Incorporating a business in Illinois

When a person is starting a business in Illinois, an important consideration is the type of entity that is best suited for the intended enterprise. Some people choose to form a corporation. In order to do so, it is important to take certain prescribed steps.

The selection of the business name is important, as it must comply with state laws regarding naming incorporated businesses. The business name must also be available and not be in use by another company. Directors will need to then be chosen and appointed, and the formal paperwork will need to be completed and submitted to the state along with the required filing fee.

Drafting and adopting corporate bylaws is a required step for incorporation. Incorporated businesses will also need to conduct regular board meetings. After the business is incorporated, stock certificates should then be issued to the initial cshareholders. A shareholder's agreement should also be drafted. Such an agreement should outline how a shareholder's interest in the corporation will be transferred in the event he or she dies, becomes disabled or wishes to leave the company. Finally, all needed licenses and permits should be obtained.

Small business planning requires careful thought and attention in order to ensure the correct entity type is chosen and that the documents are thorough. Business planning and formation can help a new company be more likely to succeed. Those who are considering forming a new business or changing the entity type of an existing one may want to consult with an attorney who can provide assistance to a client in selecting the entity type, filing the required documentation and fees and selecting the corporate name. The attorney can also help with drafting the business plan and complying with applicable state and federal securities laws.

Source: FindLaw, "How to Incorporate a Business", accessed on March 1, 2015

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