Do you have any information about the legal protection of a single member LLC in Illinois? I was asking because someone told me that the single member LLC in Illinois doesn’t have any type of protection from the legal point of view, but the multiple members LLC does have legal protection from your assets.
Also, how can I get a resale number in Illinois? I am buying blank items, then I embroider them and sell them in my shop, but some suppliers are asking me for my resale number.
Our Response: The LLC provides protection between your business and personal assets. The LLC is a separate legal entity, so in the event of the LLC being sued, your personal assets should not be at risk, provided the LLC activities weren’t negligent, etc. There isn’t any differentiation between a single vs multiple member LLC. The same form is filed regardless of how many people are a part of the LLC. There are some states that do not allow single member LLC’s but Illinois does.
When you signed up for the Illinois business tax number, you would have received a 8 digit number and resale certificate which allows the vendor to not collect sales tax. Some vendors will just ask for the number, others will want a copy of the certificate and some may have you fill out a form –http://tax.illinois.gov/taxforms/sales/crt-61.pdf.