Tax Tactics & Associates specializes in new business organization. We assist in setting up new companies. From advice to problem solving to implementation, we are here to help in your business venture.
- Business Organization Consultations
- New Business Organization & Setup (Corp, Partnership, LLC or Non Profit)
- Series LLC
- Business Organization within 48 hours* Organizing requires the filing of proper documents, with an appropriate agency along with fees paid. We will complete this process for you and have your business officially organized in the state of Illinois within 48 hours*.
- Federal, State and County Registrations
Types Of Entities
A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization. A sole proprietorship is not a legal entity separate and apart from its owner. The owner has unlimited liability with regard to the sole proprietorship. This means that the owner’s personal assets are exposed without limitation to any and all liabilities related to the business. Income or loss of the business is reported by taxpayer on Schedule C of the owner’s form 1040. Net income is subject to self employment tax.
A partnership is an unincorporated business owned by at least 2 individuals. Owners have unlimited liability with regard to the partnership. That means that generally owners can be held liable for the partnerships debts or liabilities unless they are limited partners. Partnership files a separate return on form 1065. A Partnership is a “pass thru” entity. That means that a partnership generally does not pay federal tax. Income or loss is “passed thru” to partners and is taxed on each personal tax return – subject to 15.3% self employment tax.
A corporation is a legal entity separate and distinct from its owners- shareholders. Shares of stock are evidence of ownership of a corporation owners’. Personal assets are generally protected from creditors. A Corporation files separate return on form-1120. Corporate income is not subject to Self Employment tax. Income is taxed to the corporation first and then income is distributed to shareholders in the form of dividends it is taxed a second time on the shareholders individual tax return. It’s commonly known as “double taxation” Eligible corporations can avoid double taxation by electing to be treated as an S corporation.
Corporation S has the same legal advantages as a regular Corporation. Corporation S reports income or loss on separate return on form 1120S. An S corporation is generally exempt from federal tax. This means that profits and losses generated by the corporation are passed thru to shareholders and added/reported on their personal tax returns.
Limited Liability Company
A limited liability company (LLC) is a legal entity formed under state law. Owners (called members) of the LLC are not personally liable for its debts An LLC may be classified for federal income tax purposes as a partnership, a “C” corporation, “S” corporation, or an entity disregarded for tax purposes.
We pride ourselves on our exceptional expertise in this new, complex but rewarding form of entity. Since it has been approved in the State of Illinois in 2006 we have successfully organized businesses as these unique entities. The Series LLC is generally a means to protect multiple assets in the same manner as creating an LLC, but with paying lower administrative costs and government fees required for each.
After an LLC is established, you will be able to create separated protected “cells”, or series within the existing LLC. The Series LLC has many uses: ownership of multiple properties, businesses with numerous divisions in which production fluctuates, or as an alternative to a traditional business merger between two companies. In this case, a separate series (or cell) can be created wherein the two companies contribute their ownership interests as agreed upon among them.