Every business wants the competitive advantage of a successful incorporation. But incorporating a business in Chicago can be an intimidating, complex, and confusing process.

Fortunately, access to experienced commercial attorneys and local regulation knowledge, such as UpCounsel’s, is simpler than ever. This article will break down the frequently asked questions about incorporating in the Windy City so that you can get your business off the ground without legal hiccups.

Questions About Corporations

The most popular business entities in the United States are the corporation, limited liability company (LLC), and limited liability partnership (LLP). Let’s examine which structure might be best for you.

What is a Corporation?

A corporation is a legal entity that is separate from its owners. In a corporation, the owners or shareholders are not liable for any of the business’s debts or obligations. The corporation is taxable as its own entity, meaning any losses or profits are taxed separately.

What Should I Consider With a Corporation?

Before forming a corporation, consider whether you’ll need to issue additional stock or additional classes of stock. Also consider if you’ll need to mandate bylaws, such as document retention and voting requirements. You’ll want to decide how many directors you’ll need, as well as the length of the directors’ terms. Additionally, you’ll have to reconcile the long-term corporate strategy with the best corporate form for tax efficiency.

What is a Limited Liability Company?

An LLC is a highly popular business entity that combines the features of a traditional corporation with the limited liability of a partnership. An LLC offers its members an attractive combination of pass-through taxation, limited liability, and some of the fringe benefits of a corporation.

What Should I Consider With an LLC?

When considering an LLC in Chicago, you’ll need to think about registration details (such as where it’s registered and who the registered agent is), how membership is structured, and how profits are distributed. You’ll also need to consider if you’ll need debt financing. Additionally, long-term taxes must be considered when forming an LLC and agreeing on how profits are distributed.

What is a Limited Liability Partnership?

An LLP is a form of business entity that combines the limited liability of corporations with flexibility. In an LLP, all the partners have limited personal liability, but profits and losses are taxed according to state law, meaning each partner files a separate tax return.

What Should I Consider With an LLP?

When considering an LLP for your business, be sure to create a detailed operating agreement that covers both management and partner responsibilities, as well as the arrangement of capital contributions and profits sharing. Additionally, you should also consider insurance coverage, employee protection, and the lapse of partnerships.

Questions About Registered Agents in Chicago

Every business in Chicago must have a registered agent, who will receive important service notices and official documents on behalf of the business. Consider the following information when choosing a registered agent.

What is a Registered Agent?

A registered agent is an individual or business entity that is located in the state where the company is incorporated and is authorized to receive legal notifications. The registered agent also might help in the process of forming a business entity and ensuring long-term compliance with the local regulation.

What Should I Consider With a Registered Agent?

When looking for a registered agent in Chicago, it’s important to consider one that can provide trusted service and understand the local regulation. As an example, UpCounsel has experience in Chicago businesses and understands the rules and regulations. When choosing a registered agent, you should also consider additional services, such as filing documents such as tax forms and annual reports.

Questions About Choosing a Legal Team

Having a reliable legal team on your side can add success to your business. Consider these FAQs when choosing the best legal team for you.

What Should I Look for in a Legal Team?

When looking for legal support, it’s important to select lawyers who have experience in the specific area of your business. Attorneys can differ significantly in terms of area of law, expertise, connections, and fees. So choosing the right team is essential. When evaluating, consider the attorney’s expertise, location, education, and references.

Which Type of Legal Team is Best?

For many businesses, having in-house counsel is not an option. Freelance legal services, such as UpCounsel, are constructed to provide top-notch legal representation, tailored to meet the specific needs of each business. With UpCounsel’s network of experienced attorneys, small businesses through the Fortune 1000 can find high-quality and cost-effective legal services. Document review, file creation, contract drafting, and entity formation are just a few of the services UpCounsel provides.

What is UpCounsel?

UpCounsel is a top legal and business resource that provides fast access to experienced and affordable attorneys.Save time and money with UpCounsel’s network of attorneys, who focus on providing comprehensive legal services, no matter the size and scope of your business.UpCounsel attorneys are held to the highest degree of legal standards and clients can easily browse their background and experience to make sure they have the qualifications necessary to provide a successful service.

To summarize

Getting your Chicago business off the ground requires navigating the complexities of local regulation. Fortunately, with the right resources and legal assistance, business owners can successfully form their entity and incorporate their business. UpCounsel provides quality legal services with experienced attorneys so that you can get on with the business of doing business.

Topics:

incorporation,

Chicago,

attorneys