Naperville and Yorkville Letter of Intent Attorneys

A letter of intent is an initial letter expressing interest in purchasing a business or franchise. The letter of intent summarizes the buyer’s intention to purchase the seller’s business (or franchise). The letter of intent contains key terms and conditions for the proposed business sale.

Benefits of Letter of Intent

The Letter of intent provides a detailed description of the proposed business deal. The letter of intent provides a specific description of the timeframe proposed for completing the proposed deal. The letter of intent should summarize the following information:

• Prices and Terms such as the business to be acquired

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What is a Limited Liability Company (LLC)?

We’ve all heard the term LLC before but, do you know what it means and what it does? LLC stands for Limited Liability Company, which is a popular structure used to form a business. 

An LLC is essentially a mixture of the best parts of a Partnership business structure (including the tax benefits) and the best parts of a Corporation business structure (including the protection from personal liability). 

A real estate investor asked whether it was acceptable to purchase property through an LLC. The answer is “Yes”. The mortgage will be personally guaranteed by the members of the LLC (or owners of the LLC). The property deed can be titled in the LLC or otherwise known as the Limited Liability Company. Members of an LLC are the owners of the LLC. The owners of a corporation are shareholders. LLC members appoint managers to run the rental property business.

The LLC members pledge their personal assets as collateral to back the lender’s debt. Mortgage companies lend to individual owners of the LLC. The LLC may appear on the title to the rental property. However, the LLC members personally guarantee the mortgage and note. 

Benefits of Setting Up an LLC for Real Estate Investors or Landlords?

There are three major benefits of setting up LLCs for rental property. The three benefits are the following:

What are the differences between a Limited Liability Partnership and a Limited Liability Company?

This article will discuss the differences between a Limited Liability Partnership and a Limited Liability Company. 

Limited Liability Partnership aka LLP

A Limited Liability Company is a hybrid between a Corporation and a Partnership. A Partnership is when two or more people join together to establish a business. The benefit of a partnership is the flexibility of business arrangements. A partnership can be any written benefit that two or more people envision. The drawback to a partnership is the lack of limited liability protection. The benefit of a corporation is the separation between a person’s assets and business liabilities. A Corporation provides limited liability protection for their owners or otherwise known as “shareholders.”

1. Limited Personal Liability

In this article, we will examine the benefits of LLCs. The first major benefit that we will discuss is limited liability protection. Prior to incorporating a business, many entrepreneurs are sole proprietorships or partnerships. Generally, establishing an LLC is a sign of maturity in business. Limited personal liability is the benefit of limiting the business liabilities to the business (or LLC). An LLC creates a separate legal entity, which is distinct from its’ owners. As a separate legal entity, the business owners and its’ personal liabilities are distinct from the business.