An LLC stands for Limited Liability Company and it can help your business in many ways. But what are the advantages of setting up an LLC in Illinois? Well, to start with the annual growth for the economy in Illinois is 3.5%, plus the state itself takes care of you by offering incentives for businesses out there. Many businesses have chosen to set up an LLC in Illinois and it is a strong business community. So what are the benefits of setting up an LLC in Illinois? Well, we have broken that down for you.
The cost is low
Unlike other states, when you want to file Articles of Organisation with the Secretary of State, it only costs you $150. This applies to both choices of either applying through the website or filling out a form and mailing it to them. Taxes are also different when you have an LLC in Illinois. You'd be taxed entirely just on your LLC, which is renamed as personal property replacement tax and it is only 1.5%.
The procedure is really easy
Whilst it can seem daunting setting up an LLC, it actually isn't. When you set up an LLC in Illinois, it is pretty straightforward and you only have to wait for 10 days for the processing to be complete. All you have to do is come up with a unique name for your business, choose a registered agent, file Articles of Organisation, set up an LLC operating agreement and get an EIN. If you feel like you are struggling with any steps, there are plenty of guides and help that you can get from professionals.
You can secure your business
Once you get an LLC, you would also have the advantage of protecting your assets for your company. You can do this by opening up a business bank account and getting a business credit card, in order to separate your business purchases and assets to your personal one. This can help avoid sticky situations, if your company ever gets sued.
You can insure your business
Another benefit of turning your company into an LLC is being able to apply for business insurance that is specified for that. There are insurances that can help protect you from lawsuits, cover claims of malpractice and other mistakes made in the business. You would also receive professional advice when needed for the legal side of your business. You can also get workers' compensation insurance, which can cover any injuries, illnesses or anything else related to your worker's.
It's all to do with the law
If you get an LLC, the liability can be reduced if you comply with the employment laws. If you verify with each worker that they have the legal right to work in the U.S, reporting new hires to the state, withhold employee taxes and making sure that you have workplace compliance posters visible to employees in your working environment, this will help you majorly. You also have to comply with the LLC Illinois laws, by being consistent with your permits, taxes, licenses and any payments.
So is it really worth it?
Yes, getting an LLC can give your company many opportunities; such as having a unique name that is copyrighted and yours, having connections with many professionals who can give you legal advice, preventing yourself from being in any sticky situations and losing your personal assets, offering specialised insurance to your company and workers, as well as having an easy process to setting this all up.
If your company is a partnership mixed with the traditional method of a corporation, then it is highly suggested for you to get an LLC. There are many huge companies and small businesses that have chosen Illinois as a state specifically, given the benefits listed above as some of the main reasons for their choice.