If you’re thinking about forming an LLC in New York, there are a few things you should know. Here are some of the key advantages of setting up an LLC in New York:
LLCs provide personal asset protection.
This means that if your LLC is sued, your personal assets (like your home or your savings) will not be at risk. Only the assets of the LLC itself will be at risk. This is one of the main reasons why people choose to form LLCs.
LLCs offer flexibility when it comes to taxes.
You can choose to have your LLC taxed as a sole proprietorship, partnership, S corporation, or C corporation. This gives you the ability to pick the tax structure that will be most beneficial for your business.
LLCs are relatively easy and inexpensive to set up.
Compared to other business structures like corporations, LLCs are much simpler and less expensive to set up. In New York, you can form an LLC online in just a few minutes and for a very reasonable fee.
LLCs offer continuity and can exist indefinitely.
Unlike other business structures like sole proprietorships and partnerships, which dissolve when the owner dies or leaves the business, LLCs can exist indefinitely. This makes them ideal for businesses that you want to pass on to your children or grandchildren.
LLCs are not subject to many of the formalities and rules that corporations have to follow.
For example, LLCs don’t have to hold annual meetings or keep detailed meeting minutes like corporations do. This makes LLCs much easier to operate than corporations.
LLCs are regulated by state law instead of federal law.
This can be advantageous because it’s often easier to comply with state laws than federal laws. It also means that you only have to deal with one set of regulations instead of two.
LLCs can have an unlimited number of members (owners).
Corporations, on the other hand, are limited to having no more than 2,000 shareholders. This makes LLCs much more flexible when it comes to ownership structure.
LLCs don’t have double taxation like corporations do.
With a corporation, profits are taxed first at the corporate level and then again at the shareholder level when dividends are paid out. With an LLC, profits are only taxed once—at the member level—when they are distributed as distributable income .
LLCs can be used for any legal purpose.
There are very few restrictions on what types of businesses can be formed as an LLC. This makes them incredibly versatile and attractive for a wide variety of businesses and entrepreneurs.