Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™

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

Benefits of a Limited Liability Company (LLC) in Naperville, 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.

    •   Answer Easy
    Questions
    answer simple questions online step by step
    Easy Questions, Instant Documents
    • Finish in Minutes
    • Download Immediately
    • Written by Attorneys
    • 100% Guaranteed
      Get Instant Legal
        Documents™
    Print, save or email your finished legal document immediately!
    Last Will & Testament
    Related Legal Services near Naperville, IL
    Kathleen Lane Law Offices
    608 S Washington St
    Naperville, IL 60540
    (630) 778-9982
    General Practice Attorneys, Attorneys, Legal Service Plans
    Fay Farrow & Associates P.c.
    1730 Park St
    Naperville, IL 60563
    (630) 277-9930
    Attorneys, Employee Benefits & Worker Compensation Attorneys, Labor & Employment Law Attorneys
    Greiman Beau T
    24115 103rd St # B
    Naperville, IL 60564
    (630) 369-9901
    General Practice Attorneys, Attorneys
    Divorce Financial Strategies
    475 River Bend Rd Ste 200A
    Naperville, IL 60540
    (630) 753-9895
    Divorce Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans, Divorce Assistance
    Thinking Outside The Box, Inc.
    40 Shuman Blvd Ste 320
    Naperville, IL 60563
    (630) 225-9840
    Corporation & Partnership Law Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Csukor Karl A
    190 E 5th Ave # 27
    Naperville, IL 60563
    (630) 637-9750
    General Practice Attorneys, Attorneys
    Freeman Deborah K
    608 S Washington St # 207
    Naperville, IL 60540
    (630) 961-9648
    Real Estate Attorneys, Attorneys, Legal Service Plans
    Heitz & Bromberek
    300 E 5th Ave
    Naperville, IL 60563
    (630) 687-9632
    Attorneys, Employment Discrimination Attorneys
    Heitz & Bromberek LTD
    300 E 5th Ave
    Naperville, IL 60563
    (630) 687-9632
    Employment Discrimination Attorneys, Attorneys
    Zega Robert
    1645 Apache Dr
    Naperville, IL 60563
    (630) 579-9511
    General Practice Attorneys
    Ryan & Ryan
    1555 Bond St # 103
    Naperville, IL 60563
    (630) 668-9400
    Criminal Law Attorneys, Traffic Law Attorneys, Attorneys
    Lynch Kevin
    3075 Book Rd
    Naperville, IL 60564
    (630) 904-9365
    General Practice Attorneys, Attorneys
    Ann Edmonds Law Office
    333 Center St
    Naperville, IL 60540
    (630) 420-9290
    General Practice Attorneys, Attorneys, Legal Service Plans
    Americall Group Inc
    1230 E Diehl Rd Ste 300
    Naperville, IL 60563
    (630) 955-9100
    Malpractice Law Attorneys, Attorneys
    Marker & Associates- PC
    4015 Plainfield Naperville Rd Suite 200
    Naperville, IL 60564
    (630) 923-8900
    Litigation & Tort Attorneys, Attorneys, Accident & Property Damage Attorneys, Personal Injury Law At
    David W. Senneke
    1730 Park St
    Naperville, IL 60563
    (630) 357-8887
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Real Estate Attorneys
    Burnett & Caron LTD
    1300 Iroquois Ave Ste 100
    Naperville, IL 60563
    (630) 355-8686
    Accident & Property Damage Attorneys,  Attorneys,  Automobile Accident Attorneys,  Personal Injury L
    Vlazny III Adalbert L
    608 S Washington St # 210
    Naperville, IL 60540
    (630) 357-8668
    Attorneys, Legal Service Plans
    Knobloch John
    608 S Washington St
    Naperville, IL 60540
    (630) 674-8440
    Estate Planning Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Att
    Greiman Beau T
    4003 Plainfield Naperville Rd # 207
    Naperville, IL 60564
    (630) 536-8249
    General Practice Attorneys, Attorneys
    Brian Kocsis Law Office
    222 S Mill St # 200
    Naperville, IL 60540
    (630) 355-8238
    General Practice Attorneys, Attorneys
    Karen Walin Law Offices
    23648 Royal Worlington Dr
    Naperville, IL 60564
    (630) 922-8131
    General Practice Attorneys, Attorneys
    Jagel Peter H
    209 E Jefferson Ave
    Naperville, IL 60540
    (630) 355-8070
    General Practice Attorneys, Attorneys
    Rantis Nicholas S
    1700 Park St Ste 101
    Naperville, IL 60563
    (630) 416-8000
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US