When deciding which business type works for you, be it an LLC New York or otherwise, you have to think about your organizational goals. Also, consider how the local and state laws will affect your choice. Today, we look at all options available to you and their features:
Below, we have covered the most prevalent New York LLC type of business and their most prominent features.
These structures are seen as separate from their owners, and they thus enjoy rights individual from yours. As such, these can sue and be sued. They even have the right to sell and own properties, including stocks. Not all corporations are the same, and they fall under B, C corporations, S corporations, closed and non-profit structures, all of which operate by a different set of rules.
Owners of such entities enjoy continuity, such that even in their death, the organization can still run by transferring the deceased’s shares to another person. This continuity appeals to consumers, creditors, and investors who want to work with stable companies. Additionally, it is much easier to raise capital for such structures, which also enjoy limited liability. You would not be liable for any claims against the business.
This structure falls under corporations and is also considered an independent entity, sharing the rights and advantages outlined under corporations. However, it takes on a different route in its operations by helping people out to some extent. For this reason, it enjoys tax exemptions. The goal of such an organization is to engage in businesses that are not aimed at turning profits but rather aiding society.
This form of setup enables you to limit your liability against claims made on the business. Furthermore, you can also choose how you want to get taxed while enjoying flexibility in running your operations and adding more people to the organization. As long as you do not act in an illegal or unethical manner when handling business transactions, there is no reason why you would be held personally liable for any of the LLC New York debts. The fact that you can have your earnings and losses passed to your returns makes this an even better choice.
Partnerships come in several forms- general and limited. In the first case, two or more people engage in a business where all people share rights and responsibilities. If an organization gets sued, all members are held liable for the actions of the company. On the plus side, a GP in New York requires minimal paperwork, is easy to get started, has growth potential, and flexibility when filing taxes.
Such an entity is just like any other partnership, only that some members have more control over the operations and are held liable when things go wrong. The other LP in New York members contribute to running the operations, albeit to a small extent, and are subject to receiving a share of the profits.
When you form a sole proprietorship in New York, there is no distinction between you and the business, making you liable for profits and debts. It is a simple setup that works for anyone who wants to be their boss or does not want to incur high startup costs. Please note that the lack of separation between you and the business makes you liable for anything that goes wrong when running the operations.
It’s easy to set up and exit this structure which also costs a minimal amount. Plus, you can benefit from a range of tax deductions.
A New York state LLC offers some benefits you may not find in other setups. These include:
Furthermore, this setup can run in perpetuity and allows you to raise funds by offering shares to the public.
A DBA (doing business as) name is essential if you want to change your business name or introduce another identifier for your organization. There are several reasons why one would want to register a DBA. For example, if a company currently sells high-value goods and intends to introduce a low-value goods line, another name may be necessary. The original name can work for the high-value goods, while the DBA for your New York LLC would work for the new marketing line.
While it might be confusing, a DBA New York state is an alternative name for your business but does not amount to forming another entity. The rules applicable to your organization remain the same. Getting DBAs in this state can help you expand into other markets or even introduce a new product line under from the main company.
In this state, DBAs are known as assumed names. You can make a New York state DBA application via:
You cannot register a DBA online in New York, and you have to make do with mailing the application.
First, you have to go through the state’s database and ensure your DBA for an LLC in New York is available before completing the Certificate of Assumed Name form. You can now mail or fax this to the Division of Corporations for a fee of $25.
New York State Department of State
Division of Corporations
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231
Alternatively, you can deliver the fictitious name form in person.