Bensenville Business Formation Attorneys

DuPage County Business Lawyers Helping Start-Up Companies With Entity Selection

Managing a business successfully will require a company's owner or partners to address multiple types of ongoing concerns. The steps taken and procedures followed when initially establishing a business can have a huge impact on a company's processes going forward. To ensure that a business is prepared to address its ongoing needs, it is important for business owners and partners to structure a company using the right type of legal entity. Owners of startup businesses or companies that need to be restructured can ensure that they are addressing these issues correctly by working with an experienced business law attorney.

The law firm of Hunt & Subach, Ltd. offers knowledgeable legal assistance to help business owners and partners address a wide variety of issues. If you are planning to found a new business, or if you want to take steps to formally establish a business entity that will protect you from liability and ensure that you can take advantage of tax benefits, we will explain your options and work with you to determine the best choices that will meet your needs. In addition to assisting with the process of entity selection, we can provide you with general counsel services to address your ongoing legal needs, as well as representation in business disputes and litigation.

Options During the Business Formation Process

When a company is initially founded, it may be easiest to treat it as a sole proprietorship or general partnership. This is the simplest type of business structure, allowing for flexibility in business operations and financial decisions, and an owner or partners will not need to take any additional steps to establish a company as a legal entity. In these cases, any assets owned by the business will be included among the personal assets of the owner or partners. However, this means that owners and partners will be liable for repaying business debts, and they will also be liable for any claims made against the company.

Owners and partners can provide themselves with better protection and realize other advantages by structuring a company as a legal business entity. In some cases, this may be done by creating a limited partnership in which certain partners will have protections from liability. In a limited liability partnership or LLP, all of a business's partners will be limited partners, and each partner will be protected from being held liable for the actions of other partners. This type of structure can be beneficial for professional practices such as medical or dental offices or accounting firms, since it can help partners avoid liability for malpractice committed by another partner.

Establishing a business as a corporation can also provide a number of benefits, including protection from liability and the ability to raise financing by selling shares of the company to investors. However, corporations have a number of requirements for record-keeping, reporting, and maintaining a board of directors and organizational structure. Some types of corporations may be subject to double taxation, since the corporate tax rate will apply to the business's earnings, and partners may also pay income tax on the profits they earn.

By structuring a business as a limited liability company or LLC, owners and partners may be able to take advantage of the benefits provided by a corporation while maintaining greater flexibility and avoiding double taxation. This type of structure will provide protections against liability while imposing fewer administrative and record-keeping requirements and providing the ability to raise financing and allocate profits based on the company's operating agreement.

Contact Our Bensenville Business Formation Attorneys

If you need to determine the best way to structure your business, our lawyers can advise you of your options, and we will make sure you meet all of the legal requirements that will allow your company to operate successfully. Contact our office at 630-860-7800 to set up a complimentary consultation. We provide legal help to start-up companies and other businesses in Wheaton, Naperville, St. Charles, Geneva, Kane County, Downers Grove, DuPage County, and Bensenville.