First, I recommend consulting with a lawyer who specializes in business start ups. A good and experienced lawyer should not charge much to do the startup and you will be well-prepared for issues you have not yet encountered. Second, the filing fee for an llc in IL is $500 ($600 if expedited). You can elect S corp status with the IRS after you form the business. Again, talk to a lawyer for best results.
Consider using a Subchapter 'S' corporation if the expenses of the start-up phase would be greater than the projected income. Plus, there are other tax advantages to consider. You should sit down with a Business Law attorney (easily found on Avvo.com under Find-A-Lawyer) and sort out your best options going forward. Good Luck in your new business !
This is probably not the best place to get such specific advice, especially since your business organization will have an impact on how your run your company, its profits, etc. You really need to spend some time with an attorney who is experienced in business organizations. You are fortunate that there are many business attorneys in your area.
There are a few options to choose from primarily based upon your equity, liability, tax, current and long-term goals. Good chance a little upfront legal advice will save you time, money and frustration down the road.
Louis T. Wierenga Assisting in mitigating your business risks. www.LTWLAW.com E Ltw@LtwLaw.com The information provided is for general purposes only and should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.