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What steps should I take to legally protect my business in Illinois?

Picture of Chris Battis By   ·  1 minute read

To legally protect your business in Illinois, here are some steps that you can take:

  1. Register your business: Registering your business as a legal entity with the Secretary of State’s office can protect your personal assets from business liabilities. A Limited Liability Company (LLC) or a Corporation is the most common legal entity types for small businesses.
  2. Obtain necessary permits and licenses: There are certain permits and licenses required by the state of Illinois depending on your industry and location. Make sure you have all necessary permits and licenses.
  3. Draft and enforce contracts: Clearly written contracts are essential for protecting your business’s interests. Make sure to have a contract for any significant business relationship to ensure clarity and enforceability.
  4. Provide employee agreements: It is essential for employees to sign an employment agreement containing legal protections such as Non-Disclosure Agreements (NDA), Non-Compete Agreements (NCA), and other agreements that may apply to your specific industry.
  5. Protect your intellectual property: Protecting your intellectual property is crucial for safeguarding your business. File patents, trademarks, and copyrights to avoid theft and plagiarism of your products or ideas.
  6. Get business insurance coverage: Insurance policies can provide financial protection against various business risks such as property loss, worker’s compensation, and Professional Liability. Be sure to choose policies that are appropriate for your business needs.
  7. Preserve your records: Retain business records such as financial statements, contracts, and licenses for at least seven years. Keeping records is important to protect your business in the case of legal disputes or audits.

It is always recommended to consult with a licensed attorney to ensure that you are taking all necessary legal steps to protect your business in Illinois. Laws governing businesses can vary based on where you are located and what type of business you have. An attorney can also help you with specific legal issues that your business may face in the future or other legal requirements.