Understanding Your LLC Taxes For The State Of Illinois
Owning and operating a business in the state of Illinois can be a profitable endeavor. It is a state that is well known for many different types of businesses, some of which are protected by limited liability companies. These types of companies are designed for purely legal purposes. They can legally structure your business to protect you and your assets. The liability that you would normally face in a lawsuit, specifically those that would involve your personal assets, can be avoided completely with your LLC in place. There are certain taxes that you will have to pay. Let’s discuss how much this is and also more information about limited liability companies in this state.
The Benefits Of Creating LLCs Today
Setting up an LLC may seem like an extracurricular activity, one that may not play a large role in the success of your business. However, if you are ever in a situation where legal challenges come to you, you will be very glad that it is in place. There are people that are also apprehensive about the taxes that must be paid if you have an LLC active. When comparing the potential liabilities that you will have with your personal assets, compared to the taxes required in Illinois, it is certainly beneficial to have your limited liability company in place.
What Taxes Will You Have To Pay?
In the state of Illinois, there are taxes that must be paid separately for LLCs. In particular, they charge a separate state tax, one that is directed specifically at sales made through businesses covered by each LLC. It is designated as a type of personal property replacement tax. This only applies, however, to those businesses which do not wish to be taxed as corporations. The total amount is 1.5% of the net income that you are able to generally be paid to the IDOR. In other cases, such as with corporate tax treatments, LLCs must pay up to 21% of their profits. This is all determined based upon the type of business they are in and the number of net sales that they have generated.
Is It Worth It To Set Up An LLC In Illinois?
It is certainly worth setting up any type of protection from legal problems that may occur. It is inevitable that there are businesses and individuals that may try to sue you, and this may involve going after your personal assets. Therefore, the cost of setting up an LLC, and using this to protect yourself, is well worth the cost including the cost of paying taxes in this manner. If you can do this on your own, you can file this very quickly, but most people often need a management team to help them keep up with all of the expectations for having a limited liability company.
What Forms Will Be Necessary To Start One?
The forms that are necessary are minimal although they may seem comprehensive if you have never looked at them before or use them. There is the operating agreement, an optional document, which will truly define your business as a separate entity. For example, it will detail the rights and responsibilities of those that are part of your business including the managers and the members that are there. There are also the articles of organization which are the main component of forming an LLC which is document or form LLC-5.5 in Illinois. Once these are filled out properly and submitted, you will simply pay the fee to have this done. The filing fee is $150 which can be sent in via mail or can be paid online.
Filling Out The Articles Of Organization
The articles of organization is always a straightforward document. There is the name of the LLC at the top, followed by various bits of information regarding the registered agent, managers, members, and also the signature of the organizer. This information will include their name, address, and you also must list the date when the LLC will become active. This is why it is vitally important to double-check all of your paperwork to make sure there are no problems. Working with a third-party business that specializes in the creation of limited liability companies might be the best way to get this done quickly.
This information should help anyone understand what is required of you if you file an LLC in the state of Illinois. Keep in mind that you also need an agent for the service of process in order to get this done. If you do use a third-party to help you, you won’t have to worry about any of the aspects of owning and using a limited liability company. As long as you are paying your taxes on time, it will be a very easy way to protect your business, and your personal assets, through this limited liability company in Illinois.