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 Homewood, IL

Benefits of a Limited Liability Company (LLC) in Homewood, 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 Homewood, IL
    Leon & White LLP
    19150 Kedzie Ave
    Homewood, IL 60430
    (708) 794-9452
    Criminal Law Attorneys,  Business Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Attorneys
    Legacy Law Group, Ltd.
    19150 Kedzie Ave
    Homewood, IL 60430
    (708) 794-9452
    Criminal Law Attorneys, Business Law Attorneys, Civil Litigation & Trial Law Attorneys, Attorneys, I
    Andrews Anthony
    18027 Harwood Ave
    Homewood, IL 60430
    (708) 922-9292
    General Practice Attorneys, Attorneys
    Ernest B. Fenton P.C.
    18300 Dixie Hwy
    Homewood, IL 60430
    (708) 365-8624
    Attorneys,  Business Bankruptcy Law Attorneys,  Real Estate Attorneys,  Bankruptcy Law Attorneys
    Michelle Broughton-Fountain
    19150 Kedzie Ave Suite 103B
    Homewood, IL 60430
    (708) 647-8053
    Family Law Attorneys, Attorneys, Legal Service Plans
    Matthias Gill
    1740 Pine Rd
    Homewood, IL 60430
    (708) 991-7811
    General Practice Attorneys, Attorneys
    Panio Law Offices
    18237 Kedzie Ave
    Homewood, IL 60430
    (888) 799-7561
    Personal Injury Law Attorneys
    Gasperec Louis S
    17926 Halsted St # 3S
    Homewood, IL 60430
    (708) 799-6480
    General Practice Attorneys, Attorneys
    Foster & Kallen
    3825 192nd St
    Homewood, IL 60430
    (708) 799-6300
    Attorneys, General Practice Attorneys
    Briones Samuel
    1912 Ridge Rd
    Homewood, IL 60430
    (708) 754-6212
    Attorneys Referral & Information Service, Attorneys, Legal Service Plans
    Edward A Tominov Ltd
    2044 Ridge Rd
    Homewood, IL 60430
    (708) 799-5800
    General Practice Attorneys, Attorneys
    Davis Lela J Law Office
    1820 Ridge Rd Ste 205
    Homewood, IL 60430
    (708) 799-5199
    General Practice Attorneys, Attorneys, Legal Service Plans
    Fairman Law Offices
    18300 Dixie Hwy
    Homewood, IL 60430
    (708) 799-4848
    General Practice Attorneys, Attorneys
    Kathy Svanascini
    18141 Dixie Hwy
    Homewood, IL 60430
    (708) 957-4664
    General Practice Attorneys, Attorneys, Legal Service Plans
    Miller Michael N
    18106 Martin Ave
    Homewood, IL 60430
    (708) 798-4495
    Attorneys, Legal Service Plans
    Vocat Cynthia J
    17900 Dixie Hwy
    Homewood, IL 60430
    (708) 922-3588
    Family Law Attorneys, Attorneys, General Practice Attorneys
    Long Terri
    18201 Morris Ave # 1
    Homewood, IL 60430
    (708) 922-3301
    General Practice Attorneys, Attorneys
    Johnson & Johnson LTD
    17450 Halsted St # 1
    Homewood, IL 60430
    (708) 799-3100
    Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Wills, Trusts & Estate Planning Attorneys,
    Gyarmathy Joseph
    920 175th St # 5
    Homewood, IL 60430
    (708) 922-2930
    General Practice Attorneys, Attorneys
    Bryan William J
    17926 Dixie Hwy
    Homewood, IL 60430
    (708) 957-2574
    Attorneys, Real Estate Attorneys
    Edwin L. Feld & Associates
    18141 Dixie Hwy Ste 104
    Homewood, IL 60430
    (312) 263-2100
    Bankruptcy Law Attorneys,  Attorneys,  Bankruptcy Services,  Business Bankruptcy Law Attorneys
    Alexis Johnson A
    18161 Morris Ave
    Homewood, IL 60430
    (708) 922-1785
    General Practice Attorneys, Attorneys
    Danielian Jason F
    18415 Homewood Ave
    Homewood, IL 60430
    (708) 487-1414
    Attorneys, Criminal Law Attorneys
    Law Office Juliassa Ruiz
    18656 Dixie Hwy
    Homewood, IL 60430
    (708) 647-1260
    General Practice Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US