Series LLC Illinois

Limited Liability Company

An LLC combines a corporation’s and a partnership’s features to form an entirely separate business entity. This combination protects an LLC from personal liability for a corporation’s business debts and the pass-through tax structure of a partnership or sole proprietorship.

The owners of an LLC enjoy the benefits of limited liability. Like owners of stock in a corporation, they cannot be held personally liable for business debts and claims against the LLC. Because of this, a properly formed and maintained LLC will prevent creditors from coming after any LLC owner’s personal property or possessions. Only the LLC is liable, and the owners stand to lose what they have invested in the LLC.

For tax purposes, an LLC is a pass-through entity, like a partnership or a sole proprietorship. Pass-through means that an LLC is not considered separate from its owners. All LLC income passes through the LLC to the company’s owners. These owners then report all profits or losses individually, thus avoiding double taxation within the corporate business form.

Illinois is one of the few states that permit “series” in LLCs. Series allow for different members, liabilities, and assets in each series and permit the segregation of liabilities in separate series. Series are especially useful for investment real estate and help manage additional investors in different series.

The LLC form is also very flexible and can allow for many different agreements between its owners and managers. If you have any questions about LLCs, please call our office at (312) 559-8400 or email.

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