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


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