LLC FORMATION NYC
LLC stands for Limited Liability Company. It is one of the 4 business structural models that is followed in the United States. It has its own set of benefits as well as some limitations. Our firm offers you multiple services for an LLC starting from its formation.
If you are unsure whether to form an LLC or not, go through the following lists of the positive and negative aspects of it. It helps you decide what to do during LLC registration.
Business Registration Services
- LLC FORMATION
- C CORPORATION
- S CORPORATION
- Limited Liability: As the name suggests, the foremost benefit is that it decreases your liability when it comes to the matters of the business. Be it any business debts that you have collected over the years or any damages from any mishap, you as the owner would have to face minimum consequences of it.
- The choice for Tax structure: Unlike other entity structures, LLC offers a choice for the people to choose their tax structure. Although mainly LLCs choose to include each member’s tax liability in their respective personal tax return.
- The choice for the usage of S-Corp election: LLCs have the option to choose S-corps to reap some tax benefits. These include but are not limited to paying themselves salary without paying the self-employment tax.
- Flexible management: An LLC can choose to have members or outsiders in the managerial positions.
- No limitation on a number of members: An LLC can have any number of members and can also keep salaries irrespective of the share of ownership.
- Limitations of the limited liability: In the case of any discrepancies found in your sales etc., you cannot stay under the umbrella of limited liability.
- Licensing and Filing fees: There is a fee that is charged when you set up a new LLC in any state. This as well as a set amount is to be paid annually to keep your LLC current and up and running.
- Complicated Tax Policy: There are additional forms that need to be filled for tax purposes like Company tax filing and K-1s etc. This adds on to the hassle of managing a company.
- Severe consequences of member turnover: In some states, if a member does not continue with the LLC, then the company can go bankrupt. The remaining members may even have to start up a new LLC from scratch.
- Harder to raise money: It is hard for an LLC to get any form of outside investment, as people prefer to invest in C-Corps. As you would have to be a member to receive any profit on shares, an external investor will not get the profits.
- Only good for the start: An LLC is good for the beginning of the business until an external source of investment is needed.
Now that you know both sides of an LLC and you want to set it up, the following is the procedure. Our firm offers guidance and help at every step of the way.
HOW TO FORM LLC IN NEW YORK
- Decide upon a name: First, you must choose a name for your LLC. Do an online search to ensure that the name you want has not been previously used. You can even reserve the name you want for a set amount of time.
- Find a registered agent: This is where we come in, choose an agent representing your state. Our agents will take care of the forms that need to be filed and the documents that need to be submitted.
- File Articles of Organization: You need to decide if your organization will be managed by members or by managers, and then you need to file the articles online or by mail.
- Follow publication Requirements: You need to publish the formation of your LLC in under 120 days in approved newspapers for your LLC to be approved.
- Write up an operating agreement: This will contain all your important information like names of members, information of people in management, hierarchy, payment schedules, etc. Some states require you to have a written agreement. Our firm guides in this as well to ensure ease of LLC formation in NYC.
- Get an EIN: The IRS will provide you with an EIN, which is a specific number that is assigned to you as an employer.
As our firm is based in New York state, we are registered to cater to LLCs only in the city of New York and its five boroughs; Manhattan, Bronx, Brooklyn, Staten Island, and Queens.