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Illinois Business Formation Questions & Answers

1 Answer | Asked in Business Formation for Illinois on

Q: Hi, I have signed a partnership on an LLC with another partner 50/50 but we have not filed anything with the IRS.

Are these documents valid in court and am I still considered a legal partner?

Michael R. Smith answered on Sep 8, 2019

To find out if the documents you've signed are valid and actually make you a member of the LLC or give you any interest in the LLC, you'll need to consult an Illinois business law attorney who will need to see the documents. However, no documents need to be filed with the IRS to create a limited... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: Do I need to be a LLC or similar? As an independent contractor Process Server I want to protect myself, home, car etc.?

I use my own car and am paid 1099 in my own name. In case of an issue during the serve or an auto accident while working I want to protect my family, house, cars etc from litigation/responsibility.

Michael R. Smith answered on Aug 21, 2019

As an Indiana attorney, I'm not familiar with Illinois rules governing process servers, so I can't tell you if there are any specific provisions of those rules that might affect the answer to your question. But I can answer your question as a general matter.

As long as the LLC is properly...
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1 Answer | Asked in Business Formation and Contracts for Illinois on

Q: I received a call from an IT company . Demanding payment. Can they do this?

I did pay for their service several years ago but did no business with them afterwards. They indicated the service has been continued as the contract indicated auto renewal. They wanted $999.99 a year since 2016. They offered to settle for several lesser amounts and wound up settling for $199.99... Read more »

Peter M. LaSorsa answered on Jun 12, 2019

It would depend on the terms of the agreement you signed. And it would also depend on how they were taking payment from you and if they can prove you were given services or the services were available to you during that time. You should seek an attorney to review your agreement--pay the hourly... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: If I get a loan, do I need a promissory note too?

T. J. Jesky answered on Oct 26, 2018

You can obtain a loan without any paperwork. For example, a co-worker asks to borrow $20 until next Friday. You make the loan and the co-worker pays you back next Friday. No worries. However, it is always a good idea to have some paperwork that documents what took place and what is expected.... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: What should we do if my business partners and I disagree about the basic business structure setup for our restaurant?

T. J. Jesky answered on Oct 1, 2018

I always tell my clients that you want an odd number of Directors on the Board of Directors. Too many times an even number of Directors face a stalemate, where no decision can be made. Perhaps that's the solution to your problem. You need an odd number of partners, where your Articles of... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: How do you start a non-profit organizations? What legalities do you need to be concerned with a national organization?

We are looking to incorporate under the Alliance of Medical Education Professionals (AMEP). The group will provide membership to administrators across the medical specialty spectrum and provide numerous resources related to education, networking, professional development, etc.

T. J. Jesky answered on Sep 4, 2018

The actual incorporation of Alliance of Medical Education Professionals is a very easy process. You need to file as nonprofit organization, also known as a non-business entity or nonprofit institution with the Secretary of State. It is just a matter of filling out some very easy forms and paying... Read more »

1 Answer | Asked in Contracts, Employment Law, Business Law and Business Formation for Illinois on

Q: I have a non-solicitation agreement as a contractor in Illinois. I would like to start an LLC under my wife's name.

Would I be in violation of that non-solicitation agreement if she is the owner of the business that will directly compete with my current employer? I will definitely be working for this new company. The non-solicitation agreement expires after 2 years. Thank you!

Steve McCann answered on Feb 13, 2018

Yes, it is highly likely. However, a definitive answer is dependent on the precise language of the non-solicitation agreement with your previous employer. That being the case, I recommend organizing the non-solicitation agreement and any other information you believe is relevant to this... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: What factors should be considered in choosing the type of business form for my business?

Steve McCann answered on Sep 18, 2017

There are numerous factors to be considered prior to forming your business, however one must know the type of business, your business plan, and goals prior to providing you with a comprehensive answer. Thus, I would recommend organizing all information relevant to your new business, and consult... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: What should I do to get started incorporating my new business?

Richard Michael Gee answered on Aug 21, 2017

I would recommend talking to an attorney about whether it makes more sense for you to incorporate or form an LLC from a tax and liability standpoint. Based on those answers, you can then decide whether to incorporate in Illinois or some other jurisdiction.

1 Answer | Asked in Business Formation for Illinois on

Q: How do I know if I should create an LLC for my company? What are the downsides?

John L. GreenLeaf Jr. answered on Aug 3, 2017

This question is very complex for a short answer. Some general considerations are: do you need protection of your personal assets from potential business debts or liabilities; are there investors who do not wish to participate in the day to day activities but wish to invest and share in profits or... Read more »

1 Answer | Asked in Business Formation for Illinois on

Q: I have an MBA. Do I still need an attorney to help me file business formation paperwork?

Vincent Anthony Incopero answered on Mar 30, 2017

There's more to the process than simply filing the articles,and that is the easiest part of the process. Keep in mind that there are plenty of attorney's that are not capable of property and thoroughly establishing an entity. You would be well advised to work with an attorney that has a thorough... Read more »

1 Answer | Asked in Business Formation, Business Law, Contracts and Products Liability for Illinois on

Q: i need contract so i can be safe to get product as agreed after i pay freelancer in Venezuela,(im not from Venezuela)

what best method to be protected? and from which country to get lawyer?

Steve McCann answered on Mar 7, 2017

If you are conducting business in the US, I highly suggest you obtain a lawyer from the US. Many of us offer free consultations, so it will not cost you anything to obtain a professional's opinion that is tailored to the specific facts of your case.

1 Answer | Asked in Business Formation for Illinois on

Q: What do I draft up to give part ownership of a company I just started to my Dad?

Vincent Anthony Incopero answered on Feb 23, 2017

If the company is an "C corp." or "Subchapter S" corporation, you would transfer stock. If the company is an LLC, you would transfer membership units. Membership units are not technically stock or shares but perform the same legal function. You should consult a business formation lawyer to assist... Read more »

2 Answers | Asked in Business Formation, Business Law and Construction Law for Illinois on

Q: Is the "Home Repair and Remodeling Act" in Illinois still in effect?

I'm looking into starting up a small carpentry business. Just want to make sure I know what exactly needs to be done to prevent any Issues that may arise, as best as I can.

Steve McCann answered on Feb 20, 2017

Yes, it is certainly still in effect, and is the source for a great deal of litigation in Illinois. If you are contemplating starting a carpentry business, I would highly recommend you consult with an attorney prior to doing so, as it will save you a great deal of time, stress, and money in the... Read more »

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1 Answer | Asked in Business Formation for Illinois on

Q: I am buying a pre-existing business - do I need to form my own company to do that?

Mazyar M. Hedayat Esq. answered on Jan 13, 2017

There are 2 primary ways to buy an existing business:

(a) Stock Purchase

(b) Asset Purchase

These are very different ways of buying. In a Stock Purchase you step into the shoes of the existing business, including any negative history or events. In an Asset Purchase you are...
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1 Answer | Asked in Business Formation, Business Law, International Law and Trademark for Illinois on

Q: Starting a business. Company in Thailand is already using same name in a related field. Can I use the name or no?

Looking to start a business. Initial research indicated that the name selected was unused. Bought domain. Further research uncovered a company in Thailand using the same name in virtually the same field. Overlap in business/target market unlike as they're in Thailand and I'm in US but not... Read more »

Glenn B. Manishin answered on Jan 11, 2017

Trademarks and trade names are jurisdiction-specific. If the name is not used or registered in the US, you are free to use it here...but of course no in Thailand.

2 Answers | Asked in Business Formation for Illinois on

Q: If I plan to issue stock in my company, should I form as a corporation or something else?

Glenn B. Manishin answered on Dec 20, 2016

The issuance of "stock" implies for lawyers a "C corp." or "Subchapter S" corporation. Alternatives like an LLC entity allow sale of ownership interests that are not technically stock or shares but perform the same legal function. You should consult a business formation lawyer to consider the... Read more »

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1 Answer | Asked in Business Formation for Illinois on

Q: My commercial property is owned by an LLC that we set up.

I’ve gone and purchased another building out of state — should I use the same LLC for that one, or form a new one if the other state?

Mazyar M. Hedayat Esq. answered on Nov 23, 2016

You ask if you should create a new limited liability company (LLC) to own and manage an out-of-state building (commercial?) that you recently acquired.

There is no one "right" answer to this question, but I recommend you look into either the creation of a new LLC (it may have to be formed...
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1 Answer | Asked in Business Formation for Illinois on

Q: Me and 5 friends would like to start an llc for the purpose of pooling our money for trading stocks. Is this legal?

I would be managing partner and handle all trade decisions. Would this mean I would need to be an accreditted investment advisor?

Ray Beckerman answered on Sep 5, 2014

Yes it's legal. I can set one up for you, and provide a draft operating agreement.

1 Answer | Asked in Business Formation for Illinois on

Q: I have my ein# for my llc but what number do i put in for line 7 on reg-1?

Is this the file number given on the llc-5.5 form filed with illinois?

Burton A. Padove answered on Jul 22, 2011

It is the number assigned to your LLC by the Secretary of State.

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