Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
ESTATE PLANNING
Last Will and Testament
Living Trust
Living Will for Healthcare
 
FINANCIAL & MARITAL
Power of Attorney
Premarital Agreement
Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
BUSINESS
General Partnership
Consulting Agreement
Employee Documents coming soon!
Incorporation coming soon!
Limited Liability Company coming soon!
 

Benefits of a Limited Liability Company (LLC) in Brooklyn, NY

Benefits of a Limited Liability Company (LLC) in Brooklyn, NY


Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.
 
- Steve Jobs


A limited liability company (LLC) is similar to a Partnership but has the liability protection for the owners that a corporation offers without the formalities, paperwork and fees. All new LLCs must file articles of organization with their secretary of state's office.

You should draft an operating agreement for your LLC that spells out the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities.

The LLC structure is a good way to "wall off" your personal assets from your company's liabilities, offering protection for your personal assets in the event of a liability or judgment against your business.

A limited liability company (LLC) also has certain tax advantages. The business itself is not responsible for taxes on its profits. Instead, the LLC's owners, known as "members," report their share of business profit and loss on their personal tax returns, similar to tax reporting for a General Partnership. This is known as "pass-through" taxation.


There are many benefits to an LLC structure.

  • Protected assets: LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or General Partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
  • Pass-through taxation: LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level.
  • Heightened credibility: Forming an LLC may help a new business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
  • Limited compliance requirements: LLCs face fewer state-imposed annual requirements and ongoing formalities than S corporations and C corporations.
  • Flexible management structure: LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
  • Few restrictions: There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).


    • Potential LLC Disadvantages

    LLCs may have some potential disadvantages, including:

  • Formation and ongoing expenses: To form an LLC, Articles of Organization must be filed with the state and the applicable state filing fees paid. Many states impose ongoing fees, such as annual report and/or franchise tax fees. While these fees often are not very expensive for small businesses, LLC formation is more expensive than that of a sole proprietorship or General Partnership, both of which are not required to file formation documents with the state. A few states, such as New York and Arizona, also require LLC owners to publish notice of the LLC formation in local newspapers for several weeks. This can be costly.
  • Transferable ownership: Ownership in an LLC is often harder to transfer than with a corporation. With corporations, shares of stock can be sold to increase ownership. Typically with LLCs, all owners must approve adding new owners or altering the ownership percentages of existing owners.
  • Less precedent: Because the LLC is a newer type of business structure, there is not as much case law or legal precedent for LLCs as there is for corporations.

    •  
    Personalize & Print a Free NY Last Will Create This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Personalize & Print a Free NY Living Will Create This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Related Legal Services near Brooklyn, NY
    Allstate Corp Svc
    1222 Avenue M
    Brooklyn, NY 11230
    (718) 382-9990
    Paralegals, Legal Document Assistance
    Aidala & Bertuna Law Office Pc
    8118 13th Ave
    Brooklyn, NY 11228
    (718) 238-9898
    Personal Injury Law Attorneys, Attorneys, Criminal Law Attorneys
    Aidala Arthur
    8118 13th Ave Ste 1
    Brooklyn, NY 11228
    (718) 238-9898
    Estate Planning Attorneys, Attorneys, Criminal Law Attorneys, Accident & Property Damage Attorneys,
    Henry Caruso Law Office
    8225 3rd Ave
    Brooklyn, NY 11209
    (718) 759-9890
    General Practice Attorneys, Attorneys
    Pigott Gerald
    266 Broadway
    Brooklyn, NY 11211
    (718) 782-9888
    General Practice Attorneys, Attorneys, Legal Service Plans
    Baratta Anthony
    411 Court St
    Brooklyn, NY 11231
    (718) 802-9858
    General Practice Attorneys, Attorneys
    Race Robert R
    306 Atlantic Ave
    Brooklyn, NY 11201
    (718) 596-9855
    Attorneys, Legal Service Plans
    Pasternack Tilker Ziegler
    111 Livingston St # 4
    Brooklyn, NY 11201
    (718) 222-9800
    Attorneys Referral & Information Service, Attorneys
    Jeffrey N. Markowicz
    703 Flatbush Ave Suite 300
    Brooklyn, NY 11225
    (718) 578-9792
    Divorce Attorneys
    Warren Michael W
    580 Washington Ave
    Brooklyn, NY 11238
    (718) 230-9790
    General Practice Attorneys, Attorneys
    Tatiana Pahman Law Offices
    2083 E 19th St
    Brooklyn, NY 11229
    (718) 998-9789
    General Practice Attorneys, Attorneys
    Albert Gurevich
    2544 E 22nd St
    Brooklyn, NY 11235
    (718) 509-9774
    Business Litigation Attorneys, Construction Law Attorneys, Corporation & Partnership Law Attorneys,
    Donald Mastrodomenico Atty.
    26 Court St
    Brooklyn, NY 11201
    (718) 694-9770
    General Practice Attorneys, Attorneys, Legal Service Plans
    The Hinds Firm
    546 E 42nd St
    Brooklyn, NY 11203
    (718) 473-9767
    Attorneys, Personal Injury Law Attorneys, Landlord & Tenant Attorneys, Criminal Law Attorneys, Immig
    Charles D. Soule, PLLC
    68 Jay Street, Suite 201
    Brooklyn, NY 11201
    (800) 707-9750
    Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans, Business Law Attorneys
    Levinsky Anatta
    6924 Bay Pkwy
    Brooklyn, NY 11204
    (718) 837-9700
    Attorneys, Legal Service Plans
    Michael L. Walker, Esq., PLLC
    9052 Fort Hamilton Parkway, Second Floor Suite
    Brooklyn, NY 11209
    (718) 680-9700
    Bankruptcy Law Attorneys, Attorneys, Real Estate Attorneys
    Lazarowitz & Manganillo LLP
    2004 Ralph Ave
    Brooklyn, NY 11234
    (718) 531-9700
    Attorneys, Legal Service Plans
    Yevgeny Levin - Brooklyn
    2625 E. 16th Street, 2nd Floor
    Brooklyn, NY 11235
    (718) 989-9629
    Corporation & Partnership Law Attorneys, Business Law Attorneys, Real Estate Attorneys, Contract Law
    Joseph Y. Balisok LL.M. (Tax) P.C.
    1650 Eastern Parkway, Suite 303
    Brooklyn, NY 11233
    (718) 928-9607
    Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys, Attorneys
    Zelenitz, Shapiro & D'Agostino, P.C.
    26 Court St
    Brooklyn, NY 11242
    (718) 725-9601
    Divorce Attorneys
    Smith Robin C
    25 8th Ave # B
    Brooklyn, NY 11217
    (718) 403-9599
    Attorneys, Criminal Law Attorneys, Family Law Attorneys, Legal Service Plans
    Donald Zuniga
    147 Prince St Ste 16
    Brooklyn, NY 11201
    (212) 361-9558
    Divorce Attorneys
    Wims David C
    1430 Pitkin Ave
    Brooklyn, NY 11233
    (646) 393-9550
    Attorneys, General Practice Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US