Chicago Business Litigation Attorney’s How To Choose a Business Entity

 

The fact is, we can’t just outline what type of business entity is better than another. And anyone who tells you they can is a liar. There are so many situation and circumstances to take into consideration. But our Chicago Business Litigation Attorneys put together a list of few factors that you should think about when looking for the right type of business entity.

  • Complexity

In regards to complexity there is nothing simpler than sole proprietorship. However, the con of choosing sole proprietorship is that it will be hard for you to acquire funding from external sources. However, if you decide to have a partnership you will have to flesh out the roles and percentages of profits that need to be filed to the government.

  • Liability

How much liability is your business prone to bring? Is there a large sum of liability issues your business may run into? And if so, can you personally afford it? If you go into sole proprietorship, you have to be able to afford to be legally liable. If you cannot financially afford the liability you are subjected to you, you may want to consider a corporation.

  • Taxes

What income tax return do you want to file? Do you have a preference? Is there a way to minimize taxation? If so, how? However there are more options given to corporations, but it also has double taxation which puts you at a complete disadvantage.

  • Control

When it comes to control, sole proprietorship may be most advantageous. If you want complete control to what you please with your business and its daily operations, then you definitely should try your best to see if sole proprietorship is for you. After all the other three options all involve other parties which usually mean more compromises and less autonomy.

These are mere guidelines and food for thought. If you are serious about starting a business or on your way, you should give it some serious time and thought . Make sure you don’t start off on the wrong foot by rushing to choose your business entity type.

Please contact us at 312 419 9599 and take advantage of our free consultation.