If you are ready to transform your product or service into a business, there are many legal and tax hurdles to tackle. Business transactions lawyers in Chicago can assist startups by handling everything from the initial structure, licensing, and registration. Some business formations available are sole proprietorship, partnerships, and nonprofits.
Sole Proprietor
Individuals looking into sole proprietorship need to weigh the pros and cons of this type of operation and submit all necessary forms to the Internal Revenue Service (IRS).
Partnership
To begin a partnership, all owners will need to settle on a name. Once selected, you must complete an exhaustive search to ensure you are not infringing on an established brand or operation. The next step is to register it.
All parties will need to hammer out legal and financial arrangements and sign contracts. This paperwork will spell out in fine detail any distributions, who are the deciding parties, and how the team should handle negative equity.
Business transactions lawyers in Chicago understand the state, local, and federal filing processes. The permitting process will vary depending on the application.
Nonprofit
If you create a philanthropic organization, the government will require you to file documents that spell out your board and nonprofit bylaws.
Not-for-profit groups need to apply for tax exemption, and the regional laws vary. Like partnerships, a nonprofit must have a legal name and register it. The treasurer must track all financial matters in an established bank account under the group’s legal name. For more information on forming a business or nonprofit, contact Zimmerman Law Offices.
