When starting a business, you must decide under what type of business form the business will operate.  Typical business forms include the sole proprietorship, partnerships and limited partnerships, corporation (for-profit or nonprofit), S-Corporation, limited liability company (LLC), and cooperative.  The business organization laws in Illinois include those for corporations, nonprofit corporations, limited liability companies, partnerships, and associations (cooperatives).

Although the pages within this section touch on the tax implications of business form choice, the subject is discussed in more detail in the taxation section of this website.

The following generalized information should not be considered a substitute for consulting with a qualified attorney and/or accountant prior to choosing your business form.  Consulting with a professional is important because the entity you choose affects your potential tax and legal liabilities, and estate planning.  In addition, each form varies in cost and complexity to set-up. 

The Business Entity Guide for the Illinois Agripreneur, by Rich Schell, J.D., is a good place to start for a primer on business entity choice.  For those interested in learning more detail about entity choices for the farm business, the National Agricultural Law Center at the University of Arkansas published in 2002 An Overview of Organizational and Ownership Options Available to Agricultural Enterprises.  Although not specifically geared to direct farm businesses in Illinois, the overview is helpful in understanding the legal and tax implications of choosing a business form.

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