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


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