Volume II - Issue No. 3 - Fall 1999

KNOW BUSINESS

There are three basic types of business entities: sole proprietorship, partnership, and corporation. The primary differences in these forms of business organization relate to liability, taxes, and ownership. An attorney can assist you in determining which entity will serve you best.

Sole Proprietorship: Assets and liabilities belong to one person. Income is subject to social security and personal income tax.

Partnership: Requires 2 or more persons. Formal agreement advised but not required. Income flows to partners to report on individual tax returns. Personal liability for debts.

C Corporation: Legally created entity. Shareholders not personally liable for debts. Earnings are taxed as are the earnings distributed to the shareholders. Must comply with several legal and accounting formalities.

S Corporation: A corporation which elects to follow a special set of tax rules. Liability protection unless owners sign as personal guarantors. Business income and expenses pass through to owners the same as a partnership.

LAWYERS MAKE THE BEST SPOUSES BECAUSE THEY KEEP UP COURTING WAYS.

L-AWFUL HUMOR

Attorney: "Judge, the Defendant repeatedly struck my client over the head with her purse. Here is the purse which I submit as Exhibit 'A'."
Judge: "Ah, yes. The accessory to the crime."

CONDO RESERVES

Two Illinois courts have held developers of condominiums liable for failing to maintain adequate reserves and concealing the need for additional capital reserves knowing that needed repairs would cost substantially more than the accumulated reserves. Buyers of condo units should beware, however. One of the courts held that the developer could relieve itself from legal responsibility by including language in the condominium declaration to limit the developer's liability.

SEE THE SITES

http://www.irs.ustreas.gov/prod/forms_pubs/ formpub.html (I.R.S. forms and information)
http://www.sos.state.il.us/ (Business, motorist, organ donor information)
http://www.kbb.com (Kelly Blue Book-used car values)
http://www.thomas.loc.gov (pending bills & Congressional Record)
http://www.illinoisbar.org/ (general legal information and research links)
http://www.creditinformation.com/ (check the accuracy of your credit report)
http://www.interest.com (mortgage market information services-lists loan providers and rates of interest by state)

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