easements, acquisitions, and dispositions on behalf of the Board of Trustees and should be consulted at least six months in advance of needing off campus leased space. Space needs assessments are performed by each university in conjunction with Facilities and Services and/or the Office of the Provost.

    Real estate transactions including leases, licenses, easements, acquisitions, and dispositions must be processed by RES on behalf of the Board of Trustees.

    Real Estate Services contacts:
    Chicago 312-996-2949
    Springfield / Urbana-Champaign / System Offices 217-244-4483
  10. Contact the appropriate Export Control Compliance university office for review and approval if university property and software will be used outside the United States. Approval needs to be obtained before allowing employees to travel with university equipment.

    Office of the Vice Chancellor for Research, Office of Research Integrity, Export Controls 312-413-8191,
    Export Controls & International Travel five-minute video

    Office of the Associate Vice Chancellor for Research and Innovation, Office of Research and Sponsored Programs, 217-206-7409,

    Office of the Vice Chancellor for Research & Innovation, Sponsored Programs Administration, Export Controls 217-300-5943,
    International Travel & Export Controls five-minute video

For additional information, refer to 18.16 Implications of Conducting Business Outside the State of Illinois.

Last Updated: July 13, 2021 | Approved: Vice President, Chief Financial Officer and Comptroller | Effective: July 2021