In Illinois, prospective business owners review the different types of businesses when starting a new venture. The business type determines several aspects of the business, including how the owner pays taxes. The way the owner operates the business determines how much insurance they need. A business lawyer helps new owners navigate the red tape.
Establishing a Sole Proprietorship
Establishing a sole proprietorship doesn’t require a business license in most cases. The name of the individual is used as the business name. However, business owners who want to use a specific name for the business secure a business name and take steps to prevent others from using it.
Reviewing Tax Implications
Sole proprietors manage their own state and federal income tax payments. Typically, the payments are calculated quarterly and submitted to the IRS. All receipts for the payments are kept by the business owner and added to the tax return at the end of the year. To review more tax implications learn about business attorneys now.
Will You Hire Any Workers?
Some small businesses hire assistants to help them with daily tasks. The law requires any business owner who hires more than two workers to purchase worker’s compensation insurance. The insurance coverage pays for any injuries resulting from an on-the-job accident. The coverage pays for medical expenses and provides the workers with monetary benefits to replace their lost wages. Federal laws require the business owner to purchase and maintain coverage for as long as they employ others.
Will You Purchase a Business Location?
Some small business owners purchase or rent a small shop or office space for their business. If they purchase the space, they need an attorney to help them protect their rights in the real estate transaction. If they are just renting, it is wise to allow the attorney to review the lease for unfavorable terms.
Insurance Requirements for Your Small Business
The business owner needs liability coverage if they allow others to come to their location or if they sell products directly to the public. The insurance protects against potential on-site accidents and product liabilities.
In Illinois, prospective business owners review the steps for establishing a small business. It is a standard process, and the owner uses their own name as the business name. The license they choose determines how they pay their taxes and if they hire workers. Business owners who need legal assistance can contact Shakfeh Law to hire a lawyer right now.