Business Formation Lawyer for LLCs, S-Corps, Corporations, and Other Illinois Entities

At RNH Law, as a business formation lawyer, I help new business owners by working with them to form the right business entity for them. We base this upon their expected operations, future growth, ownership, and financing objectives.  Whether you need assistance forming a limited liability company (LLC), S-corporation (S-Corp), C-corporation (C-Corp), limited liability partnership, partnership, or professional corporation, I can help you get off to the right start.

Illinois business law matters are highly complex, and even minor missteps can have costly financial ramifications.  When determining the best business form for their operations, I review the following and other items with business owners:

• Desired ownership
• Future financing
• Type of operations
• Stage of development
• Taxation
• Personal liability considerations

As a small business owner myself, I passionately believe that Frankfort-area businesses and those in the surrounding towns and cities play a central role in the health of our community. Local businesses significantly advance economic opportunity and build community self-determination.  For this reason, I offer a free initial business consultation and affordable rates that allow entrepreneurs to obtain the experienced legal guidance needed to create thriving businesses without breaking the bank.

Call our office today to schedule a free initial consultation either at our office or your place of business. 

Do I Need an LLC, Partnership, or Corporation?

The first, and perhaps most important, step an entrepreneur should take when starting a business is choosing a business and tax structure to operate under.  How a company is established makes a significant difference in a variety of issues, including:

• The amount of personal risk assumed
• Whether partners or shareholders can readily invest
• How founders invest in the success of an enterprise
• How the business will be taxed
• How profits, and potentially business losses, will be allocated

At RNH Law, as an Illinois business formation lawyer, I am available to provide trusted and experienced business formation counsel to family-owned and other businesses in Frankfort, Tinley Park, Mokena, Matteson, New Lenox, Kankakee, and the surrounding communities.  I help new business owners evaluate the choice of entity from among the entity types that Illinois law recognizes.  If you are considering starting, buying, or merging a business in Illinois, call our office to schedule a free consultation to discuss what entity option is best for you.

What Are the Different Types of Business Structures in Illinois?

Here are the most common types of entities in Illinois and a short summary of their key attributes:

Limited Liability Companies (LLCs)

• Legal structure is independent of the owners
• Separation between an owner’s personal assets and company liabilities
• Allows for unlimited amounts of investing owners
• Typically taxed as a sole proprietorship
• No stock shares or shareholder meetings
• Operating agreements, as approved by the owners, set the company directives

Corporations

• Personal assets and liabilities are separate from the business
• Both corporate profits and shareholder dividends are taxed
• Annual investor meetings and minutes are required

S Corporations

• An “S” corporation is legally formed in the same manner as a “C” (or “regular”) corporation; the major difference is that an S corporation has what is referred to as “pass-through” taxation. This means the corporation is not subject to tax on income, and instead, the owners are taxed on income from the company based upon their ownership percentage.
• Retains separation between owner’s personal assets and business liabilities
• Owners report profits and losses on personal tax returns
• Limited shareholders (all must be U.S. citizens or legal residents)
• Annual shareholder meetings and minutes are required

Sole Proprietorships

• Owner is personally liable for all lawsuits filed against the business
• No paperwork required with the state to form this business entity
• Easy to set up and operate
• Profits and losses must be reported on owner’s personal tax returns

General Partnerships

• Founders, or partners, are personally liable for business debts
• Not required to file partnership paperwork with the state to form entity
• Investing partners must report profits and losses on personal tax returns

Limited Partnerships

• The limited partners are not personally liable for debts of the business
• Offers a wide variety of financing, investment, and re-payment structures to the limited partners/investors, which are not possible with corporations

The foregoing is only a summary of some of the elements and differences of entity choices in Illinois. This summary should not be relied upon for making a business entity decision as there are other critical factors that should be considered.  As an experienced Illinois business formation lawyer, I can explain the potential benefits and disadvantages of each entity structure so you can make an informed decision about what entity choice is best for your business.

What Do I Need to Form an Illinois Business?

At RNH Law, we assist with all steps of the business startup process, including:

• Legal Entity Selection
• Drafting Articles of Incorporation, Articles of Organization, or the other appropriate foundational documents
• Drafting the following, as may be necessary or appropriate:
  • An operating agreement
  • Bylaws
  • Subscription agreements for owners and investors, and stock certificates or ownership certificates to evidence the purchase of entity interests
  • Employment, Independent Contractor, and Work for Hire agreements
  • Confidentiality/Non-Disclosure agreements
  • Minutes or consent actions to appoint directors and officers, and to approve other start-up matters
  • Shareholder/Owner and Buy-Sell Agreements
  • Employment Policies and Handbooks
• Filing the necessary documentation with the Illinois Secretary of State

Schedule a Free Consultation with Business Formation Lawyer Attorney Ryan Hejmanowski Today.

I look forward to meeting with you at your business or at our offices to help you start your business today.