Why Incorporate Here?

Some of you will arrive on this site and ask yourself, “Why should I incorporate with StartIllinoisBusiness.com?”

Here’s why:

1. It’s easier, more logical, less risk of error. Incorporating, while not rocket science is a bit difficult to keep all the details in order and get it done right the first time. Government sites are literally impossible to follow because they weren’t put together with the customer experience in mind. You’ve probably experience that already. If you don’t get it done right the first time it can be costly to re-submit changes to already filed corporate registrations with the state.

2. Reliability and experience. We’ve been incorporating companies since 1999. In ten years we’ve had a lot of experiences, all of which combined have helped us learn a lot about the incorporation process.

3. Very fair rates. Our incorporation prices have been fair from day 1. In fact, they haven’t changed from day 1. In 1999 you would have paid $195 for a Subchapter S incorporation registration with us, sam as today. Back then we were less expensive than 95% of all incorporation services. Today? Same – we are still priced lower than about 95% of incorporation services.

4. We include it for free. The big player in this business is LegalZoom. Legalzoom knows that the two most requested services in addition to the basic corporation filing are: Help with Subchapter S filing and help obtaining the EIN (Tax ID number for their business). These two services are FREE from the IRS – and yet people don’t understand how easy it is to get them. We give you the help you need for FREE with every incorporation we do. Legalzoom offers these two “extras” in ONLY the most expensive package they sell! Is that good business? For them maybe… not for you.

5. Rush service is free. Our typical turnaround time is well under 24 hours and is more like 2 hours. Look up the competition and what they’ll charge you to file your incorporation with the state within 1 day. Few include it. Some take a couple of weeks to file your incorporation with the state!

6. We want to help. With some companies – SELLING is the whole focus. If they get you on the phone they don’t want to let you off without selling you something. Trust me – we’re not only low pressure, we give you no pressure at all to complete a sale. We have this idea that you know what’s good for you and you know WHEN it’s right for you to incorporate. We’re here if you need to ask anything. No sales pitch ever, we promise.

Great Reasons to Incorporate!

Incorporation is not required. You can operate your business as a sole proprietor or in a partnership as long as you want. However, there are profound benefits to incorporating your business especially as a subchapter s or LLC entity.

Some GREAT Reasons to Incorporate Your Business:

1. If you’re not incorporated and you’re sued by someone you can lose not only the money that you have saved from your business, but all money you have ever saved, your house, your luxury items like boat or 2nd car… the courts could decide you lose it all. Not so with a corporation. In most cases your personal assets are untouchable.

2. You can establish a whole new credit line and credit rating separate from your personal credit profile. You need not rely on your personal credit to fund your business growth once you’re incorporated.

What is a Profit Corporation?

A profit corporation is a type of corporation. Another name that is often used for a profit corporation is “for profit corporation”.

A for-profit corporation is one intended to operate as a business returning some profit to the owners (shareholders, officers, members). A for-profit corporation, depending what state it was registered in and where it does business may be operated either as a stock corporation or as a non-stock corporation.

Nonprofit companies are always non-stock corporations.

Corporations are forms of business organization. A for profit corporation consists of a group of people created by law with powers and liabilities separate from its stockholders. In reality, the corporation is a distinctly separate legal entity from those that manage and own it. As such, the corporation is owner of the corporate property and is responsible for, any corporate liabilities (debt). The corporation is the entity that would be sued, and can sue some other entity or individual. Corporate management is typically accomplished through use of a board of directors and officers who are usually elected by the corporation’s stockholders if any exist.

Persons investing in the company as stockholders and company officials are usually covered against personal loss, other than what they’ve invested in the company in terms of stock bought. Corporations are governed by its “Articles of Incorporation,” and Bylaws.

In general, two corporate structure types exist:

1. A closely held corporation is one where there are a small number of shareholders who own the corporation’s shares, share transfer restrictions are likely, and the owners of the corporation are usually the board members and officers who also work for the corporation.

2. Publicly held corporations, in contrast, have shareholders who are part of the general public. Demand for corporation shares is much broader. There aren’t usually any share transfer restrictions. Shareholders are not exclusively board members and officers.

Federal tax laws indicate differences between types of corporations. The Internal Revenue Service (IRS) distinguishes between subchapter S and subchapter C corporations. A subchapter S corporation allows smaller businesses to practice “flow-through taxation” just like general partnerships. There are requirements for gaining subchapter s status such as having less than a certain amount of shareholders and limiting the class of stock to just one.

Profit Corporation Major Points

• Personal Liability of owners/shareholders is limited to amount of their investment. In other words, to the amount they invested in buying stock of the company.
• Ownership transfers easily in corporations. Some states don’t even require written notice (Deleware for instance).
• For profit corporations can exist in perpetuity regardless of death of members, officers and investors.
• Money can be quickly raised by selling stock and securities or through venture capitalists and traditional lending sources (banks).
• Management handles day to day corporate operations, investors need not be involved.
• A for profit corporation is an involved organization to operate. Required are annual meetings of the corporation’s shareholders and rather extensive record keeping.
• A for profit corporation receives double taxation. The corporation pays tax on income as it is earned, and the shareholders pay tax on income distributed to them as dividends.