Establishing a Sole Proprietorship in Illinois – What Every Business Owner Should Know

Web Admin - Friday, December 15, 2017
Illinois employment law attorneysStarting a business can be a massive undertaking, and it all begins with deciding how you will structure it. For those considering a sole proprietorship, an in-depth understanding of the risks and process is crucial. Learn more, including how an attorney can provide the added protection and experienced assistance that is needed, from the following information.

Is Sole Proprietorship Right for Your Business? 

Before making a final determination on whether a sole proprietorship may be appropriate for your start-up company, consider all the elements of this business structure carefully. For example, one must understand that sole proprietorships are for businesses with only one owner. Partnerships and corporations must register their businesses in other ways. Second, know that there are more liability risks for sole proprietorships. If your business is in a high-risk industry, a sole proprietorship may not be the most appropriate business structure. Alternatively, if your business is at a low risk of experiencing a lawsuit, a sole proprietorship could offer you numerous benefits. 

First, sole proprietorships do not have to legally register as a business with the federal government, and that can save you a substantial amount in the startup of your business. Depending on your situation, the pass-through taxation of sole proprietorships may also serve as a benefit for your budding business. However, this is not always the case. Advice from an experienced attorney and a CPA is highly recommended for those considering this structure for their business. 

A Closer Look at the Risks of Sole Proprietorship

Starting a business is almost always risky, but those starting a sole proprietorship hold all the liability if their company goes under. That means you – the owner – would be liable for any debts that the company incurred. You would also be liable if an employee was injured on the job, or if they filed a legal complaint against your company. Thankfully, it is possible to take preventative action against many of these risks, as well as many others. 

Contact Our Crystal Lake Business Law Attorneys 

Whether you need assistance with deciding which business structure may be most appropriate for your company or want an in-depth analysis of the possible risks your business could face in the future, Drost, Gilbert, Andrew & Apicella, LLC can help. Committed to your best interests, our experienced Crystal Lake business law attorneys take a preventative approach to protecting your company’s financial future. Schedule a personalized consultation to get started. Call our offices at 847-934-6000 today.

Ken ApicellaAbout the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.



Recent Posts


real estate closing employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys landlord tenant law Do Not Resuscitate texting while driving Arlington Heights Attorney Inverness accident lawyer Illinois medical malpractice claim Chicago biking tips Palatine employment attorney Illinois motorcycle accident lawyer Schaumburg real estate lawyer Rolling Meadows boating crash lawyer Mount Prospect wills and trusts lawyers employee misclassification civil litigation attorney TBI Illinois employee rights attorney. comparative negligence Crystal Lake accident attorney South Barrington real estate lawyer Mount Prospect real estate lawyer Barrington personal injury lawyer denied insurance claim construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation employment attorney subcontractor Crystal Lake medical malpractice attorneys Des Plaines collections attorney insurance adjusters Barrington employment attorney medical malpractice Chicago car accident lawyer Schaumburg drug defense lawyer criminal law Rolling Meadows corporate lawyer Des Plaines personal injury lawyer insurance agents appealing an insurance claim Crystal Lake insurance lawyer vacation home fines traffic offenses Illinois real estate lawyer Inverness real estate lawyer murder defense Illinois business lawyer swimming pools Deer Park motorcycle accident lawyer Illinois workplace discrimination attorney Deer Park employment law attorney Illinois estate planning attorney commercial real estate living trust vs will Barrington Traffic Lawyer estate planning trusts fiduciary rule Des Plaines accident attorney elder law Illinois traffic attorney financial advisors Illinois employment attorneys Crystal Lake personal injury lawyer Arlington Heights lawyer Illinois criminal defense attorney pedestrian accident Family Medical Leave Act employment contract Arlington Heights employment law attorneys driving Barrington workers compensation attorney involuntary manslaughter Arlington Heights personal injury attorney college kids ACA Des Plaines injury law firm criminal record rollover accidents Arlington Heights trucking lawyer controlled substance digital assets reckless homicide Illinois DUI attorney Illinois employment lawyer gift taxes pedestrian injuries, pedestrian fatality Illinois rollover accident lawyers drug crime Palatine workers compensation lawyer Thanksgiving Barrington business law firm loopholes Crystal Lake traffic lawyer Des Plaines criminal attorney Attorney Ken Apicella wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Illinois traffic attorneys Illinois corporate lawyer health insurance dispute car crash injuries icy parking lots license suspension overtime violations Landlord Tenant Ordinance Palatine Attorney Illinois employment laws Palatine injury attorney insurance denial appeals Illinois boating accident lawyer IRELA insurance dispute attorney accidental death benefits Barrington employment law attorney insurance claim denials texting and driving estate planning Arlington Heights wills and trusts lawyer Barrington estate planning lawyer Palatine trusts lawyer Des Plaines motorcycle accident attorney Arlington Heights insurance attorney POA Legal Info Illinois traffic laws pregnant women workplace sexual harassment Illinois car accident attorney surgical mistakes Fourth of July traumatic brain injury Crystal Lake bike accident lawyer Des Plaines civil attorney Palatine traffic lawyer insurance disputes crossover accidents Crystal Lake business law attorneys pedestrian accidents traffic laws creditors Long Grove real estate lawyer Schaumburg corporate attorney Illinois home inspection Illinois red light cameras Schaumburg estate attorney Schaumburg criminal attorney sole proprietorship Illinois wills and trusts Illinois speeding lawyer pet bites insurance dispute Rolling Meadows Attorney Inverness injury lawyer taxes underinsured motorist Fair Labor Standards Act Schaumburg employment attorney Des Plaines personal injury attorney Crystal Lake law firm dram shop law Illinois personal injury lawyer probate trusts traffic accidents estate plan child safety Illinois personal injury motorcycle accident Schaumburg personal injury lawyer Illinois small business Illinois LLC creation DMV Palatine estate planning lawyer drugs Rolling Meadows personal injury lawyer Barrington estate planning attorney Illinois registered agent Mount Prospect elder law attorney tax attorney insurance claim denial employment lawyer Buffalo Grove probate lawyer Illinois driving without license Inverness traffic law firm Palatine employment lawyer traffic violations defense Rolling Meadows insurance dispute lawyers Inverness personal injury attorney Buffalo Grove employment lawyer Federal Food Drug and Cosmetic Act insurance attorney Rolling Meadows tax attorney Chicago insurance claim attorneys automated cars Des Plaines Traffic Lawyer digital evidence Rolling Meadows insurance lawyer workers compensation motorcycle accident lawyer Arlington Heights wills and trusts lawyers BUI Rolling Meadows real estate attorney Buffalo Grove car accident lawyer Self-Directed IRA Accounts premises liability Crystal Lake traffic attorney whistleblower protections meal breaks internet landlord Schaumburg Attorney truck collisions Crystal Lake employment law attorney Rolling Meadows criminal lawyer Illinois insurance claims lawyers Illinois personal injury lawyers revenge porn Riverwoods estate planning lawyer personal injury accidents Schaumburg estate planning lawyer Inverness DUI lawyer construction accidents Illinois collections attorney Jay Andrew Arlington Heights pedestrian accidents Illinois elder law attorney problem employees traumatic brain injuries healthcare claims Class A misdemeanor Schaumburg insurance lawyers traffic tickets Deer Park workers compensation lawyer Chicago lawyer Schaumburg estate attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Arlington Heights personal injury lawyer liens Kenilworth estate planning lawyer Rolling Meadows personal injury lawyers Transfer on Death Instrument Chicago employment lawyer Whistleblower Claims insurance claim dispute attorney license reinstatement Buffalo Grove personal injury lawyer drunk driving Illinois Workers’ Compensation Commission Palatine construction attorney unpaid assessment trucking accidents Schaumburg traffic lawyer Buffalo Grove medical malpractice lawyers Detainer Actions bad faith insurance claims Illinois traffic ticket lawyer underfunded trust Illinois insurance lawyer Illinois lawyer rest breaks probate process trench injuries probate fees caretaker rights foreclosure home inspection lawyer Crystal Lake pedestrian accident lawyer pay when paid contract job lawyers Crystal Lake criminal defense attorney Des Plaines pet law attorney Chicago traffic lawyer brain injury real estate lawyer life insurance eluding a police officer Illinois will lawyer natural gas Colin H. Gilbert personal injury claim cell phone overtime pay back injuries right to work Kenilworth estate planning attorneys Illinois estate planning breathalyzer test Barrington drug crime attorney Palatine law firm Chicago estate planning lawyer Forcible Entry homestead rights estate planning for college students elder abuse commercial leasing independent contractor bicycle dooring accidents insurance claim hiring employees Rolling Meadows business lawyer slip and fall accidents slip and fall denied insurance claims wage theft gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys suspended license Illinois insurance dispute lawyers estate planning lawyer healthcare employee discrimination Rolling Meadows medical malpractice lawyers Rolling Meadows Traffic Lawyer CAM drug possession special needs trust insurance negligence Barrington Illinois estate planning lawyer agent personal injury attorney Schaumburg car accident attorney Buffalo Grove personal injury attorney LLCs Palatine insurance lawyer IRS Palatine civil attorney Arlington Heights medical malpractice lawyer Illinois probate lawyer life insurance policy Illinois trucking safety Illinois medical malpractice lawyers employees insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Chicago will attorney loss of consortium traffic crimes Exclusions Barrington litigation attorney Rolling Meadows marijuana attorney Crystal Lake tax lawyer Rolling Meadows estate planning attorney boating accidents breach of contract Palatine personal injury lawyer institutional trustee criminal defense Arlington Heights injury attorney estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Rolling Meadows car accident lawyers Employment Discrimination Law investment property digital media accounts, estate planning, Arlington Heights estate planning attorney, severance agreements hands free device Inverness real estate attorney Des Plaines tax law firm Deer Park criminal attorney living trust Illinois personal injury attorney advance healthcare directive GM ignition switches Crystal Lake medical malpractice lawyer Barrington injury attorney Illinois attorney Deer Park real estate law firm deed transfer bicycle accidents Illinois employment law attorney mass shooting life insurance lawyer personal injury Joliet general practice lawyers South Barrington real estate attorney Arlington Heights accident attorney compensatory time anesthesia errors Schaumburg probate attorney food poisoning medical malpractice compensation Schaumburg medical malpractice lawyer employment law Crystal Lake civil litigation lawyer probate lawyer fatal car accidents blood alcohol content pizza emoji Home Remodeling Repair Act murder charges IRA trust transfer DUI Rolling Meadows insurance attorney Illinois estate planning law firm Arlington Heights TBI attorney School Visitation Rights Act Illinois real estate criminal murder Schaumburg injury lawyer residential real estate FMLA speeding products liability auto accidents Illinois defective products attorney real estate zoning Inverness insurance attorney wrongful termination Illinois trusts attorney construction contracts Rolling Meadows Buffalo Grove traffic attorney Illinois medical malpractice attorney Buffalo Grove law firm Des Plaines medical malpractice attorney living trust benefits car crash field sobriety test license caregiver Illinois insurance claim attorney Des Plaines personal injury lawyers life insurance claims condo Illinois wrongful termination lawyer Barrington civil litigation attorney Barrington criminal defense lawyer pain and suffering car accident lawyer Rolling Meadows employment law attorneys minimum wage Illinois mortgages Illinois insurance claim dispute lawyers mortgage Schaumburg civil litigation attorney clemency car collision Crystal Lake medical malpractice law firm Buffalo Grove injury lawyer corporate law Deer Park traffic accident attorney attorney fees product liability Illinois business law atorneys medical malpractice claims fault based insurance Inverness corporate attorney trucking accident lawyers estate planning attorney cell phone tower data Illinois bicycle safety federal regulations for LLCs Arlington Heights car crash attorneys Rolling Meadows employment attorney Liquor Control Act civil litigation ObamaCare defective products lawyer trust payments cell phone accidents Policy Cancellation Illinois civil litigation lawyer blended families Crystal Lake car accident lawyer head on collisions Schaumburg elder law lawyer sexual harassment DUI defense hit and run accident Crystal Lake injury attorney Arlington Heights Traffic Lawyer small business unfunded trust Schaumburg personal injury lawyers BAIID Illinois workers compensation lawyer fiduciary rule delay preventable medical errors privacy laws senior citizens Long Grove estate planning Illinois tax attorney Des Plaines real estate attorney in terrorem provision Chicago employment attorney Arlington Heights estate planning attorney DGAA first degree murder dynasty trusts estate tax preventing accidents Illinois Probate Act of 1975 liability claims sexual images Chicago estate planning workers compensation benefits boating DUI digital information Illinois injury lawyer Deer Park accident attorney Crystal Lake personal injury attorney Arlington Heights car accident lawyer Illinois traffic accident lawyer business litigation drunk driving statistics Illinois employment law attorneys Rolling Meadows accident lawyer Schaumburg wrongful death attorney Arlington Heights real estate lawyer Rolling Meadows traffic law firm rollover car crashes operating agreements drug crimes lawyer consent to a search deadly crashes Arlington Heights traffic attorney wills Des Plaines Palatine corporate attorney Illinois insurance claim dispute lawyer rent to own real estate contracts Crystal Lake pet attorney expungement drug crimes Illinois insurance attorney medical research manufacturing medication errors Schaumburg employment law attorneys work unions Affordable Care Act Des Plaines claims law firm marijuana crimes attorney Illinois pet lawyer Arlington Heights criminal lawyer trauma after an accident rumble strips personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Long Grove estate planning attorneys Illinois pedestrian accident attorney Barrington real estate lawyer Crystal lake insurance dispute attorney bike accident Rolling Meadows DUI lawyer FSLA license revocation Chicago trucking accident attorney no contest clauses Long Grove estate planning attorney Super Mario digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Illinois Human Rights Act Deer Park medical malpractice attorney marijuana power of attorney for healthcare Arlington Heights employment attorney power of attorney Palatine traffic accidents foreclosed rental property Barrington personal injury attorney jet ski Des Plaines insurance attorney Deer Park DUI lawyer car accident lawyers Arlington Heights tax lawyer pet law Inverness civil lawyer employee rights Crystal Lake employment lawyer insurance claim dispute car accidents medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers unauthorized overtime Rolling Meadows employment law attorney paid sick leave probate claims process Illinois insurance disputes Schaumburg construction accident lawyer insurance claims Buffalo Grove criminal defense lawyer Illinois law Barrington criminal lawyer Palatine real estate lawyer Crystal Lake will lawyer Chicago insurance law firm Rolling Meadows personal injury attorney Barrington employment law firm Buffalo Grove corporate attorney spinal cord injuries real estate contract low-ball insurance settlement defective products insurance claim delay Palatine probate lawyer Deer Park traffic lawyer Illinois jet ski accident lawyer personal injury law firm Retaliatory Discharge Home Sale Contingencies Long Grove real estate attorney contracts Inverness estate planning lawyer Crystal Lake estate planning lawyer federal crimes Palatine employment law lawyer real estate privacy Rolling Meadows insurance dispute lawyers, insurance dispute Schaumburg criminal law attorney disability benefits Deer Park personal injury lawyer Palatine corporate law attorneys comp time real estate attorney Palatine civil litigation lawyer Illinois Des Plaines real estate lawyer medical marijuana personal injury lawyer vacation home employment law, Illinois employment laws dog bites spinal cord injury holiday statistics living wills IRA benefits personal injury claims Colin Gilbert unpaid overtime natural gas explosion real estate leasing distracted driving accidents Illinois Wage Payment and Collection Act jet ski accidents commercial leases Buffalo Grove traffic lawyers Palatine punch death traffic violations forming a corporation in Illinois car accident Rolling Meadows drug defense attorney Inverness elder law lawyer Schaumburg personal injury attorney filing a medical malpractice claim denial of life insurance insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys car crashes civil rights violation Des Plaines drug lawyer DUI penalities DUI attorney Palatine criminal defense lawyer traffic deaths underage DUI Buffalo Grove real estate attorney Crystal Lake car accident attorney uninsured motorist Rolling Meadows probate lawyer startup company Inverness probate lawyer Palatine business attorney Illinois employment law firm modern family estate planning Illinois Smoke Detector Act DNR Palatine elder law attorney Illinois medical malpractice case Mt Prospect Attorney Food and Drug Administration's Food Safety Modernization Act employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, new real estate form Rolling Meadows traffic attorney Illinois Sales Representative Act Des Plaines drug crimes lawyer condo association Long Grove wills and trusts attorneys ken apicella Palatine drug lawyer workers comp Chicago attorney changes to mortgage law social media after death dealing with problem employees Illinois Transfer on Death Instrument real estate attorneys Chicago will attorney, social media platforms, Illinois estate planning lawyer, insurance agent negligence irrevocable trust BAC distracted driving accident victims wills and trusts wrongful death llinois Real Estate Lawyers Association Arlington Heights wills and trusts attorneys installment contracts trustee Barrington attorney Arlington Heights wills and trusts attorney golf accidents income distribution deducation capital gains tax Barrington boating accident attorney probate claims Schaumburg estate planning attorney Illinois living will Kenilworth estate planning attorney guardianship attorney nursing home negligence Crystal Lake employment attorney pedestrian-automobile accident boating under the influence Illinois workers compensation attorney owner responsibility Barrington medical malpractice lawyers Des Plaines DUI attorney Chicago corporate attorney liability Illinois job attorney Rolling Meadows criminal attorney Illinois employment law Rolling Meadows litigation lawyer PTSD Illinois wills and trusts attorneys Illinois construction accident attorney Buffalo Grove insurance claim dispute lawyers Illinois workplace lawyer insurance denials