Does your LLC have an TIN? - Understanding the New IRS Regulation Requirements for LLCs

Web Admin - Monday, January 23, 2017

Palatine corporate law attorneysAlthough most business owners are honest citizens, the few who are not have created a slew of regulatory requirements for everyone else. Case in point: the IRS now mandates that foreign-owned, single-member limited liability companies (LLCs) must obtain a U.S. tax identification number (TIN). Learn more about this new regulation, and how it may impact your business, in the following sections.

Understanding the Purpose of the New Regulation

The new regulation, which is supposed to ensure the United States is in line with requirements from the Financial Action Task Force (FATF), has been put into place to combat issues of tax evasion, money laundering, and terrorist financing. In addition to the requirement that all LLCs obtain a TIN, LLCs must also collect or obtain an employer identification number (EIN) for all members. Further, members may be required to file an annual tax return. 

Understanding the Potential Consequences

Failure to comply with the new regulations can, at the very least, result in serious penalties. If found to be willful, consequences could also include criminal charges, which typically carry hefty penalties, fines, and possibly even jail time. To avoid such consequences, it is critical that all LLC partners follow the new guideline. If you have questions about this new regulation, or any other regulations that may be imposed on your company, an experienced business law attorney can help.

Ensure Your Business is Compliant with All Federal Regulations 

Whether you have just started a new business, are planning to start up one in the near future, or have been in business for years, compliance with all federal regulations is critical to your company’s success. Obtaining a TIN is just one step in this complex but necessary process. Use this January to protect your company and its future with assistance from an experienced business law attorney. Able to review your company records to ensure you are properly governing your company, they can help you avoid possible personal liabilities.

Contact Our Palatine Corporate Law Attorneys

At Drost, Gilbert, Andrew & Apicella, LLC, we understand the complexities and issues your business may face. Dedicated and experienced, we strive to protect you and your company from legal issues. Learn more about how our Palatine corporate law attorneys can help you. Call 847-934-6000 and schedule a consultation with us today.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

Source:Janet Rae Montgomery-ISBA Estate Planning and Probate  “Dodoes, Loopholes, Defects and Other News Nuggets”

Why Your LLC Needs an Operating Agreement

Web Admin - Tuesday, March 18, 2014

illinois corporate attorney llcsLimited Liability Companies (LLCs) are a form of business structure that allows owners to have some of the benefits of a standard corporation, but with more flexibility to control the particulars of the business. This flexibility makes it important to make thoughtful choices about things like voting rules and members’ rights and responsibilities at the start of the formation process. That is where the LLC operating agreement comes in. While operating agreements are not required by law in Illinois, it is still highly beneficial to have them because of the extra control that they provide.

What is an Operating Agreement?

An operating agreement is a document that controls the structure of the company and the members’ relationships. This can mean many different things, but operating agreements often include provisions related to:

  • - Each member’s percentage of ownership;
  • - Management of the LLC- Member Managed v. Manager Managed;
  • - The rights and responsibilities of the different members;
  • - Voting powers and dispute resolution mechanisms;
  • - Voting and meeting procedures; and
  • - Conditions relating to the sale of the LLC and the members’ related rights.

The Benefits of an Operating Agreement

Given the importance of the types of provisions that operating agreements contain, each LLC should have one, even if it is not technically required by law. The law forgoes this requirement because the legislature drafted a set of default rules to apply to LLCs for cases in which the members decide not to draft an operating agreement. While people often rely on these default rules, that is not the best strategy for their business. The major benefit of the LLC is the freedom and control provided by the operating agreement, so skipping the drafting of the operating agreement defeats the purpose.

This is especially problematic because often times the default rules do not make the most sense for a particular business. For instance, most actions under the default rules require only a simple majority vote of the members to be approved. Drafting an operating agreement would allow the members to introduce supermajority votes and other control provisions on more important issues. Similarly, another central issue to any business is the distribution of profits.

In Illinois, the default rule is that distributions must be made in equal shares to all of the members. This rule seldom makes sense for businesses in which different members have invested different amounts. People often want to tie their distribution to the members’ stakes in the company, which requires a separate provision in the operating agreement. Of course, these are just some of the many choices that operating agreements allow LLC members to make about their business and its structure.

If you are in the process of forming an LLC and need an operating agreement tailored to your business’s specific concerns, contact an Illinois corporate law attorney. We help businesses across the northwest suburbs in towns like Rolling Meadows, Palatine, Schaumburg, and Inverness.

About the Author: Attorney Jay Andrew is founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

Recent Posts


Illinois defective products attorney Illinois small business trucking accidents Illinois insurance lawyer Illinois LLC creation Illinois tax attorney insurance claim dispute real estate leasing Schaumburg construction accident lawyer Deer Park workers compensation lawyer meal breaks Chicago estate planning lawyer traffic accidents coronavirus wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace personal injury pedestrian accident Long Grove real estate lawyer liability claims insurance claim delay insurance claim Arlington Heights employment attorney FSLA Schaumburg traffic lawyer sexual harassment Schaumburg civil litigation attorney Rolling Meadows Traffic Lawyer mortgage DUI attorney field sobriety test car accidents wrongful death IRA trust transfer Deer Park personal injury lawyer attorney fees Arlington Heights criminal lawyer Chicago attorney caregiver DNR denied insurance claim civil litigation Buffalo Grove traffic attorney Joliet general practice lawyers right to work startup company Rolling Meadows drug defense attorney insurance dispute attorney new real estate form liability Illinois living will taxes Schaumburg corporate attorney deadly crashes Illinois corporate lawyer PTSD Des Plaines criminal attorney Inverness DUI lawyer Buffalo Grove criminal defense lawyer Arlington Heights TBI attorney Palatine criminal defense lawyer crossover accidents boating under the influence Palatine civil litigation lawyer Inverness real estate attorney condo association Forcible Entry Rolling Meadows Attorney Des Plaines estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers truck collisions slip and fall cell phone accidents Buffalo Grove personal injury attorney anesthesia errors Arlington Heights traffic attorney Rolling Meadows insurance lawyer Illinois personal injury Crystal Lake employment law attorney modern family estate planning insurance claim denial special needs trust defective products insurance dispute personal injury claims Mt Prospect Attorney life insurance policy icy parking lots Fourth of July insurance claim dispute attorney guardianship attorney operating agreements Crystal Lake medical malpractice attorneys Palatine personal injury lawyer cell phone tower data Illinois construction accident attorney Rolling Meadows litigation lawyer institutional trustee real estate attorneys unauthorized overtime Illinois traffic attorney DUI compensatory time construction accidents owner responsibility Des Plaines tax law firm Policy Cancellation rollover car crashes Chicago estate planning dealing with problem employees unfunded trust Illinois medical malpractice attorney Inverness corporate attorney low-ball insurance settlement Chicago lawyer Inverness probate lawyer digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers investment property DUI penalities criminal defense wills and trusts job lawyers medical malpractice claims Palatine construction attorney Rolling Meadows insurance dispute lawyers underinsured motorist Illinois employment law Illinois trucking safety Buffalo Grove personal injury lawyer Barrington Traffic Lawyer Illinois law Crystal Lake estate planning lawyer Long Grove estate planning attorneys motorcycle accident Crystal Lake personal injury attorney Illinois attorney Illinois employment attorneys Illinois traffic ticket lawyer breathalyzer test Rolling Meadows estate planning attorney child safety Whistleblower Claims overtime violations Illinois wrongful termination lawyer pregnant women premises liability hit and run accident Crystal lake insurance dispute attorney Illinois Sales Representative Act ObamaCare denial of life insurance fault based insurance Super Mario Schaumburg employment attorney Illinois criminal defense attorney capital gains tax Crystal Lake injury attorney appealing an insurance claim Buffalo Grove corporate attorney Arlington Heights wills and trusts lawyers real estate zoning Rolling Meadows DUI lawyer Barrington attorney Barrington business law firm probate claims Deer Park traffic lawyer dram shop law irrevocable trust insurance agent negligence Des Plaines pet law attorney Crystal Lake car accident lawyer drunk driving statistics real estate closing Illinois driving without license Home Sale Contingencies real estate lawyer Illinois medical malpractice claim bad faith insurance claims car collision digital evidence Des Plaines personal injury attorney drugs Palatine estate planning lawyer Palatine insurance lawyer Arlington Heights wills and trusts attorney healthcare employment contract wrongful termination Barrington personal injury lawyer Schaumburg insurance lawyers pay when paid contract Illinois Human Rights Act Rolling Meadows personal injury lawyer golf accidents Illinois jet ski accident lawyer blood alcohol content bicycle accidents hands free device distracted driving accidents real estate attorney car accident construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Schaumburg injury lawyer Schaumburg personal injury attorney drug possession insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Long Grove estate planning medication errors pedestrian accidents Inverness personal injury attorney Rolling Meadows employment law attorneys Arlington Heights personal injury attorney eluding a police officer Schaumburg Inverness accident lawyer Long Grove wills and trusts attorneys employment law Illinois insurance attorney power of attorney for healthcare automated cars consent to a search Des Plaines injury law firm Employment Discrimination Law Des Plaines real estate lawyer employment law, Illinois employment laws college kids auto accidents Illinois speeding lawyer landlord tenant law trench injuries business litigation traumatic brain injuries murder wills DUI defense texting and driving license reinstatement Thanksgiving Illinois pet lawyer small business Des Plaines insurance attorney changes to mortgage law products liability Palatine corporate attorney Illinois employment lawyer Illinois elder law attorney Palatine employment attorney boating DUI estate planning trusts landlord employment attorney Illinois estate planning attorney Deer Park criminal attorney natural gas explosion subcontractor Barrington employment attorney estate planning Family Medical Leave Act corporate law Long Grove estate planning attorney traffic violations license revocation Rolling Meadows personal injury lawyers Illinois insurance claim attorney Illinois workers compensation lawyer Des Plaines Traffic Lawyer Illinois insurance claim dispute lawyers real estate contract privacy Crystal Lake medical malpractice lawyer Crystal Lake pedestrian accident lawyer Illinois will lawyer Illinois home inspection Rolling Meadows corporate lawyer Mount Prospect wills and trusts lawyers Rolling Meadows medical malpractice lawyers brain injury advance healthcare directive Crystal Lake employment attorney Schaumburg estate planning attorney Arlington Heights Traffic Lawyer TBI Arlington Heights wills and trusts attorneys criminal law Palatine elder law attorney contracts car accident lawyers deed transfer Palatine traffic accidents jet ski accidents Rolling Meadows insurance dispute lawyers, insurance dispute Illinois Probate Act of 1975 Kenilworth estate planning attorneys Illinois personal injury lawyers pet law Rolling Meadows marijuana attorney Palatine corporate law attorneys Crystal Lake personal injury lawyer spinal cord injury Illinois workers compensation attorney Palatine law firm Schaumburg elder law lawyer traumatic brain injury Rolling Meadows employment attorney Schaumburg criminal law attorney Illinois car accident attorney pet bites car crash injuries blended families Deer Park employment law attorney disability benefits Illinois employee rights attorney. Des Plaines civil attorney internet condo personal injury law firm Palatine traffic lawyer pedestrian injuries, pedestrian fatality home inspection lawyer mass shooting Illinois estate planning commercial real estate insurance claims Chicago will attorney, social media platforms, Illinois estate planning lawyer, Arlington Heights Attorney medical marijuana LLCs Des Plaines DUI attorney Crystal Lake law firm Illinois bicycle safety Illinois business lawyer Liquor Control Act Inverness traffic law firm privacy laws Illinois medical malpractice case Fair Labor Standards Act Crystal Lake accident attorney Illinois workplace discrimination attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, Barrington civil litigation attorney Illinois registered agent car accident lawyer employee rights Illinois Workers’ Compensation Commission natural gas Attorney Ken Apicella Chicago insurance law firm Des Plaines personal injury lawyer creditors Arlington Heights car crash attorneys Colin H. Gilbert Barrington estate planning lawyer Illinois employment law firm Arlington Heights injury attorney comparative negligence Arlington Heights wills and trusts lawyer Crystal Lake traffic lawyer power of attorney traffic offenses Rolling Meadows car accident lawyers in terrorem provision tax attorney Inverness injury lawyer dog bites DGAA elder law marijuana Deer Park medical malpractice attorney Mount Prospect elder law attorney Des Plaines accident attorney BUI revenge porn health insurance dispute minimum wage nursing home negligence whistleblower protections Landlord Tenant Ordinance Deer Park real estate law firm Palatine injury attorney Barrington estate planning attorney spinal cord injuries Buffalo Grove employment lawyer construction contracts traffic crimes sexual images personal injury attorney product liability Illinois real estate lawyer marijuana crimes attorney food poisoning distracted driving accident victims insurance disputes probate lawyer Deer Park motorcycle accident lawyer gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys BAIID vacation home fines insurance denial appeals Schaumburg estate planning lawyer Palatine workers compensation lawyer Rolling Meadows insurance attorney Rolling Meadows traffic law firm installment contracts Deer Park traffic accident attorney gift taxes car crash first degree murder work unions civil rights violation paid sick leave rollover accidents Home Remodeling Repair Act Barrington Illinois estate planning lawyer Illinois lawyer Arlington Heights car accident lawyer living wills Food and Drug Administration's Food Safety Modernization Act sole proprietorship Crystal Lake civil litigation lawyer Buffalo Grove medical malpractice lawyers Barrington drug crime attorney Illinois medical malpractice lawyers Des Plaines drug crimes lawyer murder defense Schaumburg wrongful death attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Buffalo Grove injury lawyer overtime pay probate process Chicago car accident lawyer Illinois wills and trusts probate car crashes criminal Barrington employment law firm texting while driving personal injury claim suspended license controlled substance Crystal Lake bike accident lawyer Palatine real estate lawyer personal injury accidents Deer Park DUI lawyer pizza emoji Do Not Resuscitate Barrington criminal defense lawyer Inverness real estate lawyer Illinois red light cameras Barrington real estate lawyer rest breaks underage DUI criminal record rumble strips estate planning attorney Palatine employment law lawyer expungement Illinois workplace lawyer Schaumburg personal injury lawyer Illinois Smoke Detector Act Crystal Lake tax lawyer Chicago insurance claim attorneys Inverness elder law lawyer problem employees Buffalo Grove insurance claim dispute lawyers Illinois real estate School Visitation Rights Act trust payments license Illinois Transfer on Death Instrument Schaumburg car accident attorney employee misclassification Crystal Lake pet attorney workers compensation benefits Rolling Meadows traffic attorney Exclusions Illinois insurance disputes federal crimes Buffalo Grove probate lawyer Des Plaines real estate attorney Illinois Arlington Heights medical malpractice lawyer Des Plaines personal injury lawyers cell phone Barrington criminal lawyer insurance negligence Barrington workers compensation attorney Schaumburg probate attorney Palatine Attorney homestead rights CAM Illinois employment law attorneys Chicago will attorney manufacturing Crystal Lake car accident attorney filing a medical malpractice claim defective products lawyer Schaumburg Attorney Jay Andrew Detainer Actions DMV civil litigation attorney fiduciary rule uninsured motorist head on collisions financial advisors underfunded trust Crystal Lake employment lawyer Arlington Heights insurance attorney personal injury lawyer POA Illinois insurance dispute lawyers Illinois employment law attorney Inverness insurance attorney Palatine employment lawyer Legal Info Rolling Meadows employment law attorney employee discrimination probate claims process Rolling Meadows personal injury attorney digital information trucking accident lawyers fatal car accidents Des Plaines drug lawyer living trust Crystal Lake criminal defense attorney Buffalo Grove traffic lawyers llinois Real Estate Lawyers Association Arlington Heights employment law attorneys severance agreements Palatine trusts lawyer Inverness civil lawyer Rolling Meadows Rolling Meadows boating crash lawyer slip and fall accidents social media after death residential real estate trustee motorcycle accident lawyer Arlington Heights lawyer life insurance lawyer employment lawyer foreclosure medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers Illinois civil litigation lawyer Schaumburg drug defense lawyer vacation home insurance agents Palatine drug lawyer traffic tickets unpaid overtime boating accidents IRA benefits Arlington Heights trucking lawyer employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Schaumburg estate attorney surgical mistakes Class A misdemeanor Schaumburg real estate lawyer preventing accidents senior citizens Illinois personal injury lawyer pedestrian-automobile accident medical malpractice unpaid assessment Arlington Heights real estate lawyer Des Plaines medical malpractice attorney Buffalo Grove law firm Kenilworth estate planning attorney FMLA Schaumburg employment law attorneys estate attorney income distribution deducation Illinois motorcycle accident lawyer jet ski loss of consortium traffic violations defense ACA Illinois personal injury attorney Rolling Meadows criminal lawyer Palatine punch death medical research Schaumburg personal injury lawyers Arlington Heights tax lawyer Illinois Trust Code Arlington Heights personal injury lawyer estate tax Self-Directed IRA Accounts Illinois business law atorneys loopholes comp time Illinois injury lawyer Chicago corporate attorney Kenilworth estate planning lawyer Rolling Meadows business lawyer estate plan Crystal Lake insurance lawyer Chicago employment attorney Palatine business attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, insurance attorney ken apicella Illinois wills and trusts attorneys reckless homicide Barrington boating accident attorney independent contractor Illinois DUI attorney healthcare claims Rolling Meadows criminal attorney Chicago biking tips back injuries Palatine probate lawyer Affordable Care Act Arlington Heights accident attorney workplace sexual harassment Illinois Wage Payment and Collection Act Federal Food Drug and Cosmetic Act estate planning lawyer Chicago employment lawyer Illinois probate lawyer license suspension Illinois insurance claims lawyers employees insurance adjusters Des Plaines motorcycle accident attorney fiduciary rule delay drug crimes lawyer dynasty trusts life insurance trauma after an accident BAC trusts commercial leases agent Illinois rollover accident lawyers Deer Park accident attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys liens Illinois traffic laws Chicago traffic lawyer Crystal Lake medical malpractice law firm involuntary manslaughter rent to own real estate contracts employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys workers comp Crystal Lake will lawyer Illinois insurance claim dispute lawyer digital assets Illinois trusts attorney preventable medical errors GM ignition switches driving drug crimes Des Plaines claims law firm Rolling Meadows probate lawyer Arlington Heights estate planning attorney estate planning for college students Rolling Meadows real estate attorney elder abuse Chicago trucking accident attorney Illinois traffic accident lawyer Crystal Lake business law attorneys Mount Prospect real estate lawyer Rolling Meadows tax attorney bike accident Palatine civil attorney breach of contract Retaliatory Discharge Barrington employment law attorney living trust vs will insurance claim denials probate fees Riverwoods estate planning lawyer speeding Barrington litigation attorney forming a corporation in Illinois Schaumburg medical malpractice lawyer Crystal Lake traffic attorney Long Grove real estate attorney IRELA Buffalo Grove real estate attorney wage theft bicycle dooring accidents drunk driving Illinois employment laws medical malpractice compensation workers compensation Arlington Heights pedestrian accidents real estate Barrington personal injury attorney South Barrington real estate lawyer Inverness estate planning lawyer murder charges drug crime Schaumburg criminal attorney Barrington medical malpractice lawyers caretaker rights South Barrington real estate attorney life insurance claims Des Plaines collections attorney Rolling Meadows accident lawyer swimming pools Colin Gilbert living trust benefits holiday statistics hiring employees traffic laws clemency Illinois pedestrian accident attorney commercial leasing traffic deaths denied insurance claims accidental death benefits insurance denials Barrington injury attorney Illinois job attorney Buffalo Grove car accident lawyer foreclosed rental property no contest clauses Illinois boating accident lawyer Illinois estate planning law firm federal regulations for LLCs Illinois traffic attorneys pain and suffering IRS Illinois collections attorney Illinois mortgages Transfer on Death Instrument