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


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