Sunday, August 23, 2009
Choosing a Business Entity
A frequently asked question by individuals who want to start a business is what type of entity should they operate under. Choosing the right business entity can give the new business a solid foundation for growth and will have significant consequences as to the owner's liability, tax consequences and the means in which the company can operate. In choosing an entity, consider the nature of the business, the goals of the principals, and the risks involved. For many small businesses in Illinois, I recommend an LLC (limited liability company) formation, which combines some of the best aspects of other types of entities. Each situation is unique, however, and an LLC will not fit everyone's tastes. Other entity forms used in Illinois are corporations (there are various types all governed by different regulation), partnerships (general and limited) and sole proprietorships. For more specific information, contact Ross Law Office to speak with an experienced attorney about choosing the right entity for you.