What Are The Benefits Of LLCs And PLLCs In Chicago, Illinois?

The benefits of LLCs and PLLCs include providing protection to their members by allowing them to form limited liability entities that can operate a business or professional practice independently of their individual capacity.  As a result, the contracts and engagements of the LLC are with third parties on behalf of the LLC, not the individual.  In addition, any employees are hired by the limited liability entity, not by the individuals.  Thus, the operations of the limited liability entity provide a degree of liability protection and distance the members from the LLC's operations, benefiting the members from both a privacy and an individual liability standpoint.  The members are not on the front lines of these business operations or named parties to any such contract.  In addition, the members can enjoy "partnership status" if they so elect, so that they will be taxed as a partnership with the net income passing through the partnership (which has to pay various fees to exist but does not pay income tax on its earnings) to its individual members (who pay taxes based upon their form K-1 share of the LLC's income) based upon the allocation formula's set forth in the LLC or PLLC's Agreement.  In this way, all of the LLC's income passes through the LLC to its members.  Finally, the LLC can continue to exist notwithstanding a member's death.