Starting a new business is exciting and filled with possibilities. If you have considered embarking on this entrepreneurial adventure, you may have thought about how you should go about forming your business. There are several options for what type of business you should form. One of the most popular options is a Limited Liability Corporation (LLC). An LLC is a popular choice because it is more flexible and involves less bureaucratic hurdles than other corporate business structures. Additionally, LLCs are usually taxed as pass-through entitles. New York State law has minimal requirements for LLC operating agreements.
An LLC can protect you from personal exposure should your business ever be sued or experience financial troubles. Deciding whether to set your business up as an LLC is important and the pros and cons should be weighed. Consult the knowledgeable business law attorneys at Tand and Associates and get reliable legal counsel on the proper way to set up your business.
What Do I Need to Do to Set Up an LLC?
Your LLC is formed when you file the company’s Articles of Organization with the New York State Department of State. In addition to creating and submitting the Articles of Organization, you will need to:
- Choose a company name: The Department of State must approve your company name and will not do so if another New York company, including corporations and limited partnerships, has already claimed the name. Additionally, your name will not be approved if it could easily be confused with a previously existing trademark.
- Get a Federal Tax Identification Number (EIN): You will need this to file taxes for your business and also to open up a business bank account.
- Open a business bank account: Once you have the EIN for your LLC, open a separate business bank account. Comingling personal funds with business funds puts your limited liability status in jeopardy.
- Pay all third party fees: Fees need to be paid for expedited formation of the LLC in the State of New York. Additionally, you must fulfill the New York State publication requirement for LLCs and pay all fees associated with doing so.
- LLC Operating Agreement: Create this document which establishes the rights and responsibilities of the LLC owners.
In addition to completing the above, it is important for you to know how you can effectively preserve the limited liability status of your LLC. Taking measures to keep your limited liability status secure is important to protecting the integrity of the company and also maintaining the protection it affords you from being held personally liable.
Helping Startups Build Their Business the Right Way.
If you are considering starting your own business, contact the knowledgeable business law attorneys at Tand and Associates P.C. Our attorneys will help make sure your business starts off on the right foot, complying with all legal requirements and figuring out what type of business entity will best suit your needs.