Using Illinois Corporation and Partnership Law
Form a business with Illinois corporation law
Making a new corporation is one of the most common reasons for using Illinois corporation and partnership law. A small business may prefer to file the documentation needed to incorporate a business directly with the state. There are also many companies that provide business formation services for a fee.The most important factor in incorporating in Illinois is choosing a specific business structure. Illinois partnership law makes some important distinctions between a corporation and a partnership. A partnership generally does not pay a business tax although the partners are liable for business debts.
Corporate law defines the way in which the following entities interact:
1. Shareholders that fund an incorporation in Illinois. Shareholders may hold special privileges such electing a board of directors, proposing resolutions and sharing in the company’s income.
2. Directors that oversee the company’s activities. The activities of the board of directors are typically determined by the company’s bylaws. The board of directors and the shareholders are typically the same group of people in a small business.
3. Employees that provide expertise and perform labor for the company. Employees are also shareholders in many cases.
Select the best structure for your business according to Illinois corporation laws
Your choice of business types can include corporations, full partnerships and limited partnerships. There are many sites that summarize Illinois incorporation laws and you may also need an attorney to explain these laws to you.
Try: The Champaign Public Library discusses the differences in the various types of businesses in Illinois. LLC Made Easy specifically provides the requirements for forming a limited liability company in Illinois.
Use a company to help you incorporate in Illinois
There are many online services that can submit the required forms on your behalf in exchange for a fee. However, you will still need to comply with the disclosure, operating and reporting requirements.
Try: AllCorp Filings provides an order form that is already customized with the specific fees for Illinois. American Incorporators allows you to provide Illinois specific filing information according to the incorporation type.
Create a new business by yourself under Illinois LLC law
Each state has a department that is responsible for the formation of new businesses. You can complete these forms yourself and submit them directly to the correct government department.
Try: The Secretary of State for Illinois has a Business Services Department that maintains all the required forms for incorporating yourself in Illinois. The Department of Commerce and Economic Opportunity provides assistance for entrepreneurs who wish to start their own business.
- You will need to select a name before you create a Illinois company. Many online services provide a name search function to determine if a particular name has been used before. The required forms will also provide spaces for more than one business name in many cases. This increases the chances that an unused name can be found.
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