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The LLC Act in Illinois

The LLC Act in Illinois provides the rules and regulations for operating a limited liability company in the state.

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Overview

Introduction

The Limited Liability Company(LLC) is a legal entity formed by one or more persons to conduct business. An LLC is created by filing articles of organization with the Secretary of State. The LLC becomes legally recognized as a separate entity when the articles of organization are approved.

There are many advantages to organizing an LLC. One advantage is that it limits the liability of the owners for debts and liabilities incurred by the LLC. Another advantage is that it allows for flexible management structures. The management structure can be customized to fit the needs of the owners. For example, an LLC can be managed by its owners, by a board of directors, or by managers who are not owners.

The law governing LLCs in Illinois is the Limited Liability Company Act ( ILCS 180/1-40 ). The LLC Act sets forth the rules and regulations for forming and operating an LLC in Illinois.

What is an LLC?

An LLC, or limited liability company, is a business structure that offers the limited liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship. In Illinois, an LLC is formed by submitting Articles of Organization to the Office of the Secretary of State.

The LLC Act in Illinois provides for the formation, organization, and governance of LLCs in the state. The Act also lays out the rules for dissolution and winding up of LLCs.

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The Benefits of an LLC

An LLC, or limited liability company, is a type of business entity that can offer its owners limited personal liability protection from debts and lawsuits arising from business operations. LLCs are governed by state law, and Illinois law provides for the formation of LLCs in the state.

LLCs have many benefits, including:

-Limited personal liability for owners: LLC owners are not personally liable for the debts and liabilities of the LLC. This means that if the LLC is sued or cannot pay its debts, creditors cannot go after the personal assets of the owners.

-Flexible management structures: LLCs can be managed by their members (owners) or by a group of managers. This flexibility allows LLCs to be organized in a way that suits the needs of the business.

-Pass-through taxation: LLCs are not taxed as entities separate from their owners. instead, all profits and losses “pass through” to the individual owners and are taxed on their personal tax returns. This can provide significant tax savings for businesses with high profits.

-Perpetual existence: unless it dissolves according to state law, an LLC can exist indefinitely. This is unlike sole proprietorships and partnerships, which typically end when an owner dies or leaves the business.

The Process of Forming an LLC in Illinois

An LLC, or limited liability company, is a business structure that offers both personal and professional asset protection. Many entrepreneurs choose to form an LLC for this reason. If you’re thinking about starting an LLC in Illinois, there are a few steps you’ll need to take.

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First, you’ll need to choose a name for your LLC. This name must include the phrase “limited liability company” or “LLC.” It can also include the abbreviations “L.L.C.” or “LLC.” Once you’ve chosen a name, you’ll need to file Articles of Organization with the Illinois Secretary of State.

The Articles of Organization must include the following information:
– The LLC’s name and address
– The LLC’s purpose
– The names and addresses of the LLC’s organizers
– The effective date of the Articles of Organization
– The signature of the organizer
After the Articles of Organization have been filed, you’ll need to obtain an Employer Identification Number (EIN) from the IRS. This number identifies your LLC for tax purposes. Once you have your EIN, you can open a bank account in the LLC’s name and begin doing business!

Operating an LLC in Illinois

An LLC, or limited liability company, is a business structure that offers personal liability protection and tax benefits.3 min read

Operating an LLC in Illinois comes with certain responsibilities and requirements.3 min read

To form an LLC in Illinois, you must file Articles of Organization with the Secretary of State and pay a filing fee.3 min read

You will also need to appoint a registered agent for your LLC who is authorized to accept service of process on the LLC’s behalf.3 min read

Once your LLC is formed, you will need to obtain an EIN from the IRS and open a bank account in the LLC’s name.3 min read

You will also need to comply with ongoing maintenance requirements, such as holding annual meetings and keeping minutes of all meetings.3 min read

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Conclusion

In Illinois, the LLC Act protects LLC members from liability for the debts and obligations of the LLC. This protection isknown as the “corporate veil.” The corporate veil is a legal fiction that allows businesses to be treated as separate entities from their owners. This means that, in general, LLC members are not personally liable for the debts and obligations of the LLC. However, there are exceptions to this rule. For example, if an LLC member personally guarantees a debt or obligation of the LLC, the member may be held liable for that debt or obligation. In addition, if an LLC member engages in fraudulent or illegal activity, the member may be held liable for damages caused by that activity.

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*This applies to Virginia residents too!

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