Getting Started on Incorporation in Chicago: What Executives Need to Know
Taking the time to do your research when it comes to incorporating a business is essential2 min read
Taking the time to do your research when it comes to incorporating a business is essential. For executives in Chicago wanting to incorporate a business, there are many things to consider such as budget, staffing needs, and understanding the local regulations.
Knowing what your start up business needs is the logical first step to deciding how to incorporate successfully. Many executives decide quickly on their business’s structure and budget, based on what works for most similar businesses. This can be a good reference point to start from but make sure you’re researching the Chicago regulations specifically. Having an understanding of the legal process, specific to the documents you will need to file and laws around incorporating in Chicago, are all essential steps.
To get started, you will need to decide which business structure is most suitable for the type of company you’re hoping to create. Options usually include sole proprietorships and Limited Liability Companies (LLCs). It’s important to understand the differences between these types of business structures.
Sole proprietorships are a single-person business in which the individual is the owner and is solely responsible and liable for the business, including any debt and legal liabilities the business may incur. LLPs are more complex and include set of members that work together to conduct business. Each partner is liable for the actions of all other partners, and profits and losses are divided proportionally among the owners.
Once you have determined which structure best fits your business, you will need to register a name for it. Searching the Secretary of State’s website for references to the same or similar names can save you time and money. Your business’ name must be unique and must not be a trademark or service mark owned by anyone else. You must also include specific terms with the name. These include LLC, Corporation, LTD, and Inc.
Next, you will need to obtain the appropriate licenses and permits. Depending on the type of business you are starting, you may need specific licenses and permits in order to legally operate in your area. It is important to research the specific state and local laws in the Chicago area to ensure that you a properly registered and in compliance. Additionally, you may need to obtain professional licenses or certifications if your business requires specialized knowledge or experience.
You will also need to obtain an Employer Identification Number (EIN). An EIN is an identification number used for filing taxes, opening bank accounts, and hiring employees. You can obtain one from the Internal Revenue Service (IRS).
Finally, companies in Chicago must register for certain taxes and adhere to evident filing requirements. A lawyer or tax advisor can help you understand the various taxes applicable and file the necessary paperwork.
Incorporating in Chicago can be a complex and lengthy process. It is important to research the local regulations and understand the documents you will need to file before getting started. Having access to experienced attorneys can help ensure that you aren’t missing any important steps. Consider working with a legal service provider such as UpCounsel who offers cost effective legal services and provides access to a network of experienced attorneys in Chicago who can help you with the incorporation process.
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