When a Corporate Attorney Chicago IL Offers Can Be Invaluable
If you are the stakeholder of an Illinois company tasked with recovering substantial damages after a loss, you may already be engaged in a dispute with your insurance carrier. As a result, it might be clear that without the assistance of a seasoned corporate attorney in Chicago, IL, you may not be able to resolve your claim. At Childress Loucks & Plunkett, our attorneys have assisted many clients who were in similar circumstances. It’s an unfortunate fact that insurance companies may not offer policyholders a fair settlement unless they are represented by a respected corporate attorney. We have recovered millions of dollars on behalf of our clients whose claims were valid but their insurance companies refused to honor them. We welcome you to talk with a corporate attorney in Chicago, IL from Childress Loucks & Plunkett who can review the circumstances of your case. After that review, you will have a firm understanding of how we may be able to assist your company in recovering damages from the insurance carrier. What Does A Corporate Lawyer Do?
The Nature of Insurance Claims After a Business Loss
The fact of the matter is that insurance carriers are strictly for-profit entities. During the course of their day-to-day operations they may fulfill their legal and moral responsibility to pay out moderate claims by policyholders. However, as a general rule, the more substantial the claim the more likely they will deny significant portions owed or else offer a paltry settlement that is far less than the value of the damages. During that process, a business that has suffered a substantial loss, be it vital machinery or buildings or other assets intrinsic for generating revenue, may suffer income loss in addition to the initial damages. If the claim does not result in a fair settlement, the business may be at risk for failing. This is unacceptable. If your company has suffered a substantial loss, it may be in your interest to be proactive by contacting us at Childress Loucks & Plunkett to speak with our corporate attorney in Chicago, IL.
How Should I Structure My Business to Limit Personal Liability?
One of the most important choices a new business owner can make involves formal business structure. When legally registering a business, new company owners must generally choose between four primary business structures. Although it may be worth exploring sub-categories of these four major structural types with your corporate attorney in Chicago, IL, if you are looking to start a business you will broadly need to decide between these four primary options.
The four overarching structural choices are: sole proprietorships, partnerships, limited liability companies and corporations. Each of these options hosts both potential benefits and challenges for your business. When deciding which model works best for your needs and your vision for your company, you will generally need to weigh pros and cons associated with management style, taxation and potential liability with a reliable corporate attorney serving Chicago, IL.
Sole Proprietorships and Partnerships
When individuals conduct business but have not formally registered this activity, they operate either sole proprietorships or partnerships by default. However, these business models may also serve as options when formally registering a company. Sole proprietorships are legally owned by a solitary individual, whereas partnerships are owned by multiple individuals. Business deductions and profits are handled on the individual tax returns of company owners under these models.
Many business owners are attracted to these structures because they have the most flexible management style allowed under the law. However, a corporate attorney for Chicago, IL can tell you that there is a major drawback to operating either a sole proprietorship or a partnership. Neither structure insulates an owner’s personal assets from liability in the event that the company incurs losses, is held liable for business-related wrongdoing or cannot meet its debt-related obligations. If limiting personal liability is an important priority for you, you may wish to form either an LLC or a corporation.
Limited Liability Companies and Corporations
Both LLCs and corporations insulate their members, managers and shareholders from many potential business-related liabilities, including debt, losses and legal judgments. In addition, both LLCs and corporations may be taxed in one of two ways. LLCs may choose to be taxed as a sole proprietorship/partnership (depending on whether an LLC is a sole-member or multi-member business) or a corporation. Corporations may choose to be taxed as pass-through entities (S-corporations) or as corporate entities taxed before profits reach the personal returns of those affected (C-corporations).
The management structure of LLCs and corporations is more rigid than it is for sole proprietorships and partnerships though, so if management structure is a significant priority for you, please discuss any concerns you have about these models with your Chicago, IL corporate attorney.
Legal Counsel Is Available
If you are interested in the process of asset protection generally or the process of structuring a new business specifically, please consider contacting an experienced attorney from Childress Loucks & Plunkett. Consulting with an attorney will not obligate you to take any specific action. Having this kind of confidential conversation will simply allow you to better understand any legal options that may be available to you. In addition, consulting a corporate attorney Chicago, IL will likely grant you some peace of mind concerning the future of your business, as informed and legally sound decision-making tends to help prevent regrettable outcomes.
How an Experienced Corporate Attorney in Chicago, IL Can Make a Difference
From the time that your firm experiences a loss, our corporate attorney in Chicago, IL from Childress Loucks & Plunkett can protect your best interests. Depending on the circumstances of the damages your company incurred, we can provide the following legal guidance and services:
- A detailed analysis of your current and proposed insurance coverage in relation to your potential liability and operational vulnerabilities.
- A determination of your insurance carrier’s legal obligations to honor your company’s damage claim : A thorough and well documented damage claim that we prepare and submit to your carrier.
If the carrier refuses to offer a fair settlement or will not negotiate in good faith, your corporate attorney from Childress Loucks & Plunkett will be prepared to litigate your claim in court.
Important Business Legal Terms to Know
Professionals in a broad number of regulated industries may frequently come into contact with legal counsel on a regular basis. As such, there is a demand for people who have the right skills to think clearly about possible legal issues. This is particularly important for those work in a business-related profession, or even own their own business.
By learning some of the general legal terms, professionals can become more effective in their career, and also gain a competitive edge. Furthermore, you save your lawyer time from having to explain to you general legal terminology.
General Legal Terminology for Business
Action – A lawsuit that involves one party who chooses to file a lawsuit against another. The cause of action is the foundation of a lawsuit, and may include a breach of contract or fraud.
Alternative Dispute Resolution – This refers the the utilization of a third party to assist all parties in reaching an amicable agreement and avoiding litigation.
Articles of Incorporation – Formal documents that establish the true existence of a business such as an LLC, Inc., or S-Corp. These documents include the structure of the business for tax purposes and will be needed for other formalities.
Civil Law – A general term for non-criminal legal matters. It typically applies to the settling of a dispute between at least two parties, such as private persons or organizations. Civil legal matters can be broad and include a trademark dispute, negligence, or contract dispute.
Civil liability is a type of responsibility which leaves the liable party responsible for economic and non economic damages. Whereas, criminal liability leaves the liable party open to criminal prosecution.
Contract – A legally binding agreement made between at least two parties. A contract creates duties and rights for each party involved and is enforceable by law. Contracts can be written or oral; they can be expressed or implied. Emails can be considered a contract; whereas, oral agreements might not always uphold in court. Examples of contracts include:
- Housing contract
- Sales contract
- Confidentiality agreement
- Licensing agreement
- Stock agreement
- Business partnership
Damages – Damages are awarded to a party who has suffered some sort of financial loss or injury because of the negligent, or careless, actions of another party. Many types of damages exist and may include economic and non economic damages, as well as, punitive damages.
Force Majeure – A special clause that relieves the parties involved in a contract from fulfilling their duties, due to an unforeseen circumstance that could not be reasonably controlled.
Fraud – The intentional act of deceit made by one party or another, with the intention to deprive the party of their money, rights, or property.
Injunction – A special court order that compels one party to refrain from a particularly act. Failure to adhere could result in civil or criminal punishment.
Liability – The legal responsibility for one person’s own actions. Any failure made by a person or entity to meet their obligations, duties, or responsibilities could leave them open to a lawsuit.
Malfeasance – An act that is dishonest, morally wrong, morally unethical, or illegal.
Natural Person – A term used in lawsuits to describe a human being rather than an entity, such as a corporation.
Nonfeasance – A failure to act upon a legal document or whenever legal action is mandated.
There are many more general legal terms to know about. If you have questions about any general legal terminology related to business or otherwise, please call a corporate attorney in Chicago, IL from Childress, Lockus, & Plunkett.