5 Reasons To Form A Business as an LLC - #3

Continuing the list of 5 reasons small companies should organize as an LLC in Illinois...

Reason #3. Flexibility.
LLCs are a relatively new form of entity, created as a hybrid between corporations and limited partnerships. Due to this history, LLCs can operate with a good means of flexibility. The ability to simply choose how the company will be taxed (as a corporation or as a partnership) is an example of this flexibility. Additionally, an LLC can be run by a “manager,” or by one or more “members.” It can have, but is not required to have, a board of directors and officers, similar to a corporation, or it can simply be run by its members or managers. Distributions and allocations of profits and losses can be structured in whatever means the owners want, and the the general operation of the business can be handled in a myriad of ways. In the absence of an operating agreement, the Illinois statute controls the way in which the business is legally operated. However, the statute authorizes the company to vary most of its obligations in an operating agreement.
For additional information on how to structure a company as an LLC, contact Ross Law Office for a free consultation.