If you are just starting your business, you may think that you want to form an entity of some kind. How do you decide which form is best for you? Talking to an attorney about your options is the best way to start. There may be tax consequences that you should consider, and other general legal principles, before you pick the right format for your future business.
There are many attorneys and online companies who will form an entity for you at your request. I will not form an entity for a client without meeting to discuss the reasons for formation. For a small business person, an entity may be unnecessary and potentially cost prohibitive. An Illinois Limited Liability Company (LLC) has formation and annual maintenance fees of $500+. Corporations have yearly formalities that must be maintained in order for any liability shield to hold up under court scrutiny. Even a partnership needs to have an agreement in place regarding future dealings with assets.
All too often I encounter clients who formed an entity without consideration of any of these issues. They have paperwork that does not mean anything to them, and years of missed annual reports that would be useless as a defense if litigation were to occur.
The best path to future peace of mind is proper planning. Instead of forming an LLC because John at the bar said it is what everyone needs, take time to consider your options carefully now and you will make the right decisions for you.
I can assist with entity formation, annual filings, and serve as a registered agent. Or, I might tell you that no entity is needed for the business you intend to conduct and send you on your way with your money still in your pocket.