If you are considering forming a new corporate entity, like a company, limited liability company (LLC), or partnership, the attorneys of The White Law Group can guide you through this process.
There are many decisions that need to be made before selecting the best corporate entity for your particular business. Each corporate entity type has its own advantages and disadvantages that need to be weighed prior to incorporation. The following is a brief summary of the options available:
A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. The legal definition of a partnership is generally stated as “an association of two or more persons to carry on as co-owners a business for profit” (Revised Uniform Partnership Act § 101 ).
- A LIMITED LIABILITY COMPANY (LLC)
One of the newest and most flexible means of setting up a business is as a Limited Liability Company under the Illinois Limited Liability Company Act. A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures.
Each of these corporate entity options have tax and liability advantages that make them preferable to operating individually or as a group of individuals.
FORMATION AND ON-GOING FEES FOR CORPORATE ENTITIES
The State of Illinois places certain filing and fee requirements on limited liability companies, corporations, and partnerships. For example, there is an initial fee of $500 to incorporate and maintain an LLC. The LLC must also file an annual report and pay the state an annual report fee of $250. There are also fees for corporations, but these fees vary based upon the entity’s paid in capital.
DECISIONS TO BE MADE
When establishing a corporate entity (whether a partnership, corporation, or LLC), there are certain decisions that will need to be made. For example, for an LLC, you will need to decide how many members there will be. You may also need to decide whether an Operating Agreement is necessary (an Operating Agreement sets forth many of the basic terms of how the business will be run, how profits and losses will be split, etc., and is often necessary if your corporate entity will have multiple members or investors).
SERVICES PROVIDED BY THE WHITE LAW GROUP IN HELPING YOU INCORPORATE
- Search name availability with Secretary of State to ensure that the name you have in mind for your business is feasible;
- Prepare and submit “Articles of Organization” to the state of Illinois;
- Procure Federal Employer Identification Number from IRS;
- Prepare membership certificates; and
- Prepare documents necessary to complete company minute book, including, if necessary, an operating agreement