Have a template for creating a LLC and need it reviewed by a business forming attorney from IL.
It is generally less expensive for the attorney to use their template as a starting point for drafting an operating agreement. Further, if this is a multi member LLC, you should probably sit down and discuss with the attorney all kinds of issues related to ownership transfer, valuation, buyouts, etc. E.g. what if your fellow owner quits working and keeps taking 50% - is that ok? If it is a single member LLC, the attorney should have a strong single member (manager managed) LLC operating agreement to use. As to starting the LLC, that is a 15 minute deal with the Secretary of State and Articles of Organization.See question
Hi, I would like to start a business but I cant open it on my name so I am planing to do it on someone else's name. What documentation is required for that? Is there something i need to keep in mind and should take it on paper?
If you are thinking of defrauding someone, say an ex-spouse out of child support on earnings or you have a non-compete you are trying to get around, or you are not able to own a business in the industry, I suggest thinking of something else. Make sure you get good, ethical legal advice before doing something that might get you in trouble.See question
My understanding is that the main purpose of S corporations is "pass through taxation" that avoids the double taxation involved with C corporations. So does this mean all profits must be paid out in the form of income? Let's say John Doe starts a ...
The general rules are: The income is taxable to the owner whether or not the money is distributed to the owner. So the $100k is taxable to John Doe no matter what. The money can stay in the company and be used for company purposes - or be distributed out. If John can pay the tax on the income without using company funds and wants to grow the company with the $100k, that's ok. Check with your accountant to make sure there are no other issues.See question
Wondering if naming a non-member attorney the secretary of the LLC would grant him authority to sign membership certificates.
Question why you would even want certificates? Why not go with uncertificated membership interests? Your operating agreement would set forth what people can do. Why would you want a secretary? What would that person do that a manager of a manager managed LLC couldn't do? Answer - you don't, and shouldn't usually, need to appoint the same officers as in a corporation and if your attorney is using an LLC operating which is derived from corporate by-laws - run away.See question
Let's say I own my own business, which is property incorporated, and which, if shut down and liquidated, would be worth $1 million, all of which would go to me. I myself personally have $50,000 in the bank. John Doe sues me in my personal capacity...
If you owned 1 share of IBM stock, this would be property you own and subject to a turnover order. Same thing with a fully owned corporation. With a multi-member LLC the creditor may be limited to a charging order remedy - of course if this is a known creditor, then switching to a multimember LLC would be fraudulent. If you are married and your spouse owns 1/2 of the corporate stock, then only your half would generally be subject to turnover for your tortious conduct.See question
In Illinois, can a S-Corp be the member (owner) of a LLC?
Yes. But an LLC generally can't be the owner of an S-Corp.See question
The provision states: 15. Ownership of Clients: At all times during after termination of this agreement, the ownership, and relationship of all clients shall be owned by company. Consultant agrees to not solicit, contact, steal, or divulge info...
Technically yes assuming you do the prohibited activity. However, then there would be a question as to enforceability if they tried to enforce. It may not be enforceable as usually there should be a time duration on the length of a non-compete. However, you really need to look at the whole contract to determine if there are other defenses to enforceability or other clauses, such as confidentiality, that may be enforceable even if this clause is not.See question
I would like to register an S-Corp in the state of Illinois using a pseudonym or a different name entirely because of some personal family issues. it isn't to evade taxes or anything just to avoid some hassle due to being part of a family. Anyways...
Hmmm... looks like more info is needed. If you are forming a new corp, then you can choose any name. If you are registering an out of state existing corp to do business here, then you would need to register that company. But you could perhaps change that company name out of state and do a dba in prior state under that name and register the then true name here. Not sure if you could just register the dba here (assuming you chose to just set up a dba there). There are usually other facts that may impact things that haven't been shared, so I suggest hiring an attorney.See question
I run a very small business on etsy. I no longer wish to use my DBA and only operate under my legal name. My DBA expires in 2019. Can I just stop using it and let it expire? I know I should go through the process of canceling it, but I don't have ...
I'm not your attorney and this isn't legal advice for you, but I would tell my client asking this question that yes they can stop any time and I see no reason to cancel the DBA. You already paid for it for 5 years, so just let it sit out there and you can use it if you want to in the future. Plus this keeps someone else from taking it and getting confused with you. .See question
Hello, I want to incorporate in Illinois, the online application is fairly easy but I'm not sure how to answer the following!! 1- Number of shares Authorized: 2- Number of shares proposed to be issued without further report to the Secretary of...
Did you know an LLC can be taxed as an S-Corporation and not have to do the annual minutes? For that reason alone, you should seriously consider an LLC. Can also be taxed as a sole proprietor and you can put more in retirement than if you play the S-corp. "reasonable compensation" game, but that is a discussion for you to have with your business lawyer. I disagree with only a "modest" amount of initial consideration. That can later lead to a "piercing the corporate veil" claim if the company was initially under capitalized. See articles on the web related to that topic. If you don't set it up right now for the future, it will likely cost more to fix later. Tax consequences if go from s-corp. to sole prop., or partnership, etc.See question