was the right option for me for my new side hustle. Before incorporating with the state, I did review my options. Here is a quick summary of the types of businesses I had to choose from. These summaries are by no means comprehensive. If you’re looking at launching a business, you should study before making your choice.
- Corporation – separate legal entity, can issue shares of stock, requires a few more formalities (annual report, shareholder meeting, etc.), helps limit individual liability
- LLC – separate legal entity, does not issue shares of stock, has few required formalities, also helps to limit individual liability
- Partnership – well, it’s just me to start so I didn’t go down this path too far
If you’d like to read a bit more about differences, check THIS ARTICLE OUT
paperwork for the state took me a little less than an hour. I say a little less than an hour but that’s only because this wasn’t my first rodeo. The last business I started back in 2015 was also a corporation. I spent many hours reading about requirements, instruction pages/forms, and general business books to help with the process. After completing it once, and having the process sink in a bit, this time around was a little easier. So, with registered agent identified, class and number of shares stated, and the Incorporator spelled out, I submitted my articles of incorporation to the state of Illinois. Oh yeah, I also put the $275 fee on my credit card. Other states are more cost friendly with business but at this point, setting the company up in my home state made the most sense.
The next day
I received confirmation from the state that my new business was on the books and officially recognized as its own entity. Incorporation is just the first step in a somewhat long and form filled process to get your business set up the right way. In my next post, I’ll take you through what happens after incorporation. I know you’re excited to learn more about EINs and 2553. You’ll have to control your brimming excitement until the next post!