9501 W. 144th Place, Suite 205, Orland Park, IL 60462
Call Us708-448-8141
Sosin, Arnold & Schoenbeck Ltd.
9501 W. 144th Place, Suite 205, Orland Park, IL 60462
Call Us708-448-8141
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Illinois limited liability company LLC attorneyThe advent of the Limited Liability Company (LLC) has been a wonderful thing for many business owners. As a business entity, an LLC differs from others, such as a Corporation or General Partnership, in a variety of ways. Most importantly, an LLC protects the individuals that own it from being personally liable for debts assumed by the business. 

Such liability protection is an extension of core principles of capitalism, which seeks to encourage economic competition. Without risk, competition cannot thrive; it is what motivates businesses to produce and market the best products and services and thereby earn profits. This fundamental tenet of the American capitalistic economic system underlies the very existence of the LLC.  

It takes courage (and a whole lot of work, as any business owner knows) to start a small business and to give it everything you have in competing in an existing market or, with enough ingenuity, creating a new market altogether. Beyond guts and your own valuable time, a new business requires capital, whether in the form of a bank loan or funds from investors. Of course, your business must pay back these debts. This duty is where the LLC has very important ramifications.

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Cook County business formation lawyerStarting a business is an exciting undertaking. There is the sense of ownership, the satisfaction that comes from working for yourself, the ability to profit, and, at every turn, the opportunity to learn. With excitement comes responsibility, however, and it is important to maintain compliance with incorporation formalities required under state law.

Not every business’s operations, needs, and goals are the same and, as such, it is critical that you choose to formally assume the type of business entity that is the right fit for your company. In doing so, you will need to consider tax benefits and burdens, liability issues, and the ownership and control of the business. There are important consequences to be aware of with regard to general partnerships and joint ventures, and key differences to understand with regard to traditional corporations, “S-Corps,” and Limited Liability Companies.

Incorporation Affects Corporate and Personal Liability

A fundamental precept of capitalism you are most likely aware of is the encouragement of business by rewarding the risk inherent in entering the marketplace. As the term capitalism suggests, much of the risk involved concerns the capital investment at the heart of every business. This capital, in the form of cash and other securities, may be provided by yourself, family, friends, angel investors, venture capitalists, or a combination of sources.  

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