It is always an exciting feeling to see your dream business come to life. After months or even years of planning and preparation, you may be ready to launch your new enterprise. But hold on! Your preparatory work is not yet finished. Many requirements must be met before your business can begin operating. Potential business owners must have an idea of how much cash flow they will receive, and they must provide insurance to employees who have been injured or terminated, among other requirements.
Creating a Business Plan
Before you can move forward with your potential business, you will need to create a business plan to outline your ideas on how you and your business will be successful. To write an effective business plan, you will need to outline the following:
- A summary and description of what type of business you are planning to operate;
- An idea of how many employees you can afford;
- A solution to how you will market your business; and
- A budget sheet of all cash flow and expenses.
Choosing an Ownership Structure
There are several different options on how to organize your new business structure in Illinois, including the following:
- Sole Proprietorship – The Illinois Assumed Name Act requires a business owner to register with the local county clerk’s office if the name of the business is different from the owner’s full legal name.
- Limited Partnership – In these cases, a general partner will oversee business operations, and limited partners will invest money with limited liability and no involvement in everyday management. These types of businesses often include real estate, family partnerships, and equipment leasing companies.
- Limited Liability Company – This type of organization provides its owners with limited liability, flow-through tax treatment, and flexibility in operations through participating in business management. Banking and insurance businesses are prohibited from using a LLC ownership structure.
- Limited Liability Partnership – In these cases, partners are not liable for debts or other liabilities of the partnership from negligence, abuse, or malpractice committed.
- “C” Corporation – These companies may sell stock shares, easily transfer ownership, and offer limited liability of the shareholder.
- “S” Corporation – These companies will pass through income and expenses to shareholders which must be reported on their individual tax returns. The number of shareholders in this type of company must be limited.
Other Responsibilities As an Employer
Along with registering your company, there are other responsibilities that must be met before your business can open its doors. These requirements include:
- Unemployment insurance – A business must make insurance contributions to the Illinois Department of Employment Security if one or more workers has been employed for at least 20 calendar weeks or were paid at least $1,500 during a calendar quarter.
- Workers’ Compensation – Employers must provide insurance for accidental deaths, illnesses, or injuries sustained by employees during employment.
- Required notifications – Certain State and Federal posters must be displayed in the workplace.
Contact Your Illinois Employment Law Attorney
Creating a business of your own can be both exciting and daunting at the same time. You most likely have put in many years of hard work to make your business come to life. However, there are many legal requirements that must be met before your business can begin operating, and The Miller Law Firm, P.C. can assist you with any questions that you may have. If you are in the process of getting your new and potentially successful business up and running, please contact an experienced Schaumburg employment law attorney at 847-995-1205.