630-466-1600

160 S. Municipal Dr. Suite 100, Sugar Grove, IL 60554

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successor, Sugar Grove business law attorneysStatistics from the U.S. Small Business Administration indicate that more than half of the country’s small business owners are over 50 years of age. Out of that number, only about 30 percent have a written succession plan for their business, and this can pose severe problems for their heirs or other successors in interest. If you are in this situation, it is generally in your best interests to consult an attorney to cement your future.

No Successor?

No one likes to admit it, but if you have a dearth of heirs or business partners that you truly trust, or if finances are not what they ought to be, selling the business as a whole may be an option for when you step down or pass away. An alternative that has been gaining popularity in recent years is to sell your interest (presumably, your controlling interest) to your employees, forming a cooperative or creating an employee stock ownership plan (ESOP). The decision must be based on what is best for you and your family and your employees, of course, but selling to employees does have one advantage: they know your brand and your product. Many employers see this option as similar to giving the business over to family given the closeness involved.

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business structure, Illinois business law attorneyDetermining how to structure a new business can feel like one of the most daunting and mundane tasks in creating a startup company, but it can also be one of the most crucial decisions. It determines who will be liable if the company goes into debt or bankruptcy, it can negatively affect the personal income taxes of owners, and the wrong decision may even limit the company’s decisions and possibilities. For these reasons, startup companies should investigate the pros and cons of each business structure and carefully weigh them against the company’s current and projected needs.

Sole Proprietorships

As one of the simplest business structures to set up, sole proprietorships are popular choices for solo businesses with few or no employees. Expenses and income are all included on the owner’s personal income tax return, which can offset income from other sources if the company experiences a loss. There are, however, some drawbacks to this business structure, namely the fact that the owner is responsible for all liabilities. They are highly susceptible to having their personal assets seized if their company goes under and decides to file bankruptcy. However, if there is adequate insurance or few assets to protect, it can prove to be an easy, low-cost solution to starting up a new business.

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630-466-1600

160 S. Municipal Dr. Suite 100, Sugar Grove, IL 60554

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