Regardless of the nature of the type of business you are looking to establish in Illinois, you will find that there are areas involved in its operations that could potentially expose you to liability. For some types of businesses, such as those involving food service or transportation, the risks are relatively obvious, but virtually every type of business out there has at least a few areas where it might be at risk. At Howard & Hardyman LLP, we recognize that certain business structures can help protect you against personal liability, and we have helped many business owners create business structures well-suited to their needs.
Per QuickBooks, there are two main business structures that can protect you if someone sues or files a judgment against your business. The first is the limited liability company. As its name implies, a limited liability company helps protect your personal assets in the event that your business gets into trouble, and it is a relatively easy business structure to create and operate.
There is, however, a potential drawback that comes with creating a limited liability company, and this is particularly true if you are seeking business investors. In most cases, investors prefer to invest their money into corporations, as opposed to limited liability companies.
Another type of business structure that helps protect you personally is the S corporation. Though it involves a bit more red tape to operate this type of formation type, it also offers key benefits in addition to helping protect your personal assets. More specifically, it is generally easier to find investors for this type of business structure, and it also offers tax-related benefits such as pass-through taxation. You can find more about business formation by visiting our webpage.