Have an idea for a business? Where do you start transforming that idea into a business? Determining business formation is one of the first and most important steps to starting a business in Indiana and Illinois. It can make a difference in terms of taxes, liability, profitability, growth, and more. Getting it right from the very beginning is critical.

Marcia at MFP LAW LLC will review your business idea with you and advise you on all of your best legal options. From that point on, Marcia will guide you through the process, proactively making sure you have all the forms, documentation, and other necessary information and strategies in place for a successful venture. Contact Marcia at MFP LAW LLC today at 219-356-2610 to schedule a free consultation.

Forming an Entity for Your Business in Indiana and Illinois

When forming a business, one of the first and most important decisions to make is selecting what type of entity you want to form. A business entity is the legal structure that determines business treatment for taxes, liability, and other legal rights and responsibilities. 

A range of business structures are available, the most common are:

  • Limited Liability Partnerships (LLPs)
  • Limited Liability Companies (LLCs)
  • Corporations
  • Not-For-Profit Corporations

The best business structure for your business depends on a range of different factors. 

Factors that Influence Business Entity Formation in Indiana and Illinois

Here are some factors to consider when choosing the best structure for your business. 


A major deciding factor when structuring your business is often the degree of control you want to retain over your business. This is especially true where multiple owners are involved.


Your business structure also determines the extent of your personal liability for the liabilities, debts, and obligations of the business. Some structures offer better protection against personal liability.


The structure of a business determines the applicable tax regime. Many business structures – sole proprietorships, partnerships, limited liability companies, and S corporations – are pass-through entities. This means the business doesn't separately pay tax. Instead, the tax liability is passed to the owners who pay taxes on the business profits via their personal tax returns. 

Other forms of incorporation, like C corporations, are treated as separate entities from their owners and taxed according to the relevant corporate rate. 


The degree of administration of a business typically becomes more onerous as the complexity of the business structure increases. 

Sole proprietorships and partnerships typically have the least complex paperwork, while corporations have strict reporting obligations and complex paperwork to file when forming and running the business. 

Contact Marcia at MFP LAW LLC for a free consultation to discuss your options. 

Five Important Ways Marcia at MFP LAW LLC Can Help Your Business in Indiana and Illinois

Marcia at MFP LAW LLC can advise you on a range of issues when forming a business. 

1. Choosing the Right Entity for Your Business

Choosing the right entity is the key to building a strong foundation for your business and its future growth. Marcia at MFP LAW LLC can advise you on the pros and cons of each structure available to you, relevant to your circumstances. 

This will help protect both your interests and your business's interests in the future.

2. Industry-Specific Advice

Marcia at MFP LAW LLC can give you advice specific to the industry in which you operate, as well as the product or service you're offering. This includes assisting you with understanding the applicable regulations and any necessary licenses or permits. 

3. Drafting and Negotiating Legal Documents

Business formation typically involves the preparation of a range of documents, such as business registration papers, owner agreements, bylaws, and operating agreements, and other commercial documents. Marcia at MFP LAW LLC can assist you in accurately drafting these documents. 

Importantly, Marcia can draft legally binding contracts or negotiate the terms of a contract to benefit you and your business. These are essential to many aspects of running a business, starting with your businesses' partnership agreements and/or bylaws and operating agreements which establish the relationship rights and remedies between owners the company. Marcia can also assist with employment agreements, service agreements, and more.

4. Understanding Your Tax Obligations

Failing to properly understand your tax obligations can result in significant tax liability down the track. Taxation is a complex area so engaging Marcia at MFP LAW LLC, along with a qualified accountant, is the best way to ensure compliance. 

5. Employment Law

If you hire employees, you must comply with a suite of employment laws and regulations. Marcia at MFP LAW LLC can help you navigate these laws and draft effective employment contracts that protect both you and your employees. 

Termination especially can be a legal minefield, so reliable legal advice on this is essential. 

Contact Marcia at MFP LAW LLC Today

If you are considering starting a new business in Northwest Indiana or Chicago, Marcia at MFP LAW LLC can help you make strategic decisions. Contact Marcia at MFP LAW LLC today to schedule your free consultation. You can either fill out our online form or call us at 219-356-2610. We look forward to helping make your new business a successful one.