Incorporations

DuPage County Business Law Attorneys

Incorporation has significant benefits during every phase of a business' life cycle. For new startups, even if the owner is the only employee and a basement is the primary center of operations, incorporation can give the endeavor legitimacy which can help attract and retain clients. When the business starts to generate income, corporations have a number of tax advantages. Once there is a need or opportunity to expand, many corporations can raise necessary capital by selling shares. During all these phases, incorporation helps shield the owners' assets from seizure, in the event of a liability lawsuit or other proceeding.

Any time is a good time to incorporate, whether the business exists only in the owner's head or it has hundreds of employees. At the Law Offices of Salvatore C. Miglore and Associates, our attorneys can give competent advice about the different models, as well as the advantages and drawbacks of each one. Because we serve a diverse client base, we are prepared to offer a vast array of solutions and then stand up for our clients if shareholder disputes or other problems arise.

As an initial matter, a corporation must have a name and a registered agent. In most cases, a prospective owner can reserve an available name for up to 90 days. The registered agent can either be the owner, a shareholder, the owner's attorney or a company. 

Next, there must be a business format. A traditional corporation is a good model for many businesses, because the law is very well established. Some traditional corporations include:

• S Corporation: There are some restrictive qualifications for S corporations. For example, the owners must be citizens, there can be no more than 100 shareholders, and only 25 percent of the entity's income may be from rents, royalties and other indirect sources. There are also some additional reporting and filing requirements. An S Corporation is a pass-through entity, which means that while the shareholders have tax liability, the business itself is not taxed.
• C Corporation: While both the corporation and the shareholders pay income taxes, there are no income or ownership restrictions in C corporations. There are also fewer reporting and recordkeeping requirements. Nearly all large businesses are C Corporations, especially large corporations.

Corporations generally cannot represent themselves in court, even in small claims matters, whether they are a plaintiff or defendant, so having an experienced attorney dealing with your.

More and more owners are eschewing the traditional corporation in favor of a limited liability corporation because they are simpler to set up and maintain yet have many of the same tax advantages.

• SLLC: A single member LLC, as the name implies, has only one owner. As far as the IRS is concerned, this entity is basically a sole proprietorship.
• Domestic or Foreign LLC: Just because an organization does business in a certain state does not necessarily make it an LLC under that state's laws.
• Member-Managed LLC: This is the default organization in most instances. The active, and passive, members elect a manager to run the business.

Other restrictions may apply; for example, an LLC may be limited to a particular lifespan or a particular line of business. For professionals, like accountants and doctors, some other formats might be available.

When you are ready to take the next step, contact the Law Offices of Salvatore C. Miglore and Associates at (630) 933-8400 for a free consultation. We help businesses legally incorporate in Wheaton and throughout DuPage, Will, Kane, Kendall, McHenry, Cook, Lake and DeKalb County.