CHICAGO, Aug. 16, 2012 /PRNewswire/ -- Small businesses in Illinois have seen consistent growth despite the troubled economy. The benefits of starting a corporation or LLC have proven to be lucrative for independent contractors looking to grow their business and receive the tax savings associated with starting a small business formation. Starting a corporation does not necessarily mean that you have to add employees and overextend your financial boundaries. Of Illinois' small businesses, 77.4% of all businesses did not have employees and most employers have fewer than 20 employees according to MyCorporation – a leader in helping small business formation filings.
The most important benefit of starting a LLC or corporation is that shareholders in a corporation are not liable for corporate debts. In a sole proprietorship, the owners are personally responsible for any business debts. If the assets of the sole proprietorship cannot satisfy the debt, creditors can go after the owner's personal bank account and assets. However, if a corporation runs out of funds, its owners are not typically held liable. Corporations offer self-employment tax savings. Unlike a sole proprietorship, corporations are only taxed on salaries and not profits, which can save you thousands of dollars each year.
This is why Illinois small businesses have seen such significant growth since 2009. These businesses employed 2.5 million workers in 2009 with most of the employment coming from firms with 20-499 employees. That same year, small businesses totaled 1.1 million in Illinois and represent 98.3% of all employers and 48.9% of private sector workforce. In a corporation, there are many more ways to raise capital. For example, it can sell shares of stock and create new types of stock and investors are not personally liable for corporate debts. This makes a corporation look much more attractive than a sole proprietorship.
MyCorporation can help you jumpstart your corporation or LLC in Illinois. Small business represented 62.9% of the net new private-sector jobs from 2005-2008. At MyCorporation, starting a business is easy because each step of the process is laid out in detail so that you can focus on the details of your business, not the fine print legal specifics. To find out more about starting a small business in Illinois, contact MyCorporation at 1-877-692-6772 or visit online at http://www.mycorporation.com/.