Starting a business can be a challenging and exciting endeavor. But before you start a business, it's important to make sure you're following all the legal requirements and making smart decisions from the start in order to avoid serious headaches and consequences later on down the road. To help you do that, here are five helpful tips to keep in mind if you are considering starting a business in Illinois:
Choose the right business structure. There are several options for business structures in Illinois, including sole proprietorships, partnerships, LLCs, and corporations. Each has its own advantages and disadvantages, so it's important to choose the one that makes the most sense for your business. Choosing the right business structure is a crucial first step that is likely to have long-lasting consequences if not given serious consideration.
File the necessary paperwork. Once you've chosen a business structure, you'll need to draft and file the necessary paperwork with the Illinois Secretary of State's office. This includes drafting and filing the articles of incorporation or organization (depending on which business structure you choose), as well as registering for any necessary licenses and permits. It's also a good idea to prepare your company's by-laws, which are a set of rules laying out how your company will be organized and governed. These are typically complicated legal documents, so we recommend consulting an experienced business attorney.
Get an Employer Identification Number (EIN). You'll need an EIN to open a business bank account and file taxes, among other things. You can apply for an EIN online at the IRS website.
Understand your tax obligations. All businesses in Illinois are required to pay taxes, so it's important to understand what your tax obligations are from the start. This includes registering for sales tax and other taxes specific to your industry.
Consult with a business attorney. An experienced business attorney can help you navigate the legal requirements for starting a business in Illinois as well as help you make important decisions about your business. They can also help you form your business and draft important documents such as articles of incorporation or organization, by-laws, business agreements, contracts, and employee handbooks, among others.
Starting a business can be a complex process, but by following these tips, you'll be off to a good start. If you're looking for an experienced business attorney in Illinois, consider reaching out to Imeri Rogers, LLP, and schedule a consultation to learn more about how we can help.
Additionally, you may also want to check out the website of the Illinois Small Business Development Center, which provides resources and advice for starting and growing a business in Illinois. Or you can also check out the Illinois Secretary of State's website for more information on starting a business in the state.