There are many people with an entrepreneurial spirit who want to branch out on their own to start a new business. Being an entrepreneur can be very rewarding, but it also requires a lot of hard work. Illinois is home to many people who’ve had success in creating their own businesses. Those who wish to follow a similar path can benefit from understanding more about the legal side of starting a business.
Understand the basics
The first step in starting a new business is to choose the structure or proper business entity. Corporations, LLCs, sole proprietorships, and partnerships can be very different in terms of taxes, liability, and fundraising. It’s also essential to understand Illinois law to know what permits, licenses, and registrations are needed based on the type of business.
All businesses should know how to complete proper bookkeeping for tax and other purposes. This can be done in-house or outsourced. A business needs an EIN, or employer identification number, for tax and other financial purposes. It’s also important to understand how to classify employees and to purchase proper workers’ compensation coverage based on the size and type of business.
Seek legal advice
Many entrepreneurs have excellent ideas for their startups but find the legal side of starting a business to be stressful and overwhelming. Those who are interested in starting a new business can benefit from working with an Illinois attorney that has experience in business law. There are many legalities to be worked out when starting a new business and by working with an attorney, one can feel confident that they are making sound legal decisions.