Business Lawyer Chicago Illinois | Starting a Small Business

Getting started with a new business is exciting, and working with a business lawyer Chicago Illinois will make the process of setting it up much easier. The Law Office of David Hyde is here to help you ensure you are taking the proper steps to set yourself up for success. Contact us today for a consultation at 312-210-9598.

Illinois is a great place to start a business. The state has a thriving economy, with plenty of opportunities for growth and expansion. There are also many resources available to help you get started in Illinois, including:

• A variety of federal and state tax incentives that can help you offset the cost of starting your own business.
• Startup programs sponsored by both private companies and municipalities throughout the state, which can provide mentorship services as well as financial assistance with rent payments while you get up and running.
• Small business incubators at universities across Illinois, where students can work on their ideas while receiving guidance from professors who specialize in entrepreneurship studies or other relevant fields such as computer science or marketing strategy.

Top 4 Things You Need to Start Your Small Business

1. Choose a business Structure

There are many reasons to carefully consider your businesses legal structure. It can determine how much liability your company faces during lawsuits. It can put up a barrier between your personal and business taxes, or ensure this barrier doesn’t exist. It can also determine how often your board of directors must file paperwork, or if you even need a board. Whatever structure you choose, the tax rates for your business, management, paperwork requirements, and fundraising abilities are impacted.

Because there are so many things that are affected by the structure, consulting an experienced business lawyer Chicago Illinois will help make certain your business is set up correctly for future success. Whether you’re considering an LLC, a partnership, a corporation, or some other entity, The Law Office of David Hyde will provide you with comprehensive and tailored legal advice. 

2. Find funding

To get funding for your business, you’ll need to figure out what kind of funding is available and how much money you need. There are many ways to do this such as business loans and business credit cards and Illinois small business grants. 

Banks and other lenders offer business loans that are designed specifically for small businesses. These loans can be used for any number of things, including purchasing equipment or paying off debtors. They generally require collateral (an asset) in order to secure the loan with interest rates ranging between 5% and 10%. 

Because Illinois has a reputation as a global business destination, there are many grants available through the state and through private companies. There are general grants available as well as those specifically for women, minorities, or particular business industries. 

There are many options for funding, but because this is a major investment, you need to be certain that you are making the right choice. David Hyde, business lawyer Chicago Illinois, will help you evaluate your financial situation and determine the most viable option for you. 

3. Registration and licensing

Registering your business name, logo and trademarks are important steps in starting a small business in Illinois.

You will need to obtain a federal tax ID number from the IRS. You will use this number on all tax documents and when applying for financing or loans. There are other entities, such as the Illinois Department of Revenue, that you will need to register with as well. 

Make sure to register your business with state and county officials by filing Articles of Organization (Form LLC-1) with the Secretary of State’s office within 60 days after forming your company. This step also includes registering for an Employer Identification Number (EIN), which allows you to pay taxes on behalf of yourself as well as employees if necessary.  

You’ll need to obtain licenses and permits for most businesses. Some licenses and permits are required by the state, some by your local government and others by both state and local governments. In Illinois, you can find information about where to go for specific types of business licenses online at the Illinois Department of Financial & Professional Regulation (IDFPR).

Nearly every city or municipality in the state of Illinois will require a general business license to operate within its jurisdiction. Each local government may have different rules or requirements. In Chicago, for example, there is more extensive business licensing depending on the industry or profession in which your business operates. In the city of Champaign only a select few businesses are required to have a license.

You may also need some licenses or permits from other agencies if your business involves any hazardous materials or chemicals, firearms, food preparation, alcohol service, selling of agricultural products, or other regulated areas.  

4. Apply for tax ID numbers

The Tax ID works in accordance with the registration and licensing requirements. There are different Tax ID’s that you may need to acquire. Employer Identification Numbers (EIN) are used by businesses that don’t have employees and are not required to withhold taxes from their employees’ paychecks. If you’re running an LLC or partnership, you will need one of these.

Federal Tax Identification Numbers (TIN) apply only if your business has employees and/or collects sales taxes on behalf of other companies, in which case they’ll give it to you as part of their contract with your company.

A business lawyer Chicago Illinois can help protect your business

Before you begin planning your small business, it’s important to understand the laws and licensing regulations of your state. The Law Office of David Hyde has the knowledge and experience to make sure you are well versed in what it takes to have a successful business in Illinois.