To change the legal structure of your business in Illinois, you will need to follow the necessary steps outlined by the Illinois Secretary of State. The specific steps you will need to take will depend on the type of legal structure you are changing to.
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Choose Your New Legal Structure: Before you begin changing the legal structure of your business, you should decide what new legal structure you want to have. Examples of legal structures include sole proprietorship, partnership, limited liability company, and corporation.
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Register Your New Business Entity: Once you have decided on your new legal structure, you will need to register your new business entity with the Illinois Secretary of State. You can do this online, by mail, or in person.
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Obtain Required Licenses and Permits: Depending on the type of business you are operating, you may need to obtain new licenses or permits for your new legal structure. You should research and understand the requirements for your new legal structure in Illinois.
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Notify the IRS: You will also need to notify the IRS of your new legal structure and obtain a new Employer Identification Number (EIN) if necessary.
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Update Your Business Name and Tax ID: If you change your legal structure, you may need to change your business name or tax ID number. You should check with the appropriate agencies to ensure that all necessary updates are made.
It is important to note that changing your legal structure may have tax and legal implications, and you should seek the advice of a tax professional and/or attorney before making any changes. Additionally, if your business has contracts or agreements in place, you should review them carefully to ensure that the changes do not violate any terms.
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