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DuPage County Business Formation Attorney

Villa Park business incorporation attorneys

Lawyers for Startups and Business Structure in Glen Ellyn, Wheaton, and Lombard

Entrepreneurs in the United States have no shortage of opportunities. Whether they are looking to manufacture or sell products, provide services in person or online, or generate revenue through other business activities, anyone who has an idea for a business can put their plans into action. However, when starting a new business, entrepreneurs should take steps to protect themselves from liability, and they will also want to make sure a company is structured in a way that will foster growth and take advantage of tax benefits. An experienced business law attorney can provide invaluable legal help to startups and make sure the proper procedures are followed when establishing a new business entity or restructuring an existing company.

At NN Legal Group, we provide business owners with dedicated and personalized help to address their legal concerns. We will take the time to get to know you and understand your needs, and we will advise you about your options while helping you understand the most advantageous approach to take. Attorney Nicolas Nelson has more than 12 years of legal experience, and he will provide you with practical legal advice while working to help you accomplish your goals for your business.

Options When Choosing a Business Entity

No matter the size of a company, establishing a formal business structure can ensure that it will be able to operate successfully, and it can protect a business owner from being held personally liable for the company's debts. There are many different ways a business can be structured, but the most common types of entities include:

  • Sole proprietorship - If a person conducts business activities without registering their company as another type of entity, their business will be considered a sole proprietorship. In these cases, the assets and liabilities of a business will not be separated from the owner's assets and liabilities. While this gives a business owner complete control over their business, it also means that they can be held liable for the business's debts.
  • Partnership - A business that is co-owned by multiple people may function as a general partnership, which is similar to a sole proprietorship. In this type of entity, the partners will share liability for business debts. General partners can also create a limited partnership in which some partners will be considered limited partners who have limited control of the management of the company and are shielded from liability. Partners may also be able to form a limited liability partnership (LLP), in which all of a company's partners are limited partners who are protected from liability that may arise due to the actions of other partners.
  • Corporation - In many cases, it is advantageous to establish a business as a legal entity that owns assets and earns profits separately from the owners' assets and finances. This will provide owners or partners with protection from liability, and it will allow owners to raise funds by selling shares of stock in the company. Corporations have extensive record-keeping and reporting requirements. Certain types of corporations, known as C corporations, are required to pay taxes on profits earned by the company, and this can lead to double taxation since taxes will also apply to the dividends that shareholders earn. Establishing a company as an S corporation can avoid double taxation. S corporations are "pass-through entities," and this means that profits and losses earned by the company will be considered as part of the shareholders' personal income rather than being taxed at the corporate rate. S corporations are limited to 100 or fewer shareholders.
  • Limited liability company (LLC) - This type of structure is a hybrid of partnerships and corporations. It provides owners with liability from business debts while allowing them to maintain control over the operation of the business. Like S corporations, LLCs are pass-through entities, but there is no limit on the number of members who can have an ownership share of an LLC.

Contact a DuPage County Business Startup Lawyer

When establishing a new business or changing the structure of an existing business, it is important to work with an attorney who can explain the available options and ensure that the correct steps are followed. NN Legal Group will work with you to determine the ideal structure for your business, and we can help you file the proper paperwork, create the necessary partnership agreements and other types of contracts, and act as general counsel to ensure that you can continue to operate your business successfully in the years to come. To arrange a free consultation and learn more about the legal services we provide to businesses, contact our office at 630-474-0925. We work with businesses in Wheaton, Bloomingdale, Glen Ellyn, Addison, Lombard, Glendale Heights, Carol Stream, Villa Park, and DuPage County. Hablamos Español.

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