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


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