Easy Questions  
Free Legal Documents

Frequently Asked Questions about a Limited Liability Company (LLC) in Albers, IL

Frequently Asked Questions about a Limited Liability Company (LLC) in Albers, IL


The way to get started is to quit talking and start doing.
 
- Walt Disney


What is an LLC?


An LLC is a Limited Liability Company. It is a business structure regulated by state statutes. Forms and fees needed to set up and maintain an LLC differ in each state. An LLC is not a corporation, but it provides liability protection to its members.

Why Should I form an LLC?

An LLC can protect the assets of its members by limiting the liability for acts and debts of the business. An LLC also provides pass-through taxation, meaning that taxes are only paid on the personal tax forms of the owners, there is no corporate or company tax to be paid. Members pay taxes individually on their portion of the LLC profits. Compared to a corporation, an LLC is less costly and complicated to set up and maintain.

How does an LLC protect my assets?

An LLC can provide three important protections: First, members of an LLC are covered by state shield laws that limit their liability exposure. Second, the charging order often holds creditor limitations to each member's share of distribution. This means that if a member of an LLC becomes a debtor, the creditor does not get the assets of the LLC or even the debtor/member's LLC interest outright. A creditor is in fact prohibited by law from levying on the interests of an LLC, as a creditor is traditionally allowed do to the shares of a corporation. Instead, the creditor can only get a lien against the debtor/member's LLC interest. Finally, creditors are limited to each member's share of distribution and creditors cannot go after the LLC's assets to settle a member-debtor's obligation. This would protect non-debtor-members from financial loss.

What are the legal documents needed for an LLC?

A document called "Articles of Organization" should be filed with the appropriate state agency in order to start an LLC. Another document needed is the operating agreement showing the rules of the company and the rights of its members. You will also need a tax identification number issued by the IRS.

How does an LLC compare to a C or S Corporation?

"Double taxation" is experienced by the C corporations when profits and shareholder dividends are both taxed by the IRS. Pass-through through taxation is done for the S Corporation which may limit the numbers and nationality of the shareholders. With an LLC, this difficulty is not experienced. Record keeping requirements are not that taxing compared with other business structures.

What is a Series LLC?

A Series LLC refers to an LLC with different sets of interest or ownership. This is an uncommon type of structure but it can provide liability insulated divisions in a single company rather than forming multiple LLCs.

Can stock be issued by an LLC?

Being non-incorporated, an LLC cannot issue stock. It is not in any way a corporation but tax rules of a corporation can be applied to an LLC if elected -- but they only cover tax treatment. An LLC can, however, raise additional investment money by inviting more partners to join it.

How do I maintain my LLC?

Joining an LLC means you have to maintain your company's status by paying the required state taxes, maintaining good financial records, and paying any required annual franchise fees levied by the state.

How much does it cost to set up an LLC?

Paperwork fees and service fees are the only costs to set up an LLC.

How are LLC profits taxed?

An LLC is not taxed on its profits because it has the benefit of pass through taxation. All profits are pass-through proportionally to its members. The members will, in turn, be responsible to state their income on their tax returns and pay the needed taxes. An LLC is flexible enough to choose how to be taxed as long as proper forms are filed with the IRS.

Does an LLC need an EIN?

If an LLC with one or more members elects to be treated as a corporation or partnership for tax purposes, an Employer Identification Number (EIN) is needed. If a single-member LLC chooses to be taxed as a sole proprietorship an EIN is not needed, because the IRS will treat it as "disregarded entity."

What tax forms do I use when filing LLC taxes?

Sole proprietorship forms are used by a single-member LLC; partnership forms are used by multi-member LLCs. But, if the business chooses to be taxed as a C corporation it will file Form 8832; if it chooses to be taxed as an S corporation Form 2553.

Does an LLC use a 1099 Form?

The IRS uses a variety of 1099 forms. A form 1099-DIV will be used by an LLC for the payments made to each of its members. Any partner who receives $600 or more annually from the LLC will also use the 1099-DIV when filing their individual income tax returns.
 
Personalize & Print a Free IL Last Will Download 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 Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Albers, IL
Lynch Jennifer M
119 S Kennedy Dr
Bradley, IL 60915
(815) 802-9999
General Practice Attorneys, Attorneys, Legal Service Plans
Edelson Leon
PO Box 230
Deerfield, IL 60015
(847) 374-9797
Attorneys
Neil Simon
420 Lake Cook Rd
Deerfield, IL 60015
(847) 607-9649
Attorneys
Law Ofcs of Manotti L Jenkins
4922 S Cornell Ave # X
Chicago, IL 60615
(312) 208-9537
General Practice Attorneys, Attorneys
Katz Goldstein & Warren Pc
2345 Waukegan Rd Suite 150
Bannockburn, IL 60015
(847) 317-9500
Business Law Attorneys,  Arbitration Services,  Arbitration & Mediation Attorneys,  Litigation & Tor
Thollander David C
1048 Ogden Ave # 200
Downers Grove, IL 60515
(630) 971-9195
General Practice Attorneys, Attorneys
Davis Keith E
1525 E 53rd St # 628
Chicago, IL 60615
(773) 493-8700
Real Estate Attorneys, Landlord & Tenant Attorneys, Attorneys
Smith Patrick J
5116 Forest Ave # 1
Downers Grove, IL 60515
(630) 964-8450
Real Estate Attorneys,  Personal Injury Law Attorneys,  Bankruptcy Law Attorneys,  Employee Benefits
Smith Patrick J
4823 Stanley Ave
Downers Grove, IL 60515
(630) 964-8450
General Practice Attorneys, Attorneys
Chertkow Glenn
1525 E 53rd St
Chicago, IL 60615
(773) 493-8444
Traffic Law Attorneys,  Attorneys,  Real Estate Attorneys,  Transportation Law Attorneys
Dana Brisbon
PO Box 30
Dekalb, IL 60115
(815) 901-8419
Attorneys
Montville Jacqueline
515 Kendall Ln
Dekalb, IL 60115
(815) 758-8396
Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
Edyta Salata
947 Maple Ave
Downers Grove, IL 60515
(630) 310-8356
Attorneys, Family Law Attorneys, Workers Compensation Assistance, Immigration Law Attorneys
Rothschild & Alexander Law Ofc
2207 Lakeside Dr
Bannockburn, IL 60015
(847) 945-8301
General Practice Attorneys, Legal Service Plans, Attorneys
Landau & Assoc Pc
515 Ogden Ave Ste 101
Downers Grove, IL 60515
(630) 852-8282
Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law At
Cochran David S Attorney
921 Curtiss St
Downers Grove, IL 60515
(630) 852-8250
Attorneys, Elder Law Attorneys, Family Law Attorneys
D Lakhami Law Offices
4930 Main St
Downers Grove, IL 60515
(630) 442-7954
General Practice Attorneys, Attorneys
Julie A. Monberg PC
1525 E 53rd St
Chicago, IL 60615
(773) 752-7660
Attorneys, Social Security & Disability Law Attorneys, Labor & Employment Law Attorneys
Price Marc
707 Lake Cook Rd Ste 314
Deerfield, IL 60015
(847) 405-7600
Real Estate Attorneys, Attorneys
Otis Law Group LTD
1525 E 53rd St # 405
Chicago, IL 60615
(773) 363-7300
General Practice Attorneys, Attorneys, Legal Service Plans
Stuart Reid Law Office
420 Lake Cook Rd
Deerfield, IL 60015
847-317-0566
Attorneys, Legal Clinics, Family Law Attorneys, Legal Service Plans, Divorce Attorneys
Narmont John S
101 N Iris Dr
Auburn, IL 62615
(217) 438-6414
Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Legal Service Plans,
Krajewski Brian J
1547 Warren Ave
Downers Grove, IL 60515
(630) 435-6340
General Practice Attorneys, Attorneys, Insurance
Boyle Law Dekalb
301 E Lincoln Hwy
Dekalb, IL 60115
(815) 756-6328
Insurance Attorneys, Attorneys, Business Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US