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


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