Business Law FAQs 

Business Law FAQs

Spagnolo & Hoeksema, LLC, helps all kinds of businesses, real estate investors, banks, and developers in Illinois and Indiana. When you work with us, you will get an experienced Illinois and Indiana business lawyer who can provide the best possible legal representation in many different kinds of cases.

Business law can be incredibly difficult for most people to understand. To help you better understand how this area of law works, here are some answers to a few of the most commonly asked questions we hear.

Business law is essentially the legal structure under which businesses function and may include civil litigation, federal and state court trials and appeals, commercial litigation, business disputes, contract cases, construction litigation and mechanic’s liens, loan and contract disputes, will and trust disputes, real estate litigation, and collections.

Business law involves virtually every type of commercial transaction that can involve legalities. Additionally, any litigation process or courtroom trial in which a party is a business will fall under the realm of business law.

Civil litigation is any court proceeding that is not criminal in nature, usually involving car accidents with injuries, broken contracts, real estate disputes, divorces, or any other circumstances in which a person is seeking money or some other type of remedy for damages. A civil attorney could focus on general litigation, others focus on wrongful death, and some work in collections, but all are civil lawyers. Civil litigation in a business law sense most often involves matters of contract and exchange between individuals and businesses. Lawsuits address issues falling under contract law or tort law in civil courts rather than criminal courts.

Whether or not it’s a good idea to consult a business law attorney may depend largely on the nature and size of your business. For example, many businesses that are run and managed by a single person (a sole proprietor) will not require professional legal services for their formation. However, if you plan to hire employees, lease property or equipment, seek business financing, or expand to multiple locations, it is highly advised that you seek guidance from an experienced business law attorney.

The six most common options for business entities are sole proprietorships, general partnerships, limited liability partnerships (LLPs), limited liability companies (LLCs), C corporations (or C-corp), and S corporations. There are also joint ventures. A sole proprietorship is an enterprise owned and run by one person, and there is no legal distinction between an owner and the business entity, but the sole proprietor may not work alone and can employ other people.

If two or more owners will be sharing business responsibilities, you may consider a general partnership, a type of unincorporated business. Each general partner will have unlimited personal liability for the debts and obligations of the business while reporting their share of business profits and losses on their personal tax returns. LLPs, on the other hand, allow for partnership structures in which each partner’s liabilities will be limited to the amounts they put into the businesses, so should a partnership fail, creditors will not be able to go after a partner’s personal assets or income. LLCs are business structures allowed by state statute that may use different regulations, but all protect owners from personal responsibility for debts or liabilities.

C corporations are legal structures for corporations in which the owners or shareholders will be taxed separately from the entity, and the C corporation is also subject to corporate income taxation. An S corporation is a closely held corporation that makes a valid election for taxes under Subchapter S of Chapter 1 of the Internal Revenue Code, meaning that S corporations do not pay any income taxes.

Spagnolo & Hoeksema, LLC, will be able to help you make the right choice for your own unique situation. Every business entity type will have its own unique set of rules and regulations concerning the distribution of profits, taxation, asset protection, owner liability, and other issues of concern. The sure way to make the best decision when forming a business will be to bring a business plan and any other documentation to our attorney.

Make sure you contact our lawyers without delay. We will be able to help you take the proper steps, protect all of your interests, and limit any risks. Our attorneys will know how to provide the most aggressive representation you need during a difficult time.

If you are completely lost when it comes to business law concerns, you should know that you are not alone. It will be important for you to work with an Illinois and Indiana business lawyer when you have any concerns about running your business legally. Spagnolo & Hoeksema, LLC, represents scores of businesses throughout the greater Chicagoland area. You can call us or contact us online to schedule a free consultation that will allow us to look at the specifics of your case and advise you on the next steps you should take.

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