S Corporation With Llc Subsidiary In Illinois
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These rules typically apply to all LLCs, no matter what state they are formed in. Your LLC Name Must Be Unique. The business name you've chosen cannot be used by any other LLC or corporation in the State of Illinois. Your LLC Name Must Not Be Confusable with Another Business Name. Your LLC Name Must Contain Certain Words.
Corp Election teps for LLCs tep 1 Choose a business name. tep 2 Choose a registered agent. tep 3 File Illinois Articles of Organization. tep 4 Create an operating agreement. tep 5 Apply for an EIN. tep 6 Apply for Corp status with IR Form 2553.
The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages. Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.
Because of the one-class-of-stock restriction, an S corporation cannot allocate losses or income to specific shareholders. Allocation of income and loss is governed by stock ownership, unlike partnerships or LLCs taxed as partnerships where the allocation can be set in the partnership agreement or operating agreement.
The biggest difference between S corporations and LLCs is how they are taxed. S corporations are taxed as pass-through entities, meaning that the profits and losses are passed through to the shareholders' personal tax returns, while LLCs can choose to be taxed as either a pass-through entity or a corporation.
Not every state recognizes the federal S Corp election, but Illinois does. In the state of Illinois, your federal S Corp will be taxed as an S Corp for state tax purposes, as well. You don't have to file separately to have your S Corp recognized in the state. Your IRS S Corp election is sufficient.
You can electronically file Forms IL-1120, Corporation Income and Replacement Tax Return; IL-1065, Partnership Replacement Tax Return; IL-1120-ST, Small Business Corporation Replacement Tax Return; IL-1041, Fiduciary Income and Replacement Tax Return; and any attachments and payments through our partnership with the ...
Depending on your organization type, you may be required to obtain a FEIN. Some organization types, such as corporations, S corporations, partnerships, and certain LLCs, require a FEIN. Some, such as a single member LLC, may not require a FEIN if you do not have employees.
