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 Grayslake, IL

Benefits of a Limited Liability Company (LLC) in Grayslake, 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 Grayslake, IL
    Fitting Room of Elan By Bex
    11 S Lake St
    Grayslake, IL 60030
    (847) 986-9272
    General Practice Attorneys
    Dax John C
    1100 E Washington St # 201
    Grayslake, IL 60030
    (847) 918-8500
    Real Estate Attorneys, Attorneys
    David Stolman & Assoc
    70 US Highway 45 # 205
    Grayslake, IL 60030
    (847) 548-8485
    Real Estate Attorneys, Attorneys
    Anderson Law Office
    11 N Slusser St
    Grayslake, IL 60030
    (847) 223-7010
    Criminal Law Attorneys, Attorneys, General Practice Attorneys
    Hockemeyer Robert
    262 E Belvidere Rd
    Grayslake, IL 60030
    (847) 543-6910
    General Practice Attorneys, Attorneys
    Palmer-House & Alexander
    888 E Belvidere Rd Ste 123
    Grayslake, IL 60030
    (847) 548-6637
    Real Estate Attorneys, Attorneys
    Bohlman Law Offices PC
    649 Barron Blvd
    Grayslake, IL 60030
    (847) 548-6400
    General Practice Attorneys, Attorneys, Legal Service Plans
    Ron A Runkle & Assoc Pc
    236 Center St
    Grayslake, IL 60030
    (847) 548-5950
    Estate Planning Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys, Family Law Attorney
    Paul R Idlas Law Offices
    1099 N Corporate Cir Ste K
    Grayslake, IL 60030
    (847) 223-5555
    Insurance Attorneys, Attorneys, Personal Injury Law Attorneys
    Rapin Charles E
    115 Commerce Dr
    Grayslake, IL 60030
    (847) 223-2900
    Attorneys, Criminal Law Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys
    Novak Jerald
    352 Center St
    Grayslake, IL 60030
    (847) 223-2285
    Attorneys, Criminal Law Attorneys, Legal Service Plans, Traffic Law Attorneys
    Churchill Quinn Richtman & Hamilton Ltd
    2 S Whitney St
    Grayslake, IL 60030
    (847) 223-1500
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Family Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US