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Illinois Business Formation 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, Employment Law and Social Security for Illinois on
Q: Can i form an llc for my future box truck business while receiving benefits?

am currently 33yrs old.

Three years ago I was driving semi trucks . Stopped due to multiple surgeries (non-work-related).

Currently on Government Benefits.

Temporary Social security disability

Now present time.

Im close to being fully recuperated so its... Read more »

T. J. Jesky
T. J. Jesky
answered on Sep 11, 2022

The short answer is: Yes. Go ahead and form the LLC. Let it sit until you are ready to make use of it. Unless there is something you have not disclosed, I don't see how forming a LLC will affect your benefits. However, once income starts flowing through your LLC, it may or may not affect... Read more »

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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 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
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 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...
Read more »

1 Answer | Asked in Business Formation and Copyright for Illinois on
Q: I buy throw pillow covers (Amazon and Walmart) and enhance the imagery and sell them. Am I infringing on a copyright
Marcos Garciaacosta
Marcos Garciaacosta
answered on Sep 12, 2021

depends

It is not clear what you intent to do, you should consult with an attorney

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 Formation for Illinois on
Q: Is it legal to do aerial photography and 3d photogrammetry using a drone in IL to provide visual updates for client

I am not looking to give precise measurements, just visual inspections. Ideally would like to make this my business. I am achieving the part 107 license to fly commercially. Thus I am aware of the airspace restrictions. I am wondering about the legality of the above case.

T. J. Jesky
T. J. Jesky
answered on Nov 27, 2020

This is a good question. First, if you are law enforcement, the Illinois statutes give you authority to fly the drone almost anywhere. But, since your not law enforcement, you are somewhat restricted. The law states that you cannot use a drone to interfere with hunters or fisherman. A number of... Read more »

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,...
Read more »

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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 Formation for Illinois on
Q: I have a small business building furniture since 2018, I have not registered as a business but wanted to know

If I qualify for the SBA loan and grant program

George W. Svoboda
George W. Svoboda
answered on Jun 29, 2020

Possibly. You need to prove what your payroll cost was for the last 12 months.

2 Answers | Asked in Banking, Bankruptcy, Business Formation and Business Law for Illinois on
Q: Hello, I am a business owner. I want to know if bankruptcy is an option for me.

I am a banquet hall business owner. My bank has refused to give me relief on mortgage payments because I was already behind 2 payments due to the increase in property taxes in the county. The bank has filed for foreclosure during covid and intends to appoint a receiver in June 2020. At this point,... Read more »

Bryan R. Bagdady
Bryan R. Bagdady
answered on May 18, 2020

I can't tell from your facts if you are facing a business bankruptcy, a personal bankruptcy or both. However, it sounds like you need a mechanism to stop the litigation and to liquidate debts in an orderly fashion. That is one of the functions of a bankruptcy case. I need to know more about... Read more »

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1 Answer | Asked in Business Formation for Illinois on
Q: Does an Licensed Illinois Structural Engineer who want to start a business in Illinois as a Single Member LLC required

to form a Professional LLC ?

Steve McCann
Steve McCann
answered on Apr 23, 2020

While it is not required, it may be in your best interest to set up the entity as a Professional Corporation. In order to know for certain, an attorney would need to review the structure and goals of the business, to name a couple of considerations. That being the case, I recommend organizing... Read more »

2 Answers | Asked in Business Formation for Illinois on
Q: Need guidance with creation of Series LLC in Illinois. Need to put 3 rental properties in this.

Can I create this online and file with the state? What do I have to do? I have Hyatt Legal Plan but that does not cover this. Any guidance will be sincerely appreciated.

Cynthia Rote
PREMIUM
Cynthia Rote
answered on Feb 24, 2020

Yes. Go to the Illinois Secretary of State's website, business services division and you can find a lot of information there on how to create Series LLCs. There are certain steps you should take after creating them. For example, you will need a separate operating agreement for all of them,... Read more »

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3 Answers | Asked in Business Formation, Intellectual Property and Trademark for Illinois on
Q: I want to trademark "Trill Apparel" but "TRILL APPAREL CLOTHING COMPANY" is taken.

Our company also does clothing but we would trademark it as "Trill Apparel" and not "Trill Apparel Clothing Company". Would we be able to do this?

Jason Brooks
Jason Brooks
answered on Jan 31, 2020

Because of the substantially similar nature of your proposed mark to that already registered mark, your application would very likely be rejected by the USPTO for "likelihood of confusion." When making their decision, the Examining Attorney examines the proposed mark as a whole, and... Read more »

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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 Ray Smith
PREMIUM
Michael Ray 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... 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 Ray Smith
PREMIUM
Michael Ray 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...
Read more »

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
PREMIUM
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
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 »

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