The sole proprietorship is one of the most common business structures for small firms in Illinois if you’re trying to launch your own enterprise there. One person, who is in charge of every part of the company, owns and runs this kind of firm. Here is everything you need to know if you’re thinking about establishing a single proprietorship in Illinois.
You must be the single owner of the company in order to qualify as a sole proprietor. In other words, you have total authority over every part of the company, including any gains or losses. Additionally, you are personally liable for any obligations or debts that the company may develop.
Depending on your particular business needs, you may want to choose between a sole proprietorship and an LLC (limited liability corporation). However, a sole proprietorship does not offer the same amount of personal liability protection as an LLC and is typically simpler and less expensive to establish and operate. A sole proprietorship can be the ideal option for you if you have a low-risk business and don’t foresee any significant legal concerns. An LLC might be a preferable choice, though, if personal responsibility is an issue.
Illinois does not require sole proprietors to register with the state. However, you must file a trade name registration with the Illinois Secretary of State’s office if you intend to use a name other than your own legal name for your company. Additionally, you will require an Employer Identification Number (EIN) from the IRS if you intend to hire staff. Do I Need a Business License in Illinois?
Depending on the kind of business you’re launching and where it will be located, different licenses in Illinois have different requirements. Some companies could need a license, while others might not. If any permits are necessary for your business, you can inquire with the city or county government offices in your area.
In Illinois, forming a sole proprietorship might be a terrific option to launch your own company and work for yourself. You may make wise decisions and position yourself for success by being aware of the requirements and obligations of a solo proprietor.