LLC publication is an essential thing that all the new businesses who like to do business in New York have to follow. Registering your newly formed LLC under the statute is a lengthy process, but if you know the things that go in it, it can be completed in a very simple way. Many businesses avoid or post pone to complete the procedure for the reasons of its cost and hassle. But that will lead you to penalties by the state. While some businesses prefer for a service agent to complete the registration, these can by the LLC itself provided they have some working knowledge of forms and applications for New York LLC publication.
Things you need to know:
- LLC publication is a must for all businesses in New York. Hence, it is importance to what exactly is LLC. LLC is a Limited Liability company that can have a single owner or some members in unincorporated business. The formation of an LLC is governed by the Limited Liability Company Law of New York. Under this law, the members of the LLC have liabilities, obligations as per the contract and a distributed share of management and the finances of business like profits or loss/credits and debts. LLC has a flexible management structure and the members can decide on who gets the management rights. It has flexible law system and the members can also report federal tax returns.
- Knowing the advantages and disadvantages of LLC publication will help you make decisions. Some advantages of LLC publication are flexibility in management structure where the members decide on the rights of management, have an agreement on distribution and sharing profits/interest earned/ lose/ credits and debts of the business, choosing the taxing system and the limited personal liability that comes with LLC publication. Transferring assets in and out without any tax is another added advantage of New York LLC publication. LLC can also choose the type of taxing and avoid double taxation after publication.
Disadvantages of LLC publication is the taxation where self-employment taxes applicable for the members of LLC and the LLC also pays a franchise tax for the benefit of limited liability which is based on the revenue.
- While LLC is suitable to any type of business, small or big, there are some options where you can avoid LLC. For example, if you have plans of converting your LLC to corporation in future, you rather get it registered under the corporation at first because if you do it later, then you may face some taxes for the conversion. Another example is, businesses financed by capital venture firms can also skip this due to the tax restrictions for venture capital firms. Owner of LLC can also be done by one person.
- You will be taxed as a sole proprietor if you are the only member in your business. For this, you can distribute some small percentage of shares among your close friends and relatives. Remember that your spouse cannot be included in this.