What Do I Need to Know About Starting a Business In Illinois?
Starting your own business can be a dream come true for many people. The thought of being your own boss can be motivating, exciting, and intimidating all at the same time. Your business idea may be to create a certain product or service. However, before you launch your new venture, it is important to consider what type of business entity is best for your company. For example, the specific kind of business or corporate structure can influence its tax implications. The most appropriate choice of entity for your company may depend on your specific needs and objectives. In addition, you can have state and federal regulations that must be followed depending on where you live. Regardless of what kind of business you are forming, it is imperative that you seek professional legal counsel to protect your livelihood.
Types of Business Structures
There are many steps to launching a business, which can seem overwhelming at first. Once you have an idea in mind, it is time to think about your business structure and create a business plan. A few of the main types of business entities are:
- Limited Liability Company (LLC): The owners of an LLC are called members, which may include individuals, corporations, other LLCs and foreign entities.
- Partnership: If two or more people agree to trade or do business, this is considered a partnership. Each party invests money, property, or labor while sharing in the responsibilities, profits, and losses of the business.
- Corporation: A corporation conducts business, realizes net income or loss, pays taxes, and distributes profits to shareholders. Incorporation means a company’s owners are protected in the event of a lawsuit.
- Sole Proprietorship: This type of business structure has one owner who may choose to be solely responsible for the management and day-to-day operations of the company. An advantage of sole proprietorship is that any income generated is only taxed once.
Fine Print Details
One of the main decisions before embarking on this endeavor of owning a business is finding a location for it. This may be influenced by whether or not you need a storefront if you are selling items such as clothes or jewelry or cupcakes, However, if you are starting a graphic design company, you might be able to work from home. In other cases, you might need a warehouse to store all of your products, especially if they are large items or require equipment to manufacture. In addition, you may need to figure out how to deliver your goods or services, whether they can be emailed, sent through the mail, or carried on a truck, airplane, or freight train.
An experienced business attorney can assist you with the process of formation, including filing any necessary documents with the Illinois Secretary of State. Legal paperwork may include permits, licenses, and insurance. Thinking about long-term plans or potential scenarios can alleviate problems down the road, such as when you are ready to retire and sell your business.
You may also need legal guidance with preparing official documents related to:
- Articles of incorporation
- Company stock certificates
- Bylaws, policies, statutes
- Operating agreements
- Mergers and acquisitions
- Succession plans
There is more to starting a business than just creating a product or service. In Illinois, business owners must follow the proper legal steps before they can open. At Prime Law Group, LLC, we represent all kinds of businesses in a variety of corporate transactions, including assisting with entity formation, complex corporate structuring, succession planning, and contract drafting. Our knowledgeable Woodstock business law attorneys have years of experience to assist you with your unique legal needs and interests. To learn more, call our office today at 815-338-2040 to schedule your private consultation.
September 16, 2020