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 Smithfield, IL

Benefits of a Limited Liability Company (LLC) in Smithfield, 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 Smithfield, IL
    Attorneys' Title Guaranty Fund
    5215 Old Orchard Rd Ste 360
    Skokie, IL 60077
    (847) 966-9560
    General Practice Attorneys, Attorneys, Legal Service Plans
    Kransen Harry J
    8424 Skokie Blvd
    Skokie, IL 60077
    (847) 676-9555
    General Practice Attorneys, Attorneys
    Lynn M. Hickey, Attorney
    16860 Oak Park Ave
    Tinley Park, IL 60477
    (708) 277-9192
    Attorneys
    Peter Francis Greraci Law Ofc
    17057 Harlem Ave
    Tinley Park, IL 60477
    (708) 614-9120
    General Practice Attorneys, Attorneys, Legal Service Plans
    A Disability Attorney
    16710 Oak Park Ave
    Tinley Park, IL 60477
    (708) 614-8861
    Attorneys, Social Security & Disability Law Attorneys, Labor & Employment Law Attorneys
    Kelley H Elizabeth
    16710 Oak Park Ave
    Tinley Park, IL 60477
    (708) 614-8861
    General Practice Attorneys, Attorneys
    Horn & Kelley PC
    16710 Oak Park Ave
    Tinley Park, IL 60477
    (708) 614-8833
    Social Security & Disability Law Attorneys,  Legal Service Plans,  Attorneys,  Labor & Employment La
    Horn John E
    16710 Oak Park Ave
    Tinley Park, IL 60477
    (708) 614-8833
    Attorneys, Criminal Law Attorneys, Social Security & Disability Law Attorneys, Real Estate Attorneys
    A. Mierswa Law Offices
    5225 Old Orchard Rd
    Skokie, IL 60077
    (847) 899-8734
    Attorneys,  Family Law Attorneys,  Accident & Property Damage Attorneys,  Wills, Trusts & Estate Pl
    Legal Helpers, PC
    16335 Harlem Ave Ste 402
    Tinley Park, IL 60477
    (708) 856-8635
    Bankruptcy Law Attorneys, Legal Service Plans, Attorneys
    Aldridge Shayne L
    113 Sycamore
    Pleasant Plains, IL 62677
    (217) 414-8596
    Attorneys Referral & Information Service, Attorneys
    Immigration Law Associates
    8707 Skokie Blvd Ste 302
    Skokie, IL 60077
    (847) 763-8500
    Immigration Law Attorneys, Attorneys, Legal Service Plans
    Collens Mark B
    5550 Touhy Ave # 300
    Skokie, IL 60077
    (847) 675-8181
    General Practice Attorneys, Attorneys
    Winter Daniel J
    9933 Lawler Ave Ste 402
    Skokie, IL 60077
    (847) 244-8180
    Bankruptcy Law Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
    Nancy K. DuCharme
    PO Box 222
    Tinley Park, IL 60477
    (708) 459-8112
    Attorneys, Patent, Trademark & Copyright Law Attorneys
    G A Crandall & Co Inc
    6851 167th St
    Tinley Park, IL 60477
    (708) 633-8100
    Insurance, Attorneys, Business & Commercial Insurance, General Practice Attorneys
    David L. Anders
    16860 Oak Park Ave
    Tinley Park, IL 60477
    (708) 325-8076
    Attorneys
    Hutchison Anders & Hickey
    16860 Oak Park Ave
    Tinley Park, IL 60477
    (708) 325-8027
    Accident & Property Damage Attorneys,  Family Law Attorneys,  Personal Injury Law Attorneys,  Attorn
    Stephen N
    5750 Old Orchard Rd Ste 420
    Skokie, IL 60077
    (847) 324-7990
    General Practice Attorneys, Attorneys, Legal Service Plans
    Total Attorneys - Divorce
    PO Box 273855
    Pleasant Plains, IL 62677
    (217) 666-7827
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
    John F. Stimson
    9933 Lawler Ave
    Skokie, IL 60077
    (847) 787-7627
    Attorneys Referral & Information Service, Attorneys, Arbitration Services
    Krydynski & Frigo
    18311 N Creek Dr Suite G
    Tinley Park, IL 60477
    (708) 991-7417
    Attorneys, Family Law Attorneys, Divorce Attorneys, Child Custody Attorneys
    Wasserman Laurie J
    9933 Lawler Ave Ste 122
    Skokie, IL 60077
    (847) 674-7324
    Labor & Employment Law Attorneys, Attorneys, Legal Service Plans
    Merima Redzic
    5225 Touhy Ave Ste 100B
    Skokie, IL 60077
    (224) 534-7065
    General Practice Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US