Should I form Illinois Limited Liability Company (LLC)?
Whether it’s a one-person professional consulting service or an Internet-based store, the time comes when most everyone running a business in Illinois asks "is an LLC in Illinois right for me?"
First, you'll want to take a look at the size of your business and assets. To get started, answer these yes/no questions:
* Are you a Mom & Pop operation with no employees?
* Do you operate out of your home?
* Is your income relatively low?
* Are your personal assets of relatively low value?
If you answered NO to even one of the above, you will definitely want to consider forming an LLC for your business.
Illinois LLC will protect your personal assets
Almost always, limiting liability is reason enough for business owners with even modest personal assets, such as a house and a car, to form a Limited Liability Company (LLC) for their business. Without limited liability protection, an owner's personal assets can be taken to satisfy unfulfilled obligations of the business. Unpaid loans and bills, unfulfilled contracts and guarantees, broken leases, and even judgments stemming from legal action against the business are just some of the obligations for which a business owner could be held liable.
It is certainly prudent to eliminate the risk of losing your personal assets to satisfy a business obligation if at all possible.
Forming Illinois corporation is also an option
Of course, Illinois S corporation will also provide you with limited liability protection and may prove to best suit your needs after you have considered all of the other issues, not the least of which is taxes.
The type and size of the business, the state or states in which you operate, the number of owners and their relationship to each other and to the business, the personal finances of each of the owners and their families, plus other questions related to the specific situation must be taken into account in order to identify which of the possible business entities will be most beneficial.
You'll want to visit the MaxFilings Online Incorporation Knowledge Center to find a wealth of information that applies to both Illinois and other states. You will find information on the different types of business entities, from C and S corporations to LLCs, and their relative advantages. And there’s much more, all of which is designed to help you better informed as you make important decisions.
If forming Illinois corporation is under consideration, you’ll want to review helpful information specifically about Incorporating in Illinois.
Conclusion: So, should I form Illinois LLC?
As you can see, the answer is "it depends". Examining all of the unique variables of your situation alongside the latest federal, state and municipality tax laws is an exercise that calls for the help of a qualified accountant, tax advisor or financial planner. Not only are both Federal and Illinois tax laws ever changing and complex, they are subject to interpretation and the average layman will be quickly lost.
Once you have decided it's time to form your Illinois Limited Liability Company (LLC) or corporation, MaxFilings can help you do so quickly, easily, and economically. Start entering your information now and save it for when you're ready. You're under no obligation, and there is no charge until you actually place your order.
Following are some articles that may help in deciding between Illinois LLC, Illinois C corporation and Illinois S corporation.
Wondering what happens after you submit your incorporation order to us? Have questions about using MaxFilings to incorporate your business or form an LLC? Here you'll see basic questions about our system that can help make your experience smooth and hassle-free. FAQ About MaxFilings