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


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