An LLC is a hybrid between a partnership and corporation. It provides limited liability for its owners, in that the owner’s personal assets cannot be seized to pay off debts of the company. It is a good choice for many small businesses. And, a business lawyer Park Ridge Illinois can help you structure your LLC properly to ensure the business is protected. If you need legal assistance, contact The Law Office of David Hyde today for a free consultation at 312-210-9598.
LLCs are distinct from corporations in that they do not issue shares of stock, have no boards of directors, and do not require annual shareholder meetings. Therefore, they don’t need to maintain extensive records about their shareholders’ identities or holdings. In many ways, this makes them more flexible than corporations when it comes to managing ownership interests within an entity.
How are an LLC and Inc similar and different?
A Limited Liability Company (LLC) is the same as a corporation. An LLC is simply a business structure that offers protection from personal liability for its owners and managers. This means that if your company were to get sued for something you did at work, only the assets of the LLC would be at risk, not your personal assets or home. A corporation also provides this protection but comes with additional requirements such as: annual filings with state agencies and extra taxes on profits above certain thresholds.
Both business structures require you to register your business. You need to include similar information, such as your company’s name, locations, and owners. Documentation needs to be submitted to the government and these documents are in the public record.
There are differences between these structures as well. The ownership percentage differs in an LLC and Inc. The businesses are taxed differently. An LLC is a pass-through business entity for federal income tax purposes. That means it does not have to pay federal income tax. Instead, its profits and losses go straight through to the owners. Business income is the same as personal income, so the owner pays the tax on his or her personal return, and it’s taxed at the individual rate. Since only the members pay tax, there is a single level of taxation.
For corporations (Inc.) there are two different tax structures. An s-corporation is also taxed as a pass-through entity. A c-corporation is taxed double. Your corporation is a separate taxable entity with the business’ profits and losses taxable to the corporation. And, if the corporation distributes its profits to the shareholders, that is income to the shareholders which they have to report on their personal income tax returns.
If you are looking to start a business or modify your existing structure, it is important to have a business lawyer Park Ridge Illinois who can help you. This can be complicated to set up and an attorney can ensure it is done properly, so you can focus on the profitability, operation, and growth of your business.
Can I start an LLC online?
LLC’s are complicated, so the best thing you can do is seek professional help from a business lawyer Park Ridge Illinois. If you have an idea for a business and want to start an LLC online, there are several websites that will allow you to do just that. However, this is not recommended because it’s easy for someone who doesn’t know what they’re doing to make mistakes when filling out the paperwork or drafting legal documents.
How much does it cost to form an LLC in Illinois?
The cost of forming an LLC in Illinois depends on the size of your company and what type of business you want to start. The more members, shares and other details you have, the higher your fees will be. There will be a filing fee that is typically around $150. In addition, every year you will have to file an annual report with the Secretary of State, which will be around $75.
In addition, you need to have a registered agent who accepts legal correspondence on behalf of your LLC, and you must list their name and address in your Articles of Organization. David Hyde, is a registered agent and will make sure your privacy is protected and you have a reliable way for the state to contact your business. We can discuss a fee that is best for you so contact our office today for a free consultation.
In Illinois, there’s no state-level general business license. However, you may need to get additional licenses or permits based on your industry. For example, if you run a restaurant that serves alcohol, you’ll be required to obtain a liquor license. Fees for industry-specific licenses and permits vary. You can find information about license and permit types and costs through the Illinois Business Registrations, Licenses & Permits website.
Can I change the name of my LLC?
In general, there are two ways to change the name of an existing LLC. First, you may be able to file an amendment with state authorities. Second, you may convert your business structure into another type of corporation or partnership. You may also need to file additional paperwork depending on what kind of change you want to make and where you live.
Do I need a lawyer to form an Illinois LLC?
You can form an LLC yourself, but it is not recommended. The process can be complicated and mistakes can cost you time and money in the long run. If you decide to hire a business lawyer Park Ridge Illinois, they can make sure you are set up for success. With The Law Office of David Hyde you will be able to focus on everything you need to start or grow your business or to refine your infrastructure to maximize profits.
Can I transfer assets from my existing business to an Illinois LLC?
Yes, you can transfer assets from your existing business to an Illinois LLC. To do this, create a list of all your assets and their values. You may want to consider hiring an attorney or CPA for this step because there are many rules regarding what types of property can be transferred tax-free and how much money must be paid in taxes on each type of asset (for example, real estate).
Transfer the assets into the name(s) of your new company by completing an affidavit that shows where each item went. This document should include all relevant details about who received what items, where they were moved to, and proof such as receipts showing when these transactions took place.
A business lawyer Park Ridge Illinois can help you with your LLC
An attorney will be able to assist you in understanding all aspects of starting your own business. A good business lawyer Park Ridge Illinois will work with you in forming your limited liability company (LLC), and make sure that everything is done correctly. They will also make sure that any contracts are written correctly and protect your rights as an owner or partner in the company.
Attorney David Hyde will also advise you on financial issues related directly or indirectly with running a business such as taxes, investments, and insurance needs. If you’re thinking about starting your own business, an LLC is a great option. It offers many of the benefits of a corporation without some of the paperwork and expense. Contact us today for a free consultation.
