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121 South Wilke Road, Suite 301, Arlington Heights, IL 60005

Arlington Heights Lawyer for Business Formation

Mt. Prospect IL Business Start Up Lawyer

Business Start-Up Attorney Serving Palatine, Schaumburg, and Rolling Meadows

When deciding how to organize a company, it is best to seek assistance from a skilled business attorney. This will become apparent, particularly as you evaluate the more complex options. Considerable differences may apply regarding tax advantages, formation expenses, flexibility in business expansion and liability concerns. At Steven C. Kyriazes, P.C., we have been helping organizations in many aspects of business law for nearly four decades throughout Cook, Lake, McHenry, Kane, and DuPage Counties.

Understanding the Options for Organizing a Business

There are multiple ways to organize or register a business, including:

  • Sole Proprietorship: A sole proprietorship is a business owned and managed directly by an individual. While the advantages of this option include the simplistic process of formation and minimal regulatory and reporting requirements, a key disadvantage is the owner's exposure to personal liability for business liabilities and relatively limited options for expansion and obtaining capital.
  • General Partnership: Partnerships have two or more co-owners in a for-profit entity and may be classified as general and limited. Successful partnership formations require transparency and a realistic assessment and description of each party's stake in the business and responsibilities which must be spelled out in a comprehensive Partnership Agreement.
  • Limited Partnership: These organizations are partnerships with one or more general partners responsible for managing the business and limited partners who, while being co-owners, typically are not involved in the daily operations.
  • Limited Liability Company: LLCs are means of ownership that limit the owner's (called "members") individual liability. They allow for significant adaptability and flexibility in structuring and managing the business and are a practical, limited-liability option for many types of businesses.
  • Corporations: Corporations are limited liability legal entities which are generally the most complex in terms of formation and operation. Owners (shareholders) choose a board of directors which, in turn, elect officers who oversee the executive management team and those responsible for day-to-day operations. Corporations offer considerable flexibility in tax treatment of the business. S Corporations have a unique tax structure in which the profits of the business are taxed to the shareholders based on their percentage of ownership.

Franchising

Established businesses often seek to offer franchise opportunities to those looking to start a business which are based on their business model and brand. The Franchise Disclosure Act managed by the Illinois Attorney General regulates these arrangements. Those considering the purchase of a franchise will want to have the franchise agreement reviewed by a business attorney. There are usually significant legal obligations and financial commitments involved.

Liaison With Other Professionals

Steven C. Kyriazes, P.C. can help you obtain assistance from other business professionals. Bankers can assist with providing loans. Accountants can suggest solutions for implementing and streamlining payroll and help explore tax options as well as other key financial aspects of the business. An insurance broker can review your insurance coverage needs and present options to protect you and your business from potential losses.

Business Taxes

Taxes are numerous and often complex for businesses. You will encounter federal, state and local taxes including income, payroll, sales taxes and more. It is critical to understand the tax structure of your business and your obligations. As a holder of Master of Laws (LL.M) degree in Taxation, Steven C. Kyriazes is in a unique position to work with business owners and their accountants in devising the most advantageous tax structure for their business. At the time the business is formed, Steven C. Kyriazes, P.C. will assist you in obtaining your federal Employer ID Number (EIN) and your state Department of Revenue number, if needed.

Other Critical Matters

Additional aspects of business planning must be considered, such as:

  • Determining and complying with your annual reporting requirements with the Secretary of State.
  • Considering if a corporate tax status such as an S-Corporation or C-Corporation may be suitable options.
  • Selecting the name of your business and protecting it legally.
  • Understanding the state and local licensing requirements for your business classification.

When forming a business, there are too many legal considerations involved to try to do it without a lawyer. Steven C. Kyriazes is a prominent business attorney with the credentials and experience to assist you. For a consultation, contact our office today at 847-788-1500.

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