Lawsam.com Estate Planning, Real Estate, Elder Law

Business Formations

If you start your own business it can be a wise move to create a new business entity to avoid mixing your personal assets and business assets. There are several choices for small business owners:

1. Assumed Name. This is used if you want to use a name other than your own for the business. Say I start a web site design business and want to call it “Web Creations.” I need authority to do this from the county I live in, so that others dealing with my business known who is behind “Web Creations.” An assumed name certificate is filled out and a notice is published in the newspaper. This is quick, easy but offers no protection from liability. Part-time or one-person businesses use this form a lot. All of the information you need and an the application and forms are available at: http://www.cookctyclerk.com/bizregistrations.html

2. Corporation. Corporations are formed through Illinois Secretary of State. They are good to use if you are in a risky business and want to keep your personal assets separate from your business assets. The fee is charged by secretary of state is $100 to form the corporation. Check on-line at http://www.sos.state.il.us/ to see if the name you want is available then give us a call and we will form your new business for you. Most people choose an “S” corporation rather than a “C” corporation (this relates to an IRS form that is filed on how the business is taxed, after the corporation is formed).

3. Limited Liability Companies. These are relatively new and are alternatives to corporations. The filing fee and annual fees are higher than corporations, but LLCs have less formality than corporations are sometimes a better choice

Sales of Businesses. Once your new business grows and thrives and you decide to sell it for a huge profit, I also handle the sale and purchase of businesses.

See my fee schedule for fees.

Note: This site is for informational purposes only. Please discuss your situation with the lawyer of your choice.