Legal Question in Business Law in Illinois

Re: Corporation

Quite possibly. It depends on many factors including what the acquaintance's agreement says, what his role is in the former corporation, what the new corporation does, etc... At the very least, you might get sued, and even if you win you may have substantial legal fees.

You should consult with an attorney on the specific facts before you commit to becoming involved.

David K. Staub, an Illinois business attorney

Re: Corporation

At a minimum, the non-compete clause would have to be reviewed by an attorney before an opinion could be provided.

Re: Corporation

It would depend on whether this corporation you plan to create would be something that would cause your acquaintance to be in violation of his non compete agreement. If this company is going to be competing with your acquaintance's employer, that sounds problematic. You really need to have an attorney review the non compete agreement and advise you as to whether this idea is a good one.

Re: Corporation

You might already be aware of this, but one thing which no one has pointed out to you is that if your acquaintance is the sole shareholder, he is the only one who owns the company--you will own nothing if you are not a shareholder.