We are here to help you incorporate your business and maintain your corporate books...

If a corporation is done properly, it may limit your personal liability.  A properly formed and maintained corporation may protect you from losing personal assets like your house, car and bank accounts.  In the state of Illinois, if you do not have a corporation you will likely be personally liable or any actions done by your business. 
 

For-Profit Corporations (S corporations and C corporations):

If you have a business, you may be interested in a “for profit corporation.”  There are two main types of for profit corporations, “Subchapter S corporations” and  “C corporations.” If you use a “Subchapter S corporation” you may be able to deduct corporate losses from your personal taxes, subject to advice from your accountant.  In a “C Corporation,” the IRS treats the corporation as a separate taxpayer that files its own taxes.  Each of these type of corporations has tax benefits and burdens which can be explained to you by an accountant. 
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Not-for-profit Corporations (501c3 corporations):

Not-for-profit corporations are an option for organizations that are pursuing certain religious, charitable, agriculture, or research goals.  While Not-for-profit corporations give tax incentives that your accountant can discuss with you, not all corporations are eligible to become Not-for-profit corporations.  In addition to the necessary charitable purpose of this type of corporation, a Not-for-profit corporation also needs to be accepted by the Internal Revenue Service (IRS) to get Federal tax benefits.
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Limited Liability Corporations (LLC's):

Another option for a corporation is a Limited Liability Corporation (“LLC”).  An LLC is different from a regular corporation because it may be treated as a partnership under federal law rather than as a corporation.  Because an LLC may be treated as a partnership under federal civil procedure, the place where members of the LLC live can change which courts have jurisdiction over lawsuits.   When members of an LLC live in a state In which a lawsuit is being filed, this may prevent a Federal lawsuit from being filed against the LLC.  Instead, an LLC would be liable in the state where a member has domicile (domicile is a fancy legal word which in general refers to where a person lives, pays taxes, and resides ).  This also means that there could be different statutes of limitation (timelines/deadlines) for lawsuits being brought against the corporation from different states.  A longer statute of limitations means a longer window of liability for a business, and a shorter statute of limitations can reduce the window of liability.  The laws about making LLC’s are a bit different from state to state. While in some states, LLC’s can be not-for-profit corporations, in Illinois LLC’s are reserved for commercial use. 
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​Law Office of Franklin J. Furlett, Ltd., 335 West Wise Road, Schaumburg, IL 60193
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