All posts by Brian Thompson

Chicago CPA and attorney

Cost to form Illinois LLC?

Cost to Form Illinois LLC

How much does it cost to form Illinois LLC?  In Illinois, the Secretary of State charges $500 in fees ($614.10 for expedited service).  Illinois Secretary of State fees must be paid whether or not you use an attorney.  New lower IL LLC filing fee . . . Illinois reduced the LLC filing fee to $150 ($255.88 for online filing) effective January 1, 2018.

How much are attorney’s fees to form an Illinois LLC?   Attorneys’ fees to form an LLC vary.  Several online services advertise that they can form limited liability companies for as little as $99 to $359 + state fees.  If that is true, why should you nonetheless choose an attorney to form your LLC?

Your attorney can draft an operating agreement that fits your unique needs and situation. An operating agreement is the basic contract that governs the management of the LLC – who has the legal authority to make binding contracts and decisions, which members contribute capital and who can deduct losses.   Unlike the generic form template supplied by online services, an the attorney can tailor the operating agreement to the client’s actual needs after interviewing the client.

In addition, the newly formed LLC might benefit from other related contracts.  For example, your attorney can include a non-compete contract to prevent a key member or employee from leaving the new enterprise and starting his own competitor.  Similarly, a non-solicitation clause to keep a key member or employee from stealing your clients.  In addition, only an attorney will recognize if you may be violating the corporate opportunity doctrine by leaving your current employer and starting a competing business in the same or similar industry.  An online service will not ask the client the right questions and recognize these legal issues.

Is the gain on the sale of my home taxable?

Is the capital gain on the sale of my home taxable income?  When you sell your home, federal tax law allows exclusion of up to $250,000 for single filers ($500,000 for joint filers) of capital gain if the home has been your principal residence for two of the preceding five years.

With respect to the exclusion of gain from sale of principal residence, the Internal Revnue Code provides that “gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.”  26 USC § 121.

Ways to Lower Your Income Taxes

Looking for ways to lower your income taxes?  Although this article from Kiplinger’s is a few years old, it still contains some good suggestions to lower your income taxes such as increasing your 401(k) contribution, increasing your Flexible Spending Account contribution, harvesting capital losses, and deducting capital expenditures:

http://www.kiplinger.com/article/taxes/T054-C001-S001-10-ways-to-lower-your-taxes.html

How do I resovle IRS Tax Problems?

If you are a taxpayer who owes income tax debts to the Internal Revenue Service, you may be asking yourself: “How to defend against an IRS tax or federal tax levy?” or “How can I resolve my federal income tax problems?” or “What should I do about my unfiled federal income tax returns and unpaid IRS tax debts/federal income tax debts, penalties and interest?” Chicago tax attorney and CPA Brian J. Thompson can assist you in resolving your unpaid federal income taxes and federal income tax problems with the IRS.

What should you do if the IRS sends you a Notice of Tax Due and Demand for Payment, a Notice of Federal Tax Lien, or a Final Notice of Intent to Levy and Notice of Your Right to a Hearing?

Do not ignore collection actions by the IRS which may include seizure and sale of property
held by you or levy of property that is yours but held by someone else (such as your wages,
retirement accounts, bank accounts, rental income, accounts receivable). The first step is to determine your true tax liability to the IRS, including any failure-to-file penalties, failure-to-pay penalties, and interest.  This first step may include filing any unfiled tax returns or correcting prior tax returns.  The next step in resolving your IRS tax debts involves paying the IRS what you owe. If you don’t have the money to pay your unpaid back taxes and federal tax debts now, an installment agreement or offer in compromise might be right for you.