What Does LLC Stand For: A Guide to Getting Started in New York
Are you considering forming a Limited Liability Company (LLC) for your business in New York3 min read
Are you considering forming a Limited Liability Company (LLC) for your business in New York? You’ve likely heard of LLCs when doing research but do you know what they are and how to start one in New York? This guide will help answer all your questions, so you can begin the process of setting up your LLC with the right legal help.
In this article, you’ll learn what LLCs are, the key benefits they provide, the necessary steps for starting an LLC in New York, and advice on how to find the right legal help.
What is an LLC?
An LLC is a business entity that combines aspects of both a corporation and a partnership. Certain legal protections that business owners enjoy with a corporation are available with LLCs, but there are some significant differences between the two types of businesses.
Key Benefits of Forming an LLC
The biggest benefits of forming an LLC include limited liability protection, flexibility, and pass-through taxation.
Limited liability protection is a major advantage of forming an LLC. This means that the liability of owners is limited to only their investments in the business—personal assets and investments are off limits. As long as the LLC is operated correctly, business owners are generally not liable for any debt or losses that the business might suffer.
In terms of flexibility, LLCs have the same rights as corporations to enter into contracts, purchase property, and hire employees. The major advantage of this type of flexibility is that business owners can avoid creating a complex corporate structure if the business does not require it.
Lastly, most LLCs are “pass-through” entities, so business owners can avoid double taxation of both the business and their own personal income. This means owners are only taxed once on their shared income, and they are able to expense financial investments made by the business on their personal tax forms.
Starting an LLC in New York
The process for starting an LLC in New York is similar to other states, but there are a few extra steps that you should understand before beginning the process.
The first step is selecting a name for your LLC. Your name cannot already be registered and it should ideally include “LLC” or “Limited Liability Company” to signify that it is a limited liability company. Once you have chosen a name and confirmed that it is available, you can file the Articles of Organization, which is the legal document that will formally register your business. You may need to register with the Division of Corporations or may be required to register through other state agencies or boards.
You will also need to get an Employer Identification Number (EIN) for your business from the IRS. This is a necessary step for paying taxes and filing other documents. Furthermore, it is important to make sure that your LLC is compliant with local and state regulations, so you should consult with the Department of Business Services or the Department of Financial Services to ensure you meet all the necessary requirements.
Finding the Right Legal Help
After you have completed the initial step of registering your LLC, the next step is to properly maintain your business. This includes drafting a Business Operating Agreement, filing any changes in members, opening a business bank account, and registering for various business taxes. All of these regulatory matters require a legal expert and, because the process of starting an LLC in New York is so complex, it is essential to consult with an attorney.
UpCounsel provides access to an extensive network of experienced attorneys who can help ensure that your LLC is properly registered and all regulations are met. Whether you need one-time advice or need to outsource a complete legal department, UpCounsel caters to businesses of all sizes and offers a unique combination of expertise, affordability, and convenience.
Forming an LLC in New York has many benefits, including limited liability protection, flexibility, and tax savings. The process itself, however, is quite complex and requires legal assistance in many parts. Upon completion of the process, you should make sure to maintain a compliant business in order to continue taking advantage of the benefits of an LLC. To do this, you should hire experienced legal counsel, such as UpCounsel, to provide the necessary advice and services to keep your business organized and up to date with all the necessary regulations.