Making the Most of Illinois Corporation and Partnership Law

Protect your assets with Illinois LLC law

The key to making the most of Illinois corporation and partnership law is the decision to incorporate your business. A corporation affects your ability to gain capital, controls the amount of debt you assume and determines your tax obligations. However, these advantages must be balanced against the additional taxes your business will incur.

Illinois partnership law makes a partnership subject only to personal income tax, unlike a corporation. On the other hand, business partners may be held responsible for business debts.

There are several options for forming a company under Illinois corporate law. These include:

1. Illinois incorporation as a profit or non-profit corporation. An S corporation (S-corp) is taxed under Subchapter S of the Internal Revenue Code which generally does not include income taxes.

2. An Illinois limited partnership. This type of partnership has limited partners in addition to general partners.

3. An Illinois limited partnership. This type of partnership has limited partners in addition to general partners.

Determine the type of corporation that best suits your business under Illinois corporation laws

The most important factors to consider are the personal liability obligations and tax implications. You should also familiarize yourself with the operating requirements and reporting regulations.
Illinois General Assembly provides the relevant statutes on business law sorted by organization type.

Find an attorney to help you incorporate in Illinois

Incorporating in Illinois must comply with the disclosure, operating and reporting requirements. Illinois corporation law specifies these requirements in detail.

Find sites to show you how to form a corporation in Illinois

You must file the registration forms and pay the associated fees as required by Illinois corporation law in order to form a IL corporation or IL partnership. You may also need to file Articles of Incorporation, depending on the type of corporation you decide to register.

Illinois corporation law requires annual fees and filings to maintain your corporation. Corporations are automatically C-corps unless they specifically register as S-corps with the primary difference being the way they are taxed. One person may frequently hold more than one position in these corporations and many if not all shareholders are also directors in a small corporation.