Illinois Business Formation Services
Experienced Des Plaines and Hoffman Estates Business Formation Lawyer for Company Structure
When starting a business, you are making the choice to turn a dream into reality. It is an exciting step, but owners and entrepreneurs will have many decisions to make along the way regarding how to best develop and grow their companies. One issue every business will face is determining what type of business entity to choose, which must take into account what services or products your business will offer as well as the financial and legal protections your business will need.
Choosing the right entity and overall structure can give your business a solid foundation to thrive. However, choosing an entity type that leaves your business unprotected from disputes and lawsuits, or not updating your financial and corporate records as your business evolves, can be a recipe for business failure and may result in personal liability for business obligations.
Before you take steps to start or grow a business or franchise, it is essential that you have counsel from a business formation lawyer who can properly assess the current and potential future benefits that the right choice of entity will provide. Whether a business or franchise would benefit as a C or S corporation, general or limited partnership, traditional or series limited liability company or some other type of business entity, the services of an experienced business attorney at our Hoffman Estates and Des Plaines law offices can help establish a solid foundation for success and an entrepreneur’s peace of mind. Our Hoffman Estates attorneys are dedicated to client satisfaction as well as providing continued support to business owners throughout all stages of starting and growing their companies.
Business Formation Lawyer to Form and Change Entities
When starting a new business, owners must choose an entity type and business structure. Regardless of the business size or type of industry involved, the entity you form in Illinois and register in other states has important implications for how much liability you personally, as the business owner, will have. Other important issues related to your choice of business entity include taxation, ownership and control, and liability exposure for shareholders, directors, members and managers.
If you started a business and are unsure if the current entity type or structure is the best choice given your personal tax situation and the specific trade or industry in which your business is focused, or if you have an established business and have not revisited the structure to assess whether it still offers the best protections for you and your business, a business formation lawyer can help determine if restructuring or converting your current Illinois entity is in your best interest. Our Des Plaines lawyers understand that businesses are not static, which means your legal and business needs may change over time. If your business needs or objectives have changed, it may be time to revisit your entity type and structure to make any necessary changes.
What are Common Business Entity Types?
Our business formation attorneys help clients by reviewing their unique needs and goals to determine the type of entity and structure their businesses will benefit from the most. Following are the three main types of business entities in our corporate formation practice:
Corporation – A corporation is legally separate from the owners (shareholders) and has its own tax structure. Typically, a corporate entity will be either a C corporation or S corporation depending on the number and type of shareholders and the owners’ personal tax situation. A corporation offers limited liability protection for owners if key corporate formalities are observed, such as maintaining separate accounts and books of record for personal and corporate funds, and routinely updating a corporate records book to document significant events and transactions in the life of the corporation. Courts have held that corporations may not enjoy the benefit of limited liability for shareholders if the corporate records are not kept up to date.
Limited Liability Company (LLC) – LLCs are like corporations in that there is less personal liability for owners when it comes to business debts and other obligations. Owners have the option of forming a traditional or series LLC under the Illinois Limited Liability Company Act, which offers additional flexibility in the business structure and the potential for some cost savings.
- Partnership – A partnership is a type of business entity formed between two or more individuals who typically share management, profits and losses according to the terms of a written agreement. In a general partnership, each partner is liable for the debts, liabilities and actions of other business partners. A limited partnership is an alternative to a general partnership, wherein one or more of the partners (“limited partners”) are not responsible for managing the business and are liable only to the extent of their personal investments.
Our business law firm can also advise concerning other entity options including nonprofit organizations and sole proprietorships.
Contact a Business Formation Lawyer in Des Plaines and Hoffman Estates Illinois
Talking to a business formation lawyer can help you clear up any questions you may have about Illinois business formation, entity selection, tax structures and other issues related to starting or restructuring a business, organization or franchise. If you need assistance with forming a sole proprietorship in Illinois, starting a medical or professional service corporation, registering your Illinois entity to conduct business in another state or choosing the correct business entity to create or convert to, talk to our Des Plaines business attorneys who are ready to help you make informed business decisions.
At a time when you need to plan carefully for the future success of your business, the Hoffman Estates business lawyers at Pluymert, MacDonald, Hargrove & Lee, Ltd. can provide experienced guidance. Contact our law offices today to speak with a business formation lawyer at (847) 310-0025.