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


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