Kendall County LLC Formation Attorney

Why Do I Need An LLC?

While business ownership can be lucrative and rewarding, it also comes with certain types of risks. It is important to ensure that a business is established and structured properly, since this will protect an owner from liability while providing tax benefits and other advantages. This can be especially important for landlords, real estate investors, and other owners of residential and commercial real estate. By working with an attorney during the business formation process, business owners can make sure they meet all of the necessary legal requirements and have the proper protections in place.

At Gateville Law Firm, we provide skilled and experienced legal help for business owners, ensuring that they utilize the best asset protection methods and have the tools to operate their businesses successfully. We can provide guidance on the best ways to structure a business, taking into account the business's goals and the business owner's individual needs. With our knowledge of real estate law, estate planning, asset protection, and related matters, we can ensure that landlords and other business owners will be able to operate their businesses successfully and respond to any challenges they may face.

Establishing a Business Entity in Kendall County

Business owners who operate their businesses as sole proprietorships may expose themselves to certain risks. In these situations, an owner's personal assets and the assets owned by the business will not be separated. This means that the owner may be held personally liable for the business's debts and financial obligations. If financial issues occur due to a recession, or if someone pursues a legal judgment against the business, the business owner could not only face the loss of their business, but they could lose their personal assets as well and be subject to large debts and ongoing financial obligations.

To avoid liability and provide protection for personal assets, business owners will want to create a separate business entity. There are multiple types of entities available, but one of the best options is to create a limited liability company (LLC). This type of entity may have multiple owners (known as "members"), and it will provide protection against liability, ensuring that the owner will not be held personally liable for business debts. An LLC offers many of the advantages of establishing a business as a corporation, while also providing an owner with the flexibility to manage the business as needed.

LLCs can also provide some tax advantages. Business income from an LLC can be "passed through" to the business owner's personal tax return, and a substantial deduction may be applied when doing so. This means that the business will not be subject to corporate taxes, and the business owner will only be taxed on their personal income. LLCs can also help business owners save on self-employment taxes.

When establishing an LLC, business owners will need to file certain documents with the state. The business owner will also need to create an LLC operating agreement, which will set forth the rules and regulations for running the business. An LLC may be member-managed, meaning that the owner or members will directly control business operations, or it may be manager-managed, meaning that the owner or members will appoint other managers to handle day-to-day operations. The operating agreement will also detail how profits earned by the business will be distributed among the members. An LLC operating agreement should be created with the help of an experienced business law attorney to ensure that it will be legally sound.

Once all of the necessary documents have been filed to establish an LLC or other type of business entity, the business owner will be able to operate the business with the assurance that they have the proper protections. They will need to follow the rules and regulations set forth in their LLC operating agreement, as well as any applicable state and federal laws. By taking these steps, business owners can protect themselves from liability and ensure that their business is properly structured to achieve their goals.

Contact a Kendall County LLC Formation Attorney

LLCs or other types of business structures can help business owners to better manage their businesses and keep their business assets separate from their personal assets. It is crucial to follow the correct steps during the business formation process to ensure that a business owner will be able to properly protect their assets. At Gateville Law Firm, we can provide guidance on the best structure to use for your business, and we can help you meet the requirements to create an LLC or another type of business entity. Contact us at 630-780-1034 to set up a free consultation today.