Illinois Business Formations Rooted In Personal Connections
Starting a new business is an exciting journey, but it is also fraught with potential pitfalls. Fortunately, Farrell, Hamilton & Julian, P.C., is here to help. Established in 1965, the firm has served Godfrey, Madison County and the surrounding metro area for over 60 years. With more than 60 years of combined experience, the firm’s business formation attorneys make the law accessible to you. This makes sure that you can form wise decisions about your soon-to-be business.
The First Steps To Success
Business formation involves several key steps to ensure your new venture is set up for success. A general overview involves:
- Selecting a structure: Decide whether an LLC, corporation or another structure best suits your needs.
- Registering your business name: Secure your business name by registering it with the appropriate authorities.
- Filing formation documents: Prepare and file the necessary documents with the state to officially form your business.
- Obtaining licenses and permits: Ensure you have all required licenses and permits to operate legally.
- Creating contracts: Develop contracts that outline roles, responsibilities and business operations.
Working with a business formations attorney can provide invaluable guidance during this time – a time in which a lot can go wrong. With the help of a business lawyer, you can focus on building your business with confidence.
Types Of Business Entities You Can Form In Illinois
Choosing the right business entity is a crucial step when you are working to establish a successful company in Illinois. The structure you select impacts taxation, liability and even operational flexibility.
Below are the primary business entity types that entrepreneurs can set up in Illinois.
Sole Proprietorship
A sole proprietorship is the simplest of all business structures, and is owned and operated by a single individual. It requires no formal registration beyond obtaining the necessary licenses and permits.
However, it is important to note that the owner of a sole proprietorship is personally liable for all business debts and obligations.
Partnership
Partnerships involve two or more individuals sharing business ownership and the involved responsibilities. There are two main types:
- General Partnership (GP): All partners share management duties and liability
- Limited Partnership (LP): Includes general partners, who manage the business, and limited partners, who invest but have restricted liability
Limited Liability Company (LLC)
An LLC combines the liability protection of a corporation with the operational flexibility of a partnership. Owners, known as members, are shielded from personal liability while benefiting from pass-through taxation. LLCs must file Articles of Organization with the Illinois Secretary of State.
Corporations
Corporations are separate legal entities with robust liability protection. However, they require more regulatory compliance. The two primary corporate types are:
- C Corporation: Subject to double taxation – corporate profits are taxed, and dividends to shareholders are also taxed.
- S Corporation: Avoids double taxation by passing income directly to shareholders, provided it meets IRS requirements.
Non-Profit Organizations
Non-profits operate for charitable, educational or social purposes rather than profit. They must register with the state and obtain tax-exempt status from the IRS. Illinois non-profits follow specific regulations to maintain compliance.
Selecting the right entity depends on factors like liability concerns, tax implications and long-term business goals. Consulting a business attorney can help ensure compliance and strategic alignment with your objectives.
How The Firm Can Help Your Business
The firm’s focus is on helping middle-sized businesses get started, from LLCs to corporations, family businesses and professional practices. No matter where you are in Illinois, the firm offers the guidance you need to navigate the business formation process smoothly. The firm offers a comprehensive range of services to support your business formation needs, including:
- Entity structure selection
- Drafting corporate contracts
- Ongoing legal support
Farrell, Hamilton & Julian strive to make the formation of your enterprise as seamless as possible. By tailoring their services to your specific needs, the attorneys draw from their experience to set your business up for success.
Start The Process Today With A Godfrey Business Formations Attorney
You can rely on the firm’s capable team to help you achieve your business formation goals. Reach out today at 618-208-0263 or send an email to schedule a consultation today.