Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
ESTATE PLANNING
Last Will and Testament
Living Trust
Living Will for Healthcare
 
FINANCIAL & MARITAL
Power of Attorney
Premarital Agreement
Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
BUSINESS
General Partnership
Consulting Agreement
Employee Documents coming soon!
Incorporation coming soon!
Limited Liability Company coming soon!
 

Benefits of a Limited Liability Company (LLC) in Liberty, IL

Benefits of a Limited Liability Company (LLC) in Liberty, IL


Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.
 
- Steve Jobs


A limited liability company (LLC) is similar to a Partnership but has the liability protection for the owners that a corporation offers without the formalities, paperwork and fees. All new LLCs must file articles of organization with their secretary of state's office.

You should draft an operating agreement for your LLC that spells out the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities.

The LLC structure is a good way to "wall off" your personal assets from your company's liabilities, offering protection for your personal assets in the event of a liability or judgment against your business.

A limited liability company (LLC) also has certain tax advantages. The business itself is not responsible for taxes on its profits. Instead, the LLC's owners, known as "members," report their share of business profit and loss on their personal tax returns, similar to tax reporting for a General Partnership. This is known as "pass-through" taxation.


There are many benefits to an LLC structure.

  • Protected assets: LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or General Partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
  • Pass-through taxation: LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level.
  • Heightened credibility: Forming an LLC may help a new business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
  • Limited compliance requirements: LLCs face fewer state-imposed annual requirements and ongoing formalities than S corporations and C corporations.
  • Flexible management structure: LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
  • Few restrictions: There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).


    • Potential LLC Disadvantages

    LLCs may have some potential disadvantages, including:

  • Formation and ongoing expenses: To form an LLC, Articles of Organization must be filed with the state and the applicable state filing fees paid. Many states impose ongoing fees, such as annual report and/or franchise tax fees. While these fees often are not very expensive for small businesses, LLC formation is more expensive than that of a sole proprietorship or General Partnership, both of which are not required to file formation documents with the state. A few states, such as New York and Arizona, also require LLC owners to publish notice of the LLC formation in local newspapers for several weeks. This can be costly.
  • Transferable ownership: Ownership in an LLC is often harder to transfer than with a corporation. With corporations, shares of stock can be sold to increase ownership. Typically with LLCs, all owners must approve adding new owners or altering the ownership percentages of existing owners.
  • Less precedent: Because the LLC is a newer type of business structure, there is not as much case law or legal precedent for LLCs as there is for corporations.

    •  
    Personalize & Print a Free IL Last Will Create This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Personalize & Print a Free IL Living Will Create This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Related Legal Services near Liberty, IL
    Strecker Jepson & Associates
    21020 N Rand Rd
    Lake Zurich, IL 60047
    (224) 935-9676
    Attorneys, Real Estate Attorneys
    Roux Frank G
    715 Ela Rd Ste 3A
    Lake Zurich, IL 60047
    (847) 438-9595
    General Practice Attorneys, Attorneys
    Field Eva
    2038 N Damen Ave
    Chicago, IL 60647
    (773) 227-9449
    Attorneys
    Perez Michael A
    1608 N Milwaukee Ave # 207
    Chicago, IL 60647
    (773) 772-8989
    General Practice Attorneys, Attorneys
    Gallegos Marisol
    3508 W Fullerton Ave
    Chicago, IL 60647
    (773) 235-8846
    General Practice Attorneys, Attorneys, Immigration Law Attorneys
    Frank Lopez PC
    2332 N Milwaukee Ave
    Chicago, IL 60647
    (773) 235-8826
    General Practice Attorneys, Attorneys
    Burke Kathleen R
    240 Whitney Rd
    Lake Zurich, IL 60047
    (847) 438-8744
    General Practice Attorneys
    Correa Mario
    3010 W Diversey Ave # 1
    Chicago, IL 60647
    (773) 489-8500
    General Practice Attorneys, Attorneys
    Jaskula Michael Atty
    3624 W Wrightwood Ave
    Chicago, IL 60647
    (773) 772-8335
    General Practice Attorneys, Attorneys
    Rangel Rangel & Associates
    2332 N Milwaukee Ave
    Chicago, IL 60647
    (773) 278-8141
    Attorneys, Family Law Attorneys
    Bajaj Rajeev
    3245 W Fullerton Ave
    Chicago, IL 60647
    (773) 717-7613
    Attorneys, Criminal Law Attorneys
    Deemer Law Firm
    795 Ela Rd
    Lake Zurich, IL 60047
    (847) 847-7463
    General Practice Attorneys, Attorneys
    Hardball Process Service
    830 W Il Route 22 Ste 370
    Lake Zurich, IL 60047
    (847) 773-7140
    Paralegals
    Clare Kelly A
    156 E Main St
    Lake Zurich, IL 60047
    (847) 726-7110
    Estate Planning Attorneys, Attorneys, Real Estate Attorneys
    Bell Law LLC
    2015 W Fullerton Ave
    Chicago, IL 60647
    (773) 980-6938
    Attorneys, Commercial Law Attorneys, Business Law Attorneys
    Agencia Latina
    2157 N Western Ave
    Chicago, IL 60647
    (773) 276-6642
    Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants
    Salvi Salvi & Wifler
    335 Chancery Ln
    Lake Zurich, IL 60047
    (847) 438-6153
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Criminal Defense Assoc PC
    3245 W Fullerton Ave
    Chicago, IL 60647
    (773) 747-6063
    Criminal Law Attorneys, Attorneys
    Glenn Betancourt
    2332 N Milwaukee Ave
    Chicago, IL 60647
    (773) 252-5923
    Attorneys
    Clery Jeffery M
    67 S Old Rand Rdste A
    Lake Zurich, IL 60047
    (847) 540-5403
    Insurance Attorneys, Attorneys, Legal Service Plans, Criminal Law Attorneys
    Robert L. Herst, LLC
    5915 Rfd
    Long Grove, IL 60047
    (847) 383-5024
    Business Law Attorneys, Attorneys, Commercial Law Attorneys, Contract Law Attorneys
    Wiejaczka Law
    10 Rand Rd
    Hawthorn Woods, IL 60047
    (847) 526-4909
    Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,
    Fogle Andrew R
    23202 W Lochanora Dr
    Lake Zurich, IL 60047
    (847) 438-4747
    Estate Planning Attorneys, Attorneys, Legal Service Plans, Business Law Attorneys, Real Estate Attor
    Bajaj Rajeev
    3043 W Fullerton Ave
    Chicago, IL 60647
    (773) 224-4529
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US