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Illinois Business Law Questions & Answers
2 Answers | Asked in Business Formation and Business Law for Illinois on
Q: Do we need to refile articles of incorporation or any other business docs when applying for NFP status for a for-profit

business. Business has been around for 37 years. We want to apply for 501c3 status to diversify our income and open up our services to more contracts and help more people. Currently, mostly are federal grants and we haven't earned profit in years.

T. J. Jesky
T. J. Jesky
answered on Sep 13, 2022

This may be easier than you think. If you want to convert a profit corporation to a non-profit organization all you need to do is complete Illinois Form EOA 205 (provided by the Illinois Secretary of State- a one page form) and send two copies of the completed form to the Secretary of State with... Read more »

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2 Answers | Asked in Business Formation and Business Law for Illinois on
Q: Do we need to refile articles of incorporation or any other business docs when applying for NFP status for a for-profit

business. Business has been around for 37 years. We want to apply for 501c3 status to diversify our income and open up our services to more contracts and help more people. Currently, mostly are federal grants and we haven't earned profit in years.

Matthew Morris
Matthew Morris
answered on Sep 14, 2022

You will almost certainly need to re-draft your Articles of Incorporation if you want to convert from a for-profit corporation to a not-for-profit corporation.

First, under Illinois law your new not-for-profit is required to have, as its purpose, one of the allowable purposes listed in the...
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2 Answers | Asked in Business Law and Patents (Intellectual Property) for Illinois on
Q: If I design a product that uses another person's patented component within my design, what permissions do I need?

I am creating a product (a stand for giant marquee letters) for my company that uses someone else's patented magnet as a component. What type of copyright/patent permissions, if any, do I need from the magnet company?

Michael Ray Smith
PREMIUM
Michael Ray Smith
answered on Sep 10, 2022

Note that I am not licensed in Illinois, and that none of the answers to questions in this forum should be considered legal advice.

You may need a license from the company that owns the patent and any other intellectual property rights, but maybe not if you simply buy the other...
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1 Answer | Asked in Business Formation and Business Law for Illinois on
Q: What do u need to start a compay? What’s a LLC and how can u get one

What would I need in order to open a taco truck and sell food.

David Luther Woodward
David Luther Woodward
answered on Aug 26, 2022

The first thing you need is a lawyer. You need a lawyer that represents small business who can guide you through the hurdles of setting up an LLC, obtaining permits and licenses, and all the stuff that goes along with being in business.

Good Luck

d

1 Answer | Asked in Banking and Business Law for Illinois on
Q: trying to make a determination on corp account escrow or not

We are hiring truck drivers for our company and want to hold $125 week out of their pay (for repairs or abandonment) until they hit $1,000- $3,000k. Would this have to be in a escrow account? The money will be in the account for the duration of their employment.

Demitrus Thomas Evans
Demitrus Thomas Evans
answered on Aug 11, 2022

Corp account escrow or not? Can you provide some details on the issue?

1 Answer | Asked in Business Law for Illinois on
Q: What are the facts before the initial lawsuit was filled What are the issues of law The courts ruling and holding

Was the court ruling correct or incorrect

Demitrus Thomas Evans
Demitrus Thomas Evans
answered on Aug 2, 2022

Good day, thank you for sending us the question but can you give us more specifics?

1 Answer | Asked in Business Law, Copyright and Intellectual Property for Illinois on
Q: Hi there, IP copyright dispute, between equal partners in series LLC. Concerns over whom IP Copyright belongs to.

The business (A clothing company) didn't generate any profit and we have agreed to dissolve the series LLC, Web P, social media page etc, but it does leave us with the IP of the designs that we independently created.

Neither of us were paid employees or hired to create our own designs... Read more »

Jonathon Maddox
Jonathon Maddox
answered on Feb 2, 2022

There are several factors here, and a thorough review of the LLC and Operating Agreement would be needed, as well as a full understanding of exactly how and when each design was created. I’m an IP Attorney, and would be happy to have a free consultation and see how I can help your legal needs.... Read more »

1 Answer | Asked in Bankruptcy, Business Formation, Business Law and Civil Rights for Illinois on
Q: I started a nail salon with someone. She didn’t have money to start it so I let her borrow from me but we didn’t make a

We didn’t make a contract. We worked for a month and a half now but we fell into a disagreement and she left and won’t respond to my calls. I’ve been working alone without even paying myself. How do I proceed from here when she won’t respond to any of my messages and calls.

Timothy Denison
Timothy Denison
answered on Jan 26, 2022

If there’s no agreement, just move forward as if the salon is yours. She has no interest since she provided no investment.

1 Answer | Asked in Business Formation and Business Law for Illinois on
Q: Can I change the name of my current LLC and later reopen a new LLC with my current name?

Can I change the name of my current LLC and later reopen a new LLC with my current name? Or would the name be unavailable? Example: changing my current LLC named "Blue" (that sells clothes) into a new name "red" (and be a completely different business model). In a couple years... Read more »

Joseph B. LaRocco
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Joseph B. LaRocco
answered on Nov 2, 2021

The simple answer is "Yes", as long as that name is still available and no one else has taken it. Once you change the name from Red to Blue, the name Red will be available and someone else might take it. Some states allow you to reserve a company name for a fee. For instance, Delaware... Read more »

1 Answer | Asked in Business Law, Contracts, Employment Law and Workers' Compensation for Illinois on
Q: Can you negotiate a new union contract before the old one has expired if it is in the best interest of the workers ?

I am part of a labor union in Illinois. Since COVID, we have lost many co-workers and applicants to higher-paying non-union jobs in our field. Our contract is not up until January, but if it keeps going this way, we will have no labor force left by then because we cannot stay competitive pay-wise.... Read more »

Charles Candiano
Charles Candiano
answered on Oct 12, 2021

This is a contract law question. Workers' Compensation is an area of law that deals with work-related injuries. Whenever BOTH parties to a contract WANT to make a changes (irrespective of reason), they certainly may.

The Union's response should be "Your hands are NOT tied...
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1 Answer | Asked in Banking, Business Law, Consumer Law and Contracts for Illinois on
Q: What does the law 15 usc 1662 b translate to? does it mean that I am not required to put a down payment?
T. J. Jesky
T. J. Jesky
answered on Oct 11, 2021

Short answer: No. The reg states that no advertisement to aid, promote, or assist directly or indirectly any extension of consumer credit may state that a specified down payment, by the creditor who advertises his services.

1 Answer | Asked in Business Formation, Business Law and Cannabis & Marijuana Law for Illinois on
Q: I want to start a cannabis business but licensing is too expensive in Illinois, how legal is it to sell cannabis clones

What is a Cannabis clone? A cannabis plant that is a genetic copy of the mother plant. When obtained from a reputable breeder, a clone is a young female cannabis plant with stable genetics. Growers typically select to raise clones instead of seeds when they would rather not risk getting a plant... Read more »

Alexander Ivakhnenko
Alexander Ivakhnenko
answered on Sep 16, 2021

No, it would not be legal as the State of Illinois requires a very strict licensing, regulation, and eligibility for any cannabis and its derivatives operation in the state.

Besides, such operation does not qualify as a Sec. 503 non-for profit entity as it would be geared towards profit...
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2 Answers | Asked in Employment Law, Estate Planning and Business Law for Illinois on
Q: Can I list a specific chapter of a fraternity as a beneficiary on a 401K?

I'm opening a 401k with my new employer and want to know if I can list my former fraternity's chapter specifically as my beneficiary or not. Assume that there will be no spouse in the picture and that the beneficiary will be updated if there is.

Charles E. Hutchinson
Charles E. Hutchinson
answered on Sep 13, 2021

I would NOT list your fraternity as a beneficiary to your 401K, but rather make other arrangements in your estate plan. As to if you can name a specific chapter in your fraternity - that could depend on the fraternity, so I cannot give you a good answer on that, you would need to speak to them.... Read more »

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2 Answers | Asked in Copyright, Business Law, Patents (Intellectual Property) and Trademark for Illinois on
Q: How am I supposed to handle a trademark infringement lawsuit if I think it's a mistake? pls read the "More Information"

Dear lawyer.

Unfortunately, I involuntarily found myself in an unpleasant situation and I would be happy for your help. I have an account at Marketplace site, where I sell products from a variety of different suppliers. A few days ago, an e-mail was sent to me from a lawyer (on behalf of... Read more »

Marcos Garciaacosta
Marcos Garciaacosta
answered on Aug 3, 2021

You can be dragged to an American court by virtue of you selling here.

There are different tools to deal with the lawsuit if you think it is an error.

You need to consult with an attorney review all the documentation you have.

Best luck!

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1 Answer | Asked in Business Law and Contracts for Illinois on
Q: I am investing in two cannabis farms, one in New Jersey and one in Pennsylvania. We need a lawyer to look over contracts

And make sure we are asking the right questions

Steve McCann
Steve McCann
answered on Jul 29, 2021

Certainly. Many of us have experience in reviewing such contracts, and would be happy to assist in ensuring your interests are protected moving forward.

That being the case, I recommend organizing everything in your possession that is relevant to this matter, including the contracts and all...
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1 Answer | Asked in Contracts, Copyright, Business Formation and Business Law for Illinois on
Q: US company refuses to Pay or give ownership. They are blackmailing me now.

In 2018, I went into an oral agreement with a person in the United States to build an online platform. I was responsible for all the tech from designs to coding etc. I live in Pakistan, we had this agreement orally over zoom.

He promised equity and delayed payment for my work. We agreed... Read more »

Marcos Garciaacosta
Marcos Garciaacosta
answered on May 23, 2021

You can sue him but it will be complicated and expensive

You may be able to sue in your country or in the USA

You should consult with an attorney to determine your options

1 Answer | Asked in Business Law, Contracts and Real Estate Law for Illinois on
Q: How much would it cost for someone to review a lease agreement for me and help me understand my rights and conditions?

This is a lease agreement with a Landlord for a Small Business. It would be great if someone can do this for free. I am having a hard time understanding a few items in the contract.

T. J. Jesky
T. J. Jesky
answered on Nov 20, 2020

This is a good question, but the answer depends on a number of factors. For example, is this a residential or commercial lease? What is the length of the lease? How long is the lease period and what is the rent? A commercial lease is much more complex than a residential lease.

I...
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2 Answers | Asked in Business Formation, Business Law and Contracts for Illinois on
Q: I am starting a in home music lesson business and I wonder if I can hire all the teachers as independent contractors

It will be teachers from major cities in different state. I wonder if they can be independent contractors instead of employees

I set up a website with paid ads that matches teachers who are looking for students with families looking for teachers to teach their kids at home. The teachers are... Read more »

T. J. Jesky
T. J. Jesky
answered on Nov 16, 2020

The question of whether someone is an employee or independent contractor comes down to "control."

Additionally, the Internal Revenue Service uses a right-to-control test to assess a business' tax liability.

For example, if these musicians had specific hours of work,...
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1 Answer | Asked in Business Formation and Business Law for Illinois on
Q: If I want to start an arcade rental business. Will it be considered illegal in any way. I would be purchasing the arcade

Technically i would own the arcade and would just be providing a rental service for those who are interested

T. J. Jesky
T. J. Jesky
answered on Oct 30, 2020

Arcade means an establishment that has five or more coin/token or other modes of activation operated amusement devices in an area dedicated to the housing of coin-operated amusement devices. Keep in mind, no alcoholic beverages may be sold or consumed in the area separate and designated as arcade.... Read more »

1 Answer | Asked in Business Law for Illinois on
Q: Who am I to this company?

If I own a Holding Company (a single member llc), and this holding company owns a subsidiary (a single member llc). Who am I to the subsidiary? (in terms of opening accounts for the subsidiary and doing things on behalf of the subsidiary).

T. J. Jesky
T. J. Jesky
answered on Oct 30, 2020

To open a bank account for just the subsidiary, you are:

The Managing Member of the Subsidiary.

Most likely, the Bank will ask you for a copy of the LLC Articles, the Operating Agreement and its EIN number.

The Subsidiary [Name] is a wholly owned subsidiary of the parent...
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