Business Formation Lawyers in Chicago
With many years of experience advising businesses in the greater Chicago area, Michna & Khanice, Attorneys at Law serves as general business counsel, helping you choose the most advantageous entity for your business. We work closely with your accountants and tax specialists to determine whether a partnership, S- or C- corporation, LLC, or other business entity will be the best choice to protect personal liability and minimize taxes.
In addition to new business entity formation, we also assist with partnership agreements and other business contacts.
Business Formation Law
How to Make the Right Choice
Deciding the type of legal structure your business will operate under is important for its long-term growth and sustainability, and needs to take into consideration tax implications, personal risk, funding opportunities, and asset protection.
As specialists in the complex area of business law, we have assisted many business owners in choosing the business entity that will allow them to minimize their risks and give their business the best chance of success.
In Illinois, the 5 most popular business entities are:
1. Sole Proprietorship
This is the simplest business entity, and all responsibility resides with the company’s owner. There is no formal documentation required, and there is no requirement to file a separate tax return for the business. This is a risky choice in terms of personal liability, putting the owner’s personal assets at risk, and additional funding becomes an issue as it is not possible to buy shares in the company.
2. Limited Liability Company (LLC)
This is the most popular choice among small businesses as it offers a greater degree of legal protection compared to a sole proprietorship as business owner(s) cannot be held personally liable.
3. Limited Liability Partnership (LLP)
A limited liability partnership offers the tax benefits of a partnership along with some of the legal protection that a corporation offers.
4. C Corporation
This is the simplest business entity, and all responsibility resides with the company’s owner. There is no formal documentation required, and there is no requirement to file a separate tax return for the business. This is a risky choice in terms of personal liability, putting the owner’s personal assets at risk, and additional funding becomes an issue as it is not possible to buy shares in the company.
5. S Corporation
An S corporation is similar to C corporation, but there are limits on the number of shares that can be sold as well as restrictions on how the profits are distributed. A major benefit is that there is no double taxation, and legal liability is limited.
This is Where it All Begins
We look forward to assisting you with your business formation needs. We take a personalized approach to each client, taking the time to understand your needs to help you choose the right type of entity. Once the entity has been chosen, we will draft and file the necessary documents, and help you with registration and permits. To get started, please give us a call or fill in the form below.