Getting Started with Incorporating in Chicago
Doing Business in or Around Chicago: Legal Obligations3 min read
Doing business in or around Chicago comes with certain legal obligations, whether you are setting up shop in the city or marketing to customers living in and around the Chicago metropolitan area. Whether you need a one-time consultation or an entire legal department, getting in touch with the right legal counsel is essential.
Incorporation is the general term used to describe the process by which a business, typically a small business with one owner or a few partners, takes on a separate legal identity from its shareholders. Incorporation offers a number of advantages, including limited liability protection, tax benefits, and increased credibility. The process of incorporating in Chicago is mostly the same as incorporating in any other state or municipality. However, there can be some differences between jurisdictions, so it’s important to get advice from legal counsel who is familiar with local regulations.
In this article, we’ll provide an overview of the process of incorporating in Chicago, as well as tips for finding the right legal counsel to help you through the process.
Forms of Incorporation in Chicago
In Chicago, there are several different forms of incorporation, including limited liability companies (LLCs), corporations, and limited partnerships (LPs). Each of these entities provides distinct advantages and disadvantages, so it’s important to do your research and determine which form is most appropriate for your business before proceeding.
LLCs are the simplest and most common form of business entity in the United States. LLCs provide their owners with limited liability protection, which means that the company’s debts do not become the obligations of the owners. LLCs also provide flexibility in terms of how the company is structured and managed.
Corporations, on the other hand, are more complex entities that provide additional protection for their owners. Corporations are separate legal entities, meaning that their debts are not the obligations of the owners. Corporations also provide their owners with limited liability protection, which means that they will not be personally liable for the corporation’s debts.
Limited partnerships are another form of business structure. Limited partnerships offer similar protections as LLCs and corporations, but they also allow investor-partners to share in the profits and losses of the business. However, it’s important to note that limited partners do not have management authority, as they are deemed merely passive investors.
The Process of Incorporating in Chicago
Incorporating in Chicago follows the same basic steps as in other states and municipalities, but it’s important to be aware of the local regulations and procedures. The process typically involves filing the appropriate paperwork with the appropriate state agencies, obtaining the necessary licenses and permits, and registering the business with the Secretary of State.
One of the first steps is to choose a name for the business. The name must not be similar to an existing business in the state, and the name must meet other state and local requirements. You must also file the necessary documents with the state to obtain a Certificate of Incorporation. This document officially establishes the business as an incorporated body. Additionally, you must file a Certificate of Authority if you plan to do business outside of Chicago.
Once the business is legally incorporated, you must obtain the necessary licenses and permits. In Chicago, businesses must obtain an Employer Identification Number (EIN) from the Internal Revenue Service, which is used to identify the business for tax purposes. Additionally, businesses must obtain a Certificate of Authority or a Business Operating Permit from the state of Illinois in order to do business in the state.
Finding Local Legal Counsel for Your Business
Finding the best legal counsel for your business is essential, especially when you are incorporating in an unfamiliar jurisdiction such as Chicago. UpCounsel is an online marketplace that can help you find the right legal counsel for your business. Whether you need a one-time consult or an entire freelance legal department, they can help you get the job done.
Their network of experienced attorneys averages 14 years of experience, so you can be confident that their lawyers will be knowledgeable about the regulations and procedures unique to Chicago. Additionally, their online profiles provide ratings and reviews of recent work, so you can be sure that you are getting the best legal advice.