Top 5 Things to Consider When Incorporating in Chicago, Illinois
Are you looking to incorporate your business in Chicago, Illinois but don't know what you need to consider2 min read
Are you looking to incorporate your business in Chicago, Illinois but don't know what you need to consider? Whether you're just starting a business or growing an existing one, it's important to gain an understanding of the legal requirements involved in incorporating. Incorporating can help protect your personal assets and reduce your liability, but there are various laws and regulations that apply in Chicago and the surrounding region. Here are the top five things to consider when incorporating in Chicago, Illinois.
First, you need to select a business entity type. In Illinois, the most common entity choices are corporations, limited liability companies (LLCs), and limited partnerships (LPs). Each entity type has its own advantages and drawbacks, so it's important to consider your individual goals and consider which option best suits your needs.
Second, consider who you want to have as a shareholder in your corporation or as a member in your LLC. Generally speaking, shareholders and members must be US citizens or resident aliens, but there are also foreign ownership rules that apply in certain situations. You need to plan ahead and make sure you have the proper agreement in place to ensure that the entity remains in compliance with ownership restrictions and any applicable laws.
Third, there are certain fees associated with incorporating in Chicago. Generally speaking, these fees include the cost of preparing the articles of incorporation or organization and filing them with the appropriate state office. You may also need to pay filing fees for any tax documents that need to be filed with the IRS. Additionally, if you plan to engage in certain activities that require additional licensing or permissions, such as traveling out of state or serving alcoholic beverages, you will need to pay for the appropriate permits or licenses.
Fourth, it's important to ensure that your company has adequate governance in place. This means creating and implementing a set of company bylaws to ensure that the business is run properly and that all members and shareholders are informed of their rights and duties. Additionally, if you plan to have employees, you will need to establish an employee handbook with all the pertinent information regarding payroll, benefits, employee leave, and workplace safety.
Finally, you will want to find an experienced attorney or lawyer who specializes in corporate law to help you with the process of incorporation. It's important to work with someone who is up-to-date on local regulations and who is familiar with the local rules and procedures that apply in Chicago. An experienced lawyer can also provide sound legal advice to help ensure compliance and protect your rights.
Incorporating in Chicago, Illinois is an exciting step for any business. However, there are a few key elements to consider when making the decision. By researching the various requirements and understanding the legalities involved, you can ensure a smooth incorporation process and a successful journey for your company.