The LLC, or Limited Liability Company, is a business structure that was invented to offer an array of advantages usually provided by other traditional business forms. Limited liability is an advantage that the LLC shares with the corporation, but instead of being taxed as its own entity, it is viewed more like a sole proprietorship or partnership for tax purposes. Like a corporation, a LLC can have unlimited shareholders, called members. But a main difference is if one of these shareholders dies or files for bankruptcy, the LLC is dissolved and will stop operations unless the remaining members form a new LLC. Business forms with limited liability have existed for hundreds of years, but the modern LLC became more popular in New York since the legislature enacted laws authorizing its creation.
Can My Business Be Formed as an LLC?
Businesses in New York may organize using whatever form they choose. The office of the Secretary of State is the organization that accepts filings by those who want to open LLC's. However, fees are frequently required to form a LLC. The actions of LLC's as well as the costs for operating them are determined by New York law. You should consider these laws when deciding whether to organize your business as an LLC. Finding the right business structure for your company might take some effort, but it will ultimately make your business more profitable.
Can I Change the Form of My Business to an LLC?
Changing business forms in Medina can be done if a company's situation meets particular conditions. Conversion to a LLC is possible if New York law permits it in your situation.
How Can an Attorney Help?
A lawyer versed in New York business law will be able to advise you of the advantages and costs for forming and maintaining a LLC.