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 New Hyde Park, NY

Benefits of a Limited Liability Company (LLC) in New Hyde Park, 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 New Hyde Park, NY
    Harry M. Alberts, Attorney
    1825 New Hyde Park Rd
    New Hyde Park, NY 11040
    (516) 424-8921
    Employee Benefits & Worker Compensation Attorneys, Attorneys, Labor & Employment Law Attorneys
    Divone Mary Ellen
    515 Herricks Rd
    New Hyde Park, NY 11040
    (516) 294-8015
    Attorneys,  Real Estate Buyer Brokers,  General Practice Attorneys,  Legal Service Plans
    Fastman Harley
    2001 Marcus Ave
    New Hyde Park, NY 11042
    (516) 437-7300
    Attorneys, Business Law Attorneys, Legal Service Plans, General Practice Attorneys
    Solomon Richman PC
    3000 Marcus Ave #1E5
    New Hyde Park, NY 11042
    (516) 437-6443
    Criminal Law Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Business La
    Nelson Alan M
    3000 Marcus Ave # 1E5
    New Hyde Park, NY 11042
    (516) 328-6200
    General Practice Attorneys, Attorneys
    Blyer Steven R
    3000 Marcus Ave # 2E5
    New Hyde Park, NY 11042
    (516) 354-5666
    Attorneys, Legal Service Plans
    Macklin John
    5 Morris Dr
    New Hyde Park, NY 11040
    (516) 248-5640
    Attorneys, Legal Service Plans
    Loloey Aaron
    3000 Marcus Ave # 3W4
    New Hyde Park, NY 11042
    (516) 354-5454
    Attorneys
    Reiter Mitchell B
    1985 Marcus Ave
    New Hyde Park, NY 11042
    (516) 336-5402
    General Practice Attorneys, Attorneys
    Wright Brian T
    1979 Marcus Ave # 210
    New Hyde Park, NY 11042
    (718) 426-4878
    General Practice Attorneys, Attorneys, Legal Service Plans
    Chet Lukaszewski PC
    3000 Marcus Ave Ste 1E5
    New Hyde Park, NY 11042
    (516) 775-4725
    General Practice Attorneys, Attorneys, Legal Service Plans
    Streisfeld Jeffrey D
    3000 Marcus Ave # 2E7
    New Hyde Park, NY 11042
    (516) 354-4600
    General Practice Attorneys, Attorneys, Legal Service Plans
    Beerman Alen R
    3000 Marcus Ave # 3W6
    New Hyde Park, NY 11042
    (516) 327-4600
    General Practice Attorneys, Attorneys
    Rubien Milton
    3000 Marcus Ave
    New Hyde Park, NY 11042
    (516) 437-4200
    Attorneys, Legal Service Plans
    Mc Donnell Adels & Goodstein
    5 Dakota Dr
    New Hyde Park, NY 11042
    (516) 328-3500
    General Practice Attorneys, Attorneys
    Ahmuty Jr, Steven J - Shaub Ahmuty Citrin & Spratt
    1981 Marcus Ave # 227
    New Hyde Park, NY 11042
    (516) 488-3300
    Attorneys, Legal Service Plans
    Thomas & Graham Law Office
    1983 Marcus Ave # C122
    New Hyde Park, NY 11042
    (516) 502-2620
    Attorneys, Criminal Law Attorneys, Malpractice Law Attorneys, Attorneys Referral & Information Servi
    Dikman & Dikman
    5 Dakota Dr # 208
    New Hyde Park, NY 11042
    (516) 354-2526
    Attorneys, Divorce Attorneys, Criminal Law Attorneys
    Abrams, Fensterman, Fensterman, Eisman, Greenberg, Formato & Einiger, LLP
    1111 Marcus Ave Ste 107
    New Hyde Park, NY 11042
    (516) 328-2300
    Attorneys, Legal Service Plans
    Nancy Sherman
    1979 Marcus Ave Ste 210
    New Hyde Park, NY 11042
    (516) 622-2225
    General Practice Attorneys, Attorneys, Legal Service Plans
    Bazhdari Mergim
    1111 Marcus Ave # Ll08
    New Hyde Park, NY 11042
    (516) 775-1555
    Attorneys, Legal Service Plans
    Silverman David L
    2001 Marcus Ave Ste 265A
    New Hyde Park, NY 11042
    (516) 355-0110
    Attorneys, Tax Attorneys, Estate Planning Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US