When it comes to the complex web of laws governing corporations based in Chicago and abroad, many business owners, as well as corporate officers and leaders, are challenged with staying up to speed on the legal requirements for operating in the region. If you’re unsure about some of the rules and regulations that apply to corporate entities such as LLCs or publicly traded companies, read on to find answers to the most commonly asked corporate law questions.

When it comes to legal services for businesses, it doesn’t have to be costly and hard to find an attorney local to the Chicago area with the right expertise and experience. UpCounsel, for example, provides online access to experienced attorneys who are situated in the Midwest and understand the local regulations. With UpCounsel, you can access high quality attorneys whenever the need arises, while saving on the church that’s otherwise associated with working with a law firm or hiring a solo practitioner.

Questions about Setting up a Business in Chicago

One of the most common questions many entrepreneurs have when thinking of forming a business in Chicago is what type of business entity they should choose. A key factor in making this decision is the number of people that are involved in the business and the purpose of the business. For example, sole proprietorships are the best option for one-person businesses, while LLCs offer the best liability protection for businesses with multiple owners, since you and the other owners are not personally liable for any debts or legal claims against the business. Additionally, if you want potential investors to be able to buy and sell ownership interest in the business, you should consider forming a C corporation.

Another common concern when starting a business is understanding the necessary filings and registrations that need to be completed. Every business that operates in the state of Illinois is required to register with the state. After the registration process is complete, most businesses must file an annual report in order to keep their registration current. Additionally, depending on the type of business you’re operating, you might need to get additional permits, licenses, or other forms of regulatory approval in order to legally conduct business in Chicago.

Questions about Business Finances and Taxes

Running a business is for profit, which means keeping an eye on the finances and taxes is key. Most business owners need to be aware of the specific accounting methods they can use, such as cash basis or accrual method, as well as the various federal and state taxes that will need to be paid.

In addition to understanding the types of taxes applicable to the business, business owners should also consider the type of tax structure that will be most beneficial to them. For example, the federal government allows business owners to choose whether it is better to be taxed as an S-corp or C-corp. Additionally, businesses need to understand the regulations around whether taxes need to be collected from employees and, if so, how the withholding should be calculated and reported.

Questions about Business Contracts

Business owners entering into a contract often need to be aware of the specific language that is part of the agreement in order to protect the interests of the business. Some of the most important parts of a contract include the definitions section, which sets out the precise language that is being used throughout the contract; the terms of the agreement, which should outline the rights and responsibilities of the parties involved; any warranties, which provide a guarantee of some kind; and any limitations of liability. Additionally, business owners should be aware of Illinois’s various contract laws, such as the Statute of Frauds, that may affect the enforceability of the agreement.

Questions about Employment Law

When it comes to the hiring and management of employees, every business should be aware of the various employment laws in their location. For example, businesses in the state of Illinois need to be aware of the various wage and hour laws that apply to employees, which include minimum wage statutes and allowances for overtime pay. Additionally, employers should be aware of their rights and responsibilities related to federal laws, such as the Family and Medical Leave Act (FMLA) or the Americans with Disabilities Act (ADA).

Topics:

Corporate law,

Chicago,

Business formation