What You Need to Know About Chicago Corporate Law

The Basics of Chicago Corporate Law

Having a good working knowledge of the law is important if you run a business in Chicago, IL. Corporate law is sometimes referred to as corporations law or company law and deals with the formation and operation of a business entity. Although it seems easy, having a corporate lawyer for legal assistance is the best option.

Corporate law generally deals with corporate matters and legal issues such as business formation and operating, offering legal advice, capitalization, corporate governance, financial services, succession planning, and many more.

What Is a Corporation?

A corporation is a legal entity that has been established for the purposes of conducting business. It is a different and separate entity in law from the people who create it and can conduct business in its own name, just like any other legal person. 

Corporate law often includes aspects of commercial and contract law. In a nutshell, business law includes the laws, rules, regulations, and practices that control the operation and creation of a corporation. 

As it relates to commercial and contract law, it may be defined as the body of laws that controls and regulates the legal entities that have been established for the express purpose of conducting business. 

Corporate law thus touches on the obligations and rights of people involved in the formation, ownership, operation, and management of a corporation. 

Practice Areas and Frontiers of Corporate Law in Chicago, IL

Commercial law can be broken down into several areas of practice, many of which are regularly practiced by the corporate attorneys here at The Royko Group. Some of these areas include: 

Commercial Litigation

Commercial litigation is a major practice area that most corporate law firms provide. Whether you need representation at the mediation table or courtroom or encountered any legal issue, you need the services of qualified corporate litigation lawyers. 

The best legal firms in Chicago have litigation attorneys that litigate everything from coordination of complex cases to single legal challenges for commercial clients in Illinois.

How Illinois Corporate Law Works

Business law in Chicago is regulated at both state and federal levels. Both federal laws and state laws deal with a variety of aspects of securities, employee rights, taxes, and environmental protection. 

Some of the most common corporate laws that Illinois commercial law deals with include deceptive trade practices, corporation law, employment law, securities fraud, the statute of limitations, antitrust laws, and interest rate laws.

If you are on the search for a top-rated business attorney at a reputable law firm, then The Royko Group is your best bet. We provide each new client with one free consultation from professional attorneys that will assist you with any commercial law or related matters you or your businesses may be facing. 

Illinois Business Corporation Act

Commercial law in Illinois is regulated by the Illinois Business Corporation Act, which governs the formation, operation, and dissolution of corporations in Illinois.

Formation of a Business Corporation

The formation of a corporation in Illinois usually follows the following steps:

1. Name Reservation – This is the first step in the formation of any corporation. If the name meets the requirements set by the secretary of state, the name can be reserved for 90 days after the payment of a $300 fee by the applicant.
2. Appointment of a Registered Agent – All corporations need to have a registered agent that will receive the legal papers and notices on its behalf.
3. Filing of the Articles of Incorporation – The articles of incorporation with the name of the corporation, number of shares, name of registered agent, addresses and names of the incorporators, and purpose of the entity have to be filed with the state for a fee of $150 and an initial franchise tax of $1.5 for every $1000 of capital.
4. Appointment of Directors – The company will need to appoint directors that will adopt bylaws, appoint officers, and initiate the issuance of stocks. Once the first meeting is held, the company can then get licenses and permits and issue stock.

What Does a Corporate Law Attorney Do in Chicago, Illinois?

A corporate attorney offers a broad range of legal services. When corporations hire a lawyer, they are expected to offer legal representation to the corporate entity in their corporate law matter. 

Corporate lawyers often act on mergers and acquisitions transactions, restructuring a business entity, and hiving-off of profitable sections. They also assist with tax, real estate, employee benefits, environmental, and antitrust law issues.

They advise potential clients of their rights, duties, and responsibilities under business law. They also offer legal advice on security law compliance which involves complex regulations to prevent fraud and market manipulation.

Corporate attorneys also aim to assist clients who own corporations to find capital to either build or expand their businesses, which involves public or private financing.

Current Controversies in Corporate and Securities Law in Chicago, Illinois

There are several controversies in securities and corporate law in Chicago law that are important to note when conducting business. Many of the controversies are usually discussed at the Ray Garrett Jr. Corporate and Securities Law Institute Law conference that is regularly held in Illinois. 

The event usually brings together leading officials from leading securities practitioners and high-ranking members of the Securities and Exchange Commission. It usually brings together more than 400 in-house and law firm attorneys from dozens of law firms to discuss current issues in securities and business law including but not limited to:

1. The current state of the capital markets
2. Liability and ethical issues for corporate and law firm general counsel
3. Return of the equity market and financing
4. Risk management
5. Regulatory reform
6. Dealing with shareholders in an ever-changing governance framework
7. Thawing of the M&A market
8. Current topics in the division of corporate finance
9. Securities litigation updates
10. Current development in accounting and disclosure
11. Executive compensation

If you are in search of well-recognized and professional Chicago corporate law attorneys to guide you on aspects of the law, then call The Royko Group today. 

We always recommend you contact us as soon as you experience challenges so that we can create an attorney-client relationship as soon as possible. This will help your attorney get a good understanding of your case, thus making it easier to provide the best service to you.

The Top Small Corporate Law Firms in Chicago Can Explain the Principles of Corporate Law

Corporate law has a few primary principles which are familiar to it. They include;

Legal Personality

Where owners of limited liability companies put their resources into a different entity, they can then utilize the assets and sell them if they wish. Creditors cannot take assets back but can form a separate entity that acts independently.

Limited Liability

This involves when a corporation is issued, but only its assets are at risk. Under this principle, a plaintiff can’t go after individual assets from the corporation’s owners. It allows the owners to take risks and also expand their investments. 

If an owner does not want part of their shares, it does not mean the business entity will have to close. Instead, they can transfer their shares.

Delegated Management

This is a principle of corporate law that has a defined structure in a corporation regarding how they handle their affairs. Here, the board of directors and officers share the responsibilities of making corporate decisions. As board members are in charge of hiring and monitoring officers, shareholders are in charge of electing the board, and the officers are in charge of the daily business operations.

How to Get a Good Corporate Lawyer: What Makes a Good Corporate Attorney?

When finding an attorney for your business entity, there are a few things you need to look at to ensure your business gets sufficient legal representation. So, what makes an excellent corporate attorney?

Knows the Law

Knowledge of corporate law is an essential quality of a reliable business lawyer. They also need to have conceptual clarity of the law. When litigation matters arise, experienced commercial litigation attorneys will know what they will be handling and how they should handle it per the law.

The Right Attorney Can Answer Your Chicago Corporate Law F.A.Q.s

Before you meet with a Chicago corporate lawyer, you’ll likely have numerous questions. Some of the frequently asked questions are as follows:

• What are some of the practice areas of the firm?
• What type of business entities does the law firm represent?
• How much do you charge for legal services?
• Can a corporate lawyer help me in contract drafting?
• What lawsuit preventive measures do you put in place to ensure my business is well protected?
• What is included in business law practices?
• How do I choose the correct business entity when forming a business?
• My business has been sued; what should I do?
• How can I protect my intellectual property?
• What is civil litigation?

Drafting a list of questions, both about the firm’s attorneys and your legal issue, before you first meet with your lawyer can help you prepare to get down to business.