Starting a business can be exciting and rewarding, but requires tremendous effort and dedication. In order to ensure that you are in compliance with the regulations applicable to the business model you select, you must understand what is necessary of you. One important distinction to make when forming a business is understanding the differences between corporations and other entities. This article explains the specifics of what constitutes a corporation in the state of Illinois, as well as some of the associated legal requirements.

A corporation is a legal business structure that is typically more complex than other entities and requires additional filing and legal requirements. Corporations offer limited liability protections to the owners of the business, as well as the ability to transfer ownership more easily. These are two major benefits that distinguish a corporation from other forms of business structures.

In order to form a corporation in the state of Illinois, the organizers must follow certain procedures. You must fill out and submit the Articles of Incorporation, a document which outlines the basic features of the proposed corporation such as the name, purpose, address, directors, and officers of the corporation. Additionally, you must pay the applicable filing fee.

After forming the corporation, there are additional steps to ensure that you remain compliant with the law. You must maintain records of the actions taken by the corporation and the shareholders, issue stock certificates to shareholders, and adhere to applicable corporate laws. In addition to ensuring compliance for the formation of the corporation, you may want to seek the assistance of a business law attorney to ensure compliance in matters such as contracts, employee matters, and other business issues that may arise.

There are penalties from the state of Illinois for failure to remain compliant with the regulations imposed on corporations. These penalties may include fines, suspension of business and dissolution of the corporation, and even jail time.

In summary, forming a corporation in the state of Illinois requires additional paperwork and legal tariffs as compared to other business structures. When seeking to form a corporation in the state of Illinois, you should take all necessary steps to ensure that you remain compliant with the applicable regulations. To ensure that all of your legal needs are met, you should consider seeking the assistance of a business lawyer experienced in Illinois. UpCounsel provides access to experienced and talented law professionals who understand the complexities of the Illinois laws related to corporations. Their attorneys have a variety of experience in dealing with corporations, and have demonstrated excellence in assisting businesses get off the ground and remain compliant.

Topics:

Corporation,

Illinois,

Business Law