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Corporate Disputes in Cook County

corporate disputes in Cook County

The unfortunate cost of doing business

Illinois businessmen and women know that corporate disputes in Cook County are unavoidable when contract disagreements arise. Disputes can happen in other ways, too, although a Chicago corporate lawyer will litigate more contract disputes on a given day than other business issues.

Common disputes in corporate settings

Unlike small businesses, corporate disputes can escalate into multimillion dollar court battles that result in one or more entities paying another million or so in damages. Some of the more common disputes you will find in the Chicago corporate world include:

Breach of Contract

Although small breaches may result in litigation futility, larger breaches where an entire contract was violated can (and often do) result in filing civil action against an individual signor of the contract, the corporation listed, or both.

Unfair Construction of Agreements

Without an attorney reading through agreements, one party may fall victim to another’s duplicitous intent. Our firm sees many unjustly constructed contracts that could, if breached, decimate an innocent corporation.

Shareholder Disputes

Of all corporate disputes in Cook County, shareholder disagreements often have the largest rippling effect outside the workplace. Being forced out of the company you helped stay afloat during tough times can cause turmoil at home, lead to depression, or worse. Minority shareholders have legal options if oppressed without justification.

Joint Ventures

From the initial meeting between both parties until the end, joint ventures rely on two parties cooperating and communicating as they march toward their goals. Disputes may arise over simple contractual issues, or one party failing to communicate financial information to another that causes an inevitable collapse. This type of corporate dispute takes an experienced attorney if a peaceful resolution is desired.

Retain a Lawyer That Knows Corporate Disputes

Litigation regarding corporate governance, such as shareholder activism or takeover bids, are also rather common in the Windy City, although corporate attorneys work tirelessly to construct preventative measures and help corporations mitigate potential risk management problems.

Corporations in Chicago want law professionals who understand the inner workings of corporations, including governance and contractual obligations. A surprising number of simple transactions can trigger litigation, requiring quick action on behalf of all parties involved to avoid a much larger legal issue. Make sure you retain someone that knows how to resolve corporate disputes in Cook County quickly, and quietly.

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Forming a Corporation in Chicago

forming a corporation in Chicago

From C-Corps to S-Corps, here is an Illinois corporation primer.

If you are interested in forming a corporation in Chicago or anywhere in Cook County, you have undoubtedly done your homework. Forming one without a corporate attorney is risky, however, because there are many formalities that may be overlooked which could cost you down the road.

Here is a basic primer into the requirements Illinois imposes on those who wish to form a corporation. Note that several legal structure types exist.

Choosing your structure

The following corporation types are recognized in Illinois:

C-Corp

This legal entity can be formed by filing with the State of Illinois. You are entitled to an unlimited number of shareholders, and can elect a board of directors to provide oversight. C-Corporations are taxed as separate entities, and must report all losses and gains on a corporate tax return. Other points to consider before choosing this structure:

  • Shareholders are not taxed on corporate profits;
  • Post-tax dividends paid to shareholders must be reported on their respective personal tax returns;
  • Employees receive tax-free benefits; and,
  • C-Corps usually accumulate capital more efficiently than other entity types.

S-Corp

To form an S-Corp in Illinois, you must already be a C-Corp and be prepared to file Form 2553 with the Internal Revenue Service. Forming a corporation in Chicago using this structure would give you pass-through taxation, along with other benefits:

  • You can change ownership seamlessly by gifting, selling or buying stock without disrupting business;
  • Ability to secure credit or additional resources can drastically improve (subject to credit approval of business and, in some cases, personal credit reports);
  • Separation of records and finances from stockholders reduces potential for unrecognized equity liquidation; and,
  • Fractional ownership shares are accommodated in the early stages of corporate formation.

All Illinois corporations, regardless of structure, are required to file an Illinois Annual Report.

Interested in forming a corporation?

LLCs, LLPs, and non-profit organizations can also be formed in Illinois, although specific steps are required if you intend to add “Inc.” or “Corp.” at the end of your business name.

All corporation types have built-in benefits worth exploring, although the best fit for your business needs should be discussed with an experienced lawyer.

If you would like to learn more about forming a corporation in Chicago, follow our blog or contact the firm today at 773-732-7611.