Legal Question in Business Law in Illinois

Questions regarding state laws

If I own and operate a service based consulting business in the state of Wisconsin, is it illegal for me to do business in the state of Illinois under my business name? If not how do I keep it all legal? Are there certain forms I must fill out or do I have to register with the State of Illinois?


Asked on 2/23/06, 10:28 am

1 Answer from Attorneys

Thomas Schober Schober Schober & Mitchell, S.C.

Re: Questions regarding state laws

If you are set up as an entity (Corporation, LLC, or the like), you will have to register as a foreign entity to do business in another state, if you intend to do such business there and on a regular basis. That will entail registration (and getting a local contact to serve as your registerred agent in such state)as well as tax allocation to assure the money made there is taxed there, as well. This concept is really quite complicated and is based on the legal concept of nexus, or connection.

The general area of law surrounds "doing business" in another jurisdiction. Each state has its own laws surrounding doing busines in that state. Even we, as lawyers, usually use a lawyer-only service to do such filings to be sure they are done correctly. I would suggest you connect up with a good business attorney who can help you get the answers to your particular facts as to whether what you will do constitutes "doing business" in Illinois, and if so, what you need to do to file correctly.

Often times, the penalties for failure to register are disasterous, including not even being to defend yourself in such state until you are properly registered.

In all situations, even if you are a sole proprietor, you may still have to check out that state's requirements for licensing. For example, some things that may not require licensing in Wisconsin may require you to be licensed to perform in another state or even require you to get that state's licensing before you can do so.

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Answered on 2/23/06, 12:29 pm


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