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


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