Farrell, Hamilton & Julian, P.C.Farrell, Hamilton & Julian, P.C.2026-06-08T17:18:56Zhttps://www.fhhjpc.com/feed/atom/WordPress/wp-content/uploads/sites/1104094/2024/11/cropped-FHJ-site-icon-32x32.pngOn Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Does an LLC or a corporation offer better startup tax protection?]]>https://www.fhhjpc.com/?p=502852026-05-20T14:00:58Z2026-05-19T18:55:06ZLLCs are popular for a reason
The profits generated by an LLC are subject to the 15.3% self-employment tax rate for Social Security and Medicare. However, they are relatively straightforward to form and are therefore beneficial for people who haven't yet begun operating the business and who anticipate a long grind before the company is in the black. Income tax returns for LLCs are generally simpler than those for corporations. Further, they don’t have the same payroll and reporting obligations as a corporation might.
Many people choose to create an LLC but elect S-corporation status for tax purposes. This solution allows them to divide income into a reasonable salary that they pay tax on as an individual and shareholder distributions, which are not subject to self-employment taxes.
The pass-through earnings are also subject to an Illinois individual income tax rate of 4.95%. Some companies may benefit from this structure. However, they may face a long-term limitation if they want to take the company public. S-corporations generally can only have 100 shareholders, and those shareholders must be residents or citizens of the United States.
Creating a C-corporation can be beneficial in cases where the goal is to either eventually have an initial public offering (IPO) or raise venture capital. C-corporations are subject to a 7% corporate tax rate in Illinois. They are subject to a flat federal corporate tax rate of 21% on all taxable income. Shareholders must also pay income tax on any dividends that they receive.
Every business plan requires a slightly different approach to tax minimization and optimal founder protection. Working closely with a business law attorney can help those hoping to start a company in Illinois choose the best option given their current circumstances and long-term goals.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[5 mistakes to avoid in the first 24 hours after being served in Illinois]]>https://www.fhhjpc.com/?p=502702026-03-30T14:14:41Z2026-03-30T12:57:33ZIgnoring the papers and “hoping it goes away”
You might feel tempted to set the documents aside and deal with them later, but that decision can move the case forward without you. Illinois courts set strict response deadlines. Once those pass, the other side can ask for a default judgment. When that happens, you lose your chance to defend yourself on the merits.
Contacting the person suing you directly
Reaching out might feel like the fastest way to clear things up, but direct contact often creates more problems than it solves. Anything you say can be used against you, even if you believe you’re just explaining your side. Early conversations without legal guidance can lock you into statements that become difficult to walk back later.
Deleting “bad” emails, texts or documents
It’s natural to want to clean things up, especially if certain messages feel damaging. In the legal world, this is called spoliation of evidence, and it can seriously hurt your position. Courts can impose penalties, limit your defenses or assume the missing information would have worked against you. Preserving everything, even the uncomfortable pieces, protects your ability to respond properly.
Posting about the lawsuit on social media
Sharing your frustration online might feel harmless, but posts have a way of resurfacing in court. Even casual comments, jokes or vague references can be taken out of context and used to challenge your credibility. Once something goes public, you lose control over how it gets interpreted.
Waiting until monday to look for a lawyer
If you get served on a Friday afternoon, waiting until Monday morning can cost you valuable time. Many Illinois attorneys offer 24/7 intake or online scheduling, which means you can start getting guidance immediately. Early action gives your attorney more room to assess the situation, preserve evidence and plan your response.
Take control early
The first 24 hours can either protect your position or quietly weaken it. A quick conversation with the right attorney can help you understand what matters, what to preserve and what to do next. It feels heavy at first, but a few smart decisions early on can take a lot of that pressure off your shoulders. Contact us today at 618-208-0263]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[What is an estate bank account and how to open one in Illinois?]]>https://www.fhhjpc.com/?p=502672026-03-13T13:33:14Z2026-03-13T13:33:14ZWhat is an estate account?
An estate account is a bank account you open in the name of a deceased person’s estate. Instead of using the person’s personal accounts, you deposit estate funds into this new account and use it to handle estate-related transactions.
Money that belonged to the deceased, such as final paychecks, refunds or proceeds from asset sales, may be deposited into the estate account. Expenses tied to the estate, including debts, taxes or administrative costs, are typically paid from this account as well.
How to open an estate bank account in Illinois
Opening an estate bank account usually requires several documents that confirm both the death and your authority to manage the estate. Most banks will ask for a certified death certificate, the deceased person’s Social Security number and an Employer Identification Number (EIN) for the estate.
You will also need paperwork showing that you are the executor or administrator of the estate. Once the account is created, you can deposit estate funds and use the account to handle financial obligations during the probate process.
Why open an estate bank account in Illinois?
An estate account helps keep the estate’s finances separate from your personal finances. This separation creates a clear record of money coming in and going out of the estate.
Keeping estate transactions in one place also makes it easier for you to track payments to creditors, taxes owed and distributions to beneficiaries. In many cases, having a dedicated estate account simplifies the financial side of probate and helps ensure the estate is handled properly.
Are you managing an estate?
Handling a loved one’s estate can involve legal and financial responsibilities that are not always obvious at first. If you have questions about managing estate assets or the probate process in Illinois, speaking with a probate attorney can help you understand the steps involved and avoid common mistakes. Having the right support can make the process far less overwhelming.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Which business structure is right for you: LLC vs Corporation]]>https://www.fhhjpc.com/?p=502102025-12-10T13:59:52Z2025-12-10T13:59:52ZChoosing the right business structure can feel like a big decision. Your choice affects taxes, personal liability, how you run your business and future growth.
If you are starting a business in Illinois, it helps to understand the differences between a limited liability company (LLC) and a corporation. This knowledge can help you protect your interests and set your business up for success.
Understanding the basics of LLCs and corporations
Before you weigh your options, it helps to review LLC and corporation formation to understand the differences and requirements for each structure.An LLC offers flexibility and simplicity. It protects your personal assets from business debts while allowing profits and losses to pass directly to your personal tax return. Corporations, by contrast, provide stronger protections against personal liability but come with more formal requirements, like annual meetings and detailed record-keeping. You can review official Illinois business resources to understand requirements and procedures for forming your LLC or corporation.
Key factors to consider
When choosing between an LLC and a corporation, keep these points in mind:
Liability protection: Both protect your personal assets. Corporations usually offer stronger legal protection in complex cases.
Taxation: LLC profits usually go straight to your personal taxes. Corporations may face double taxation unless you pick an S-corp status.
Management and control: LLCs are flexible in how they are managed. Corporations have a formal board and required officer roles.
Startup costs and paperwork: Corporations often cost more to start and have more ongoing compliance rules.
Investor appeal: Corporations can sell shares, which can make it easier to attract investors.
Considering these factors now can save problems later. They also affect how your business runs day-to-day and how it grows over time.
Making your choice work for you
There is no single answer that works for everyone. Choose a structure that fits your goals and growth plans. Your decision will shape how your business handles risk, manages resources, and prepares for the future.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Why estate planning matters for young families in Illinois]]>https://www.fhhjpc.com/?p=501682025-07-16T14:10:43Z2025-07-16T10:25:54ZWhen you’re raising children, your days are packed with work, school and daily routines. But it’s just as important to plan for your kids’ future. If something unexpected happened tomorrow, who would care for your children? And would it be someone you trust? Creating an estate plan now gives your family security and peace of mind.
Protect your children’s future
If both parents pass away, the court decides who will raise your children. That decision may not reflect your values. By naming a guardian in your will, you choose someone you trust to care for them.You will also need to decide who will manage your finances as your children grow.
Why choosing a financial decision-maker matters
Choosing who handles your money is just as important as naming a guardian. Without a plan, the court may appoint someone you would not choose. You can prevent that by taking these steps:
Name a guardian: Choose someone you trust to raise your children
Set up a trust: Create a structure to manage and distribute your assets according to your wishes
Assign power of attorney: Give someone the authority to oversee your finances if you become incapacitated
Choose a trustee: Appoint a trusted person to manage long-term financial decisions for your family
These steps protect your children, reduce legal risks and make sure your wishes are followed. A solid plan also reduces stress and makes things easier for your family when you aren't there to help.
Why you should avoid family conflict later
Without clear instructions, relatives may argue about your medical care or finances. Conflict can delay decisions and add stress. A detailed plan prevents confusion and eases pressure on your family.
Give your family legal protection and peace of mind
Many assume close family members can automatically step in, but that is not always true. The law does not guarantee anyone the right to act. Your estate plan fills those gaps and helps keep your family safeguarded.Estate planning isn't just for the wealthy. It's for families who want to make thoughtful, responsible choices. Consider consulting with a local estate planning lawyer, as they may help you understand your options and build a plan that fits your family’s needs.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Why would someone contest a will?]]>https://www.fhhjpc.com/?p=501222025-03-14T23:07:09Z2025-03-14T23:07:09Zcontest these wills, raising the question: why challenge a will? Here are some key reasons why someone might contest a will.
Minimum age requirement
A requirement for creating a valid will is the testator's age. In most jurisdictions, a person must be at least 18 to draft a legally binding will. If someone under this age creates a will, it is considered invalid unless specific exceptions apply, such as for married minors or those in military service. Contesting a will on this ground involves questioning the testator's legal capacity at the time the will was made.
Witness requirements
A valid will requires the testator to sign it in the presence of at least two witnesses who have no stake in the will. These witnesses ensure the testator's signature's authenticity and confirm the absence of undue pressure. Problems arise when witnesses are beneficiaries, presenting a conflict of interest that can compromise the will's validity. An interested witness might lose their inheritance under the will, providing grounds for a contest.
Fraud and forgery
Fraud and forgery are serious allegations in the context of wills. Fraud occurs when someone deceives the testator into signing a will or including specific provisions under false pretenses. Forgery involves the unauthorized signing or creation of a will by someone other than the testator. Both situations undermine the document's authenticity and are substantial grounds for contestation. Proving fraud or forgery can be complex but essential to ensuring the testator's true intentions are honored.
Undue Influence
Undue influence occurs when someone applies excessive pressure on the person making a will, leading them to add provisions they would not have selected on their own. This is particularly common among vulnerable individuals, such as older adults or those with mental impairments, who may be susceptible to manipulation. Contesting a will on the grounds of undue influence involves demonstrating that the testator's free will was compromised, impacting the fairness and validity of the document.
Lack of Capacity
For a will to be valid, the testator must have the mental capacity to understand the nature of their actions when creating the document. This means they should comprehend the extent of their estate, the natural heirs, and the distribution plan outlined in the will. If a testator is found to lack this capacity due to mental illness, intoxication, or other impairments, the will may be contested. Establishing a lack of capacity requires evidence of the testator's mental state at the time of the will's creation.
Contesting a will is a serious legal action that challenges the validity of one of the most personal documents a person can create. If you find yourself in a situation where a will must be contested, it is essential to seek professional guidance. At Farrell, Hamilton & Julian, P.C., our probate litigation attorneys are ready to assist you in navigating these complex matters.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Having Difficulty Contacting the IRS to Resolve an Issue?]]>https://www.fhhjpc.com/?p=501202025-02-22T01:40:50Z2025-02-22T01:40:50ZIRS customer service phone lines have been notoriously understaffed for a long time. That problem was exacerbated roughly five years ago for obvious reasons.
Things could be getting even worse this year
Understaffing issues are bound to get worse very soon. Upcoming layoffs of thousands of IRS employees in the middle of tax season have been reported. This comes as part of the Trump administration’s massive downsizing of the federal workforce. It remains to be seen just how many people will be laid off, when and from what areas of the IRS.
Although answers to some common questions and concerns are available on the IRS website, these can be of little or no help if you’re calling about a specific notice regarding a past return, money owed or an audit.
Don’t try to navigate the IRS on your own
The lack of personnel and the difficulty in reaching someone who can help are among the many reasons why working with an experienced tax attorney can help if you have concerns. If the issue is something that can be resolved fairly easily, they can maneuver the behemoth agency and discuss the matter with someone who can actually help. If it’s a serious matter that needs resolution, having this experienced guidance can help you protect your rights and prevent things from getting worse while it’s being resolved.
Whatever your tax issue, if you’re not able to resolve it with the IRS, getting sound legal guidance can help you get this overwhelming weight off your shoulders and give you peace of mind that your tax issues are in good hands. Whether it’s your business or personal taxes, you deserve a chance to resolve a dispute when you make a good faith effort to do so. Reach out today for experienced tax dispute resolution assistance to get started.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[BOI reporting is still on hold]]>https://www.fhhjpc.com/?p=501182025-02-04T21:33:33Z2025-02-04T21:33:33Zis on hold due to ongoing legal proceedings. A federal court order has suspended the requirement for businesses to file BOI reports with the Financial Crimes Enforcement Network (FinCEN). This means that reporting companies need not submit their beneficial ownership information and are not subject to liability for failing to do so while the order remains in effect.
Why was it created?
The creation of Business Ownership Information (BOI) reporting aimed to enhance transparency and combat financial crimes. The main reasons include:
Preventing money laundering and terrorism financing: By requiring businesses to disclose their beneficial owners, authorities can better track and stop illicit financial activities.
Increasing corporate transparency: BOI reporting helps ensure that the actual owners of companies are known, reducing the risk of anonymous shell companies used for illegal purposes.
Strengthening regulatory compliance: It aligns with global standards and commitments to improve financial integrity and accountability.
Facilitating law enforcement: Access to beneficial ownership information aids law enforcement agencies in their investigations and enforcement actions.
Courts are wrestling with its constitutionality
The constitutional concerns regarding Business Ownership Information (BOI) reporting primarily revolve around privacy and due process rights. Critics argue that the Corporate Transparency Act (CTA) infringes on individuals' privacy by mandating the disclosure of personal information about beneficial owners without sufficient safeguards. Additionally, there are concerns that the reporting requirements impose undue burdens on small businesses, potentially violating their due process rights under the Constitution. These issues have led to legal challenges and the temporary suspension of the reporting requirements.
What the suspension means
The suspension of Business Ownership Information (BOI) reporting has several implications for businesses:
Temporary relief: Businesses, especially small ones, are relieved from the immediate burden of complying with BOI reporting requirements. This means they need not allocate resources to gather and submit beneficial ownership information for now.
Legal uncertainty: The ongoing legal proceedings create uncertainty. Businesses need to stay informed about potential changes in the requirements, as future court rulings could reinstate the reporting obligations.
Potential penalties: If the reporting requirements are reinstated, businesses that haven't complied might face fines. It's generally advised that companies prepare to meet the requirements if and when they are enforced again.
Operational impact: The suspension might cause operational disruptions for businesses that had already started preparing for compliance. They may need to adjust their plans and processes based on the evolving legal landscape.
Others will be affected in different ways.
Voluntary reporting may be beneficial
Voluntary reporting of Business Ownership Information (BOI) can enhance a company's reputation by demonstrating transparency and a commitment to compliance. It can build trust with stakeholders, including investors, customers, and regulators. Additionally, it prepares businesses for potential future requirements, reducing the risk of non-compliance penalties if the courts reinstate mandatory reporting. Voluntary reporting can also streamline internal processes by establishing robust data management practices. Overall, it positions businesses as proactive and responsible entities in the eyes of the market and regulatory bodies.
Some are following this story
Those unsure what to do can contact a business law attorney to discuss a strategy that will work best for their company, whether it is voluntarily reporting, waiting to see what happens next or doing something else.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Do cryptocurrency transactions get taxed?]]>https://www.fhhjpc.com/?p=492332024-10-10T15:28:00Z2024-10-10T15:28:00ZDoes the IRS impose a tax on crypto?
The short answer is yes. The IRS treats cryptocurrencies as property, like stocks or real estate. Because of this treatment, any cryptocurrency transaction can trigger a taxable event. These can include the following:
Selling cryptocurrency: If you sell your cryptocurrency for more than you paid for it, you have a capital gain, which is taxable. Selling it for less can offset other gains.
Trading cryptocurrency: The IRS requires reporting the fair market value of a cryptocurrency at the time of the trade.
Using cryptocurrency for purchases: You must report the transaction when you use cryptocurrency to buy goods or services. The difference between the purchase price and the value of your crypto at the time of the transaction can be considered capital gain or loss.
Crypto as payment: If you receive cryptocurrency as payment for goods or services, it is considered income. In other words, it can get taxed and must be reported at its fair market value at the time of receipt.
These are just some of the many other ways that your cryptocurrency can get taxed. So, understand your tax obligations to avoid surprises come tax season. Keep a detailed record of all your transactions and consider consulting with a tax professional to ensure you won’t get any penalties.]]>On Behalf of Farrell, Hamilton & Julian, P.C.<![CDATA[Does your online business need a physical location?]]>https://www.fhhjpc.com/?p=492232024-10-04T12:34:08Z2024-10-04T12:34:08ZUsing your home address
Registering your home address as your business address can make it easier to receive mail, products or business supplies. However, doing this can mix your personal and business affairs. Since business registration details are public, using your home address may also expose you to a greater risk of identity theft or fraud.
Moreover, zoning laws may prohibit home-based businesses even if you only conduct online operations. If you register your online company as an LLC using your home address, you may still open yourself up to complaints or other issues.
Using a post office box
You may use a post office or P.O. box as your business address. It’s a great option for online small businesses, especially if you won’t have in-person meetings with your clients.
A P.O. box allows you to separate your personal and business mail. However, it may limit the type or size of packages you can receive. More importantly, Illinois doesn’t accept P.O. box addresses for LLC business registrations.
Using a virtual address
Virtual addresses work like a P.O. box. These are real street addresses you can lease and essentially use as a larger mailbox. One advantage you get is a more professional image since many virtual addresses are in better locations, like a business district or commercial area.
Virtual address services usually include mail scanning and forwarding. Some virtual addresses may also offer more robust features and operate more like virtual offices.
Choose based on your business needs
The physical address you use for your business may affect your registration and the image of your online business. Seeking guidance from an experienced legal professional may help you choose the most appropriate physical address option. They can also help you navigate other concerns to ensure smooth business registration and operations.]]>