Small Business Services
Which business agreement is right for me?
There are more than twenty different ways to legally form an organization in Illinois for the ongoing conduct of business, so it is essential you choose the right agreement to protect yourself. The three most popular and most beneficial means are a partnership, a corporation, or a limited liability company (LLC).
PARTNERSHIP
A partnership is a legal agreement between two or more people, outlining the duties, responsibilities and equity stakes of a venture. Partnership agreements are flexible and adaptable, however they do not protect the partners' personal property from the liabilities of the business venture.
Services for Partnerships Include:
- Preparing Draft Partnership Agreement
- Preparing final Partnership Agreement and overseeing its execution by all parties
- Preparing "DBA" and filing with the county
My fee for Partnership Agreements, whether for formation, buy-out, or winding down will depend upon the complexity of the transaction and the amount of time necessary to complete the transaction. Generally, this fee ranges between $500 and $1,750.
CORPORATION
A corporation is owned by its shareholders, who invest money into the corporation in return for stock. Unlike partnerships, corporations provide the benefit of limited liability, shielding the personal assets of the investors. Corporations must meet all rules, regulations, and formalities as set by the State of Illinois, most notably, the fees for establishing and maintaining a corporation. Typically, this consists of a formation fee and an annual franchise fee that varies based upon the size and capital structure of the corporation. Other requirements include the necessity of an annual meeting for shareholders, and one for the board of directors if applicable. Corporations must also keep a record of significant corporate actions and capital structure issues within a corporate record book. If these requirements are not followed, creditors may be able to reach through the limited liability benefit of a corporation, and reach the personal assets of the corporation's stakeholders.
Services for Corporations Include:
- Searching corporate name availability with the Illinois Secretary of State
- Preparing and submitting Articles of Incorporation to the Illinois Secretary of State
- Recording filed and accepted Articles of Incorporation with the county recorder
- Ordering and obtaining corporate minute book, corporate seal and stock certificates
- Obtaining, if necessary, a federal employer identification number (FEIN) from the IRS
- Preparing documentation for the corporate book, including declarations and bylaws
- Serving as Registered Agent for the first year of the corporation
My flat fee for Incorporation is $400 if my office serves as the registered agent, and $500 if not. This fee does not include the costs of the corporate book, recording fees and state incorporation fees. Rush service can be added for an additional $250. Other corporate services, such as stock redemption agreements, pre-incorporation subscription agreements, SEC and State Securities filings, non-compete agreements, non-disclosure agreements and buy-sell agreements are separate or additional services, and their cost will depend upon the complexity of the work requested and the amount of time necessary to complete the requested work.
LIMITED LIABILITY COMPANIES
A Limited Liability Company (LLC) is designed to combine the benefits of both a partnership and a corporation, allowing for a management style similar to a partnership (no shareholder or stock requirements), while providing the limited liability protection of a corporation (shield against personal assets). The drawbacks to an LLC structure is that they are relatively untested in the courts, require complex shareholder agreements, and higher attorney and state fees required to set-up and maintain.
Services for LLCs Include:
- Searching LLC name availability with the Illinois Secretary of State
- Preparing and submitting Articles of Organization to the Illinois Secretary of State
- Recording filed and accepted Articles of Organization with the county recorder
- Drafting Membership Agreement
- Serving as Registered Agent for the first year of the company
My fee for LLC formation will range between $400 and $1,500, depending on the complexity of the organization and whether or not my office serves as the registered agent. This fee also includes the following costs: company book, recording fees and state formation fees.
REGISTERED AGENT SERVICES
I may also serve as a Registered Agent for your corporation for an annual fee of $150. This fee includes the preparation of your notice and meeting forms, annual minutes and the filing preparation of the annual report for the State of Illinois.
