How to Start a Business in Illinois with Lawyers

Starting a business in Illinois hosts many relevant issues that you need to take into consideration but which you may not be aware of: different tax advantages available to you, indemnification and covenant not to sue, federal, state and local filing requirements, name protection, choices of entity structure, available agreements and the importance of maintaining corporate and LLC company formalities and complete records. There are many different types of business entities; the main categories include corporations, limited liability companies, partnerships, and non-profits. We’ll go into detail about what you need to know of each one so that you can make an educated decision when starting a business in Illinois.

How to start a business in Illinois

Starting a business in Illinois is easy! First, you need to choose a business entity; here’s a brief description of the main structures:

Corporations

A corporation is a legal entity that is given certain powers by the state for tax advantages, tax deductions, liability and asset protection, anonymity, and potential for business and marketing frameworks. Entrepreneurs starting a business in Illinois as a corporation become directors that act as a kind of legislature, partake in the profits and losses, and decide on important business decisions periodically.

List of corporations you can form when starting a business in Illinois with Spiegel & Utrera, P.A.:

• Illinois For Profit Corporation $199.95
• Illinois Sub Chapter S Corporation $274.95
• Illinois Non Profit Corporation $274.95
• Illinois Non Profit 501 (a) Compliant Corporation $374.95
• Illinois Non Profit 501 (c)(3) Compliant Corporation $374.95
• Illinois Professional Service Corporation $264.95
• Illinois Interest Charge-Domestic Intl Sales Corp $674.90

Limited Liability Companies

The main advantage of starting a business in Illinois as an LLC is that it may not have the ownership restrictions imposed on a small business corporation (subchapter s corporation); a Illinois LLC can have 100 members or as few as one. The IRS will apply double-taxation if it has more than one member, or flow-through taxation if it has only one member. Its interests may get held by corporations, partnerships, non-resident aliens, trusts, pension plans, and charitable organizations in Illinois. All entrepreneurs that start a Illinois LLC become members gaining limited liability protection from all the debts and claims made against the business.

List of LLC’s you can form when starting a business in Illinois with Spiegel & Utrera, P.A.:

• Illinois Limited Liability Company $179.95
• Illinois Series Limited Liability Company $779.95
• Illinois Investment Club LLC $224.95
• Illinois Special Purpose LLC Self-Directed IRA Acct $597.90
• Illinois Series – Special Purpose LLC Self-Directed IRA Account $1449.95
• Illinois Special Purpose LLC Self-Directed 401(k) $597.90
• Illinois Series – Special Purpose LLC Self-Directed 401(k) $1449.95
• Illinois Dual Class Limited Liability Company $479.95
• Illinois Series-Dual Class Ltd Liability Company $1449.95

Partnerships

Starting a business in Illinois as a partnership will make you a partner in an unincorporated organization of two or more individuals or entities. The partners invest in and manage the operations of the business while sharing in its profits and losses. The partners must be comfortable with each other’s business decisions—considering that if one partner signs an agreement, it binds the other partner as well. A general partnership in Illinois does not have limited liability, which means that creditors can reach for a partner’s business or personal assets. For this critical reason, we recommend that clients starting a business in Illinois with a partnership in mind form a limited liability partnership, company, or corporation. As a partner of a general partnership, you report its business taxes on your individual income tax return; this is flow-through taxation.

List of Partnerships you can form when starting a business in Illinois with Spiegel & Utrera, P.A.:

• Illinois General Partnership $74.95
• Illinois Limited Partnerships $649.95
• Illinois Family Limited Partnership $649.95
• Illinois Limited Liability Partnerships $249.95
• Illinois Ltd. Liability Ltd. Partnership $199.95

Loans for Starting a Business in Illinois with No Money

There are several types of loans for starting a business in Illinoisand ways you can get money for your company:

Bank loans

These loans are term-based loans that usually require a personal guarantee and an excellent credit record.

Bridge loans

These loans are term-based loans that usually require a personal guarantee and an excellent credit record.

Brokerage Firm Loans and Lines of Credit

A number of major brokerage firms allow small business owners to obtain loans and credit lines.

Check out our Money For Your Business page where we list over 50 known methods to get loans and raise money for your Illinois business

Benefits of starting a business in Illinois

No Personal Liability

When starting a business in Illinois, you are forming a legal entity that is separate from yourself as an individual. The Corporation is granted powers that allow it to make decisions that an individual may make. For example, the corporation may enter into leases, borrow money, buy goods and services on credit—and in all cases, you are not personally liable for the transaction. If a problem arises, the only recourse would be against the Corporation. Similarly, if anyone were to file a lawsuit for an action arising from the corporation’s business, that party would not be able to go after your personal assets.

Business Tax Deductions

Entrepreneurs will want to attribute as much of their expenses as possible to reasonable and necessary business expenses. Why pay more taxes than necessary? Many taxpayers overlook legitimate deductions for business expenses. To the extent possible, entrepreneurs will want to ensure to deduct the following business expenses:

Minimize IRS Audits

Sole proprietors must file an IRS Form 1040, Schedule C (Profit or Loss from a Business). Unfortunately, the IRS audits sole proprietors that file the form at a higher audit rate than returns for an incorporated micro business. Also, sole proprietors with home office deductions face even more risk of audit by filing the IRS Form 8829 (Expenses for Business Use of Your Home) for home office deductions. S or C corporations avoid such scrutiny.

Privacy

The Corporation or LLC can be established in such a way so that shareholder/owners remain anonymous, many times the same anonymity can be accomplished for officers and directors.

Use of a Marketing Framework

The use of a Marketing Framework allows you to present your business to the public as a Corporation or LLC, giving your business the appearance of being much bigger than it is—which makes it easier to attract investors.

Raising Capital

Because of the ease of transfer of ownership and the “separate entity” concept of the Corporation or LLC, it is much easier to attract investors than otherwise.

Easy Transfer of Ownership

You can place real estate into the Corporation or LLC and transfer through a private agreement (i.e. stock transfer) rather than a formal real estate transfer, and closing. You can also re-title an asset to a Corporation or LLC yet continue to maintain control.

Starting a business online at home with Spiegel & Utrera, P.A.

We provide you with information, guidance and counsel based on our 175 years of legal experience. There are no hidden attorneys’ fees. No Credit Card is required to place your order.Using a reputable law firm to incorporate or organize your Corporation, LLC, Non-profit, or Partnership will ensure that all your bases are covered—preferably with one that provides you with legal advice and assistance beyond incorporation.