LLC is abbreviated form of Limited Liability Company. It is a private company in United States. It facilitates the owner or the proprietor of any business or company with limited liabilities on his business and protects owner’s personal properties from creditors while they have liabilities or debts on their business. It is a simple business structure which is more flexible and convinient than S or C corporations.
LLC provides following perks:
- Pass through taxes
- Limited liabilities
- Protection of business owner’s personal properties and assets.
Do you have a question about should you create an LLC or not?
Before you think of creating LLC you should know about your business goals. You need to decide that your business goals are long term or short term. LLC keeps you safezoned from the creditors. And also gives owner protection from liablities and debts. LLC is a smart and wise choice which can help you start a small business. It protects the owner from the future failures in the business if happens. Visit here https://windsorcorporateservices.com/form-an-llc-in-ny/ to know more details
Advantages of LLC:
- The company owner will have less liabilties for LLC’s debts and liabilities.
- LLC chnages the tax charging strategies, taxes will be paid considering ownwr’s tax returns and not on the basis of business.
- It allows the losses to be shared amongst all the owners which reduce headache of a single owner.
- It allows any number of owners with no restrictions.
- Less paper work is required as compared to C and S corporations.
- Fast and easy set up especially if talk about city New York, there it is very simple to fill out asll the documentation quckly.
- LLC provides flexibility in management structure of the company
How can you create LLC?
- To create an LLC you need to go through following criteria
- First thing you need to do is to decide and select a name which will be reserved upto you. This work is mostly done by Secretary of state.
- You will have to provide a certain amount of payment to the organization price for creating an LLC.
- Then you have to prepare outline of your articles which are on incorporation under guidance of secretary of state.
- Now, next you have to make decision about who will be running the business including the mannagers and workers who will be taking care of the business.
- Then you have to make decision about who will be the partners will own LLC with you or you will do it alone.
- Then you should make application for availing business license and all other required certificate.
- After that you need to get an EIN (Employer Identification Number), for that you can either apply offline by SS-4 also online application can be made.
- Now apply for ID numbers which are asked for LLC application by state or local government.
- Now, if you possess all the documents and drafts you need for LLC you can form a LLC.
So, it is wise to get an LLC created before you start a business to be on the safer side.