An LLC is short for limited liability company and it is a business structure that has many benefits.
An LLC is a business organization of one or more persons who want limited liability for the contractual obligations and liabilities of the business.
Generally speaking, the largest benefit of an LLC is its hybrid nature – it essentially combines corporation-style limited liability with partnership-style flexibility.
The LLC has largely replaced partnerships due to that appeal.
Most importantly, LLC’s are separate and distinct from their owners, which are called members.
LLCs are formed by filing an Articles of Organization with the New York Department of State.
Your LLC’s Operating Agreement will name the Members and control how the LLC will conduct its business, including financial and tax matters.
The management of your LLC is also outlined in your Operating Agreement – it can be managed by the Members or by one or more designated managers.
If you are considering forming an LLC, you should also consider hiring a lawyer. Your Articles of Organization have legal effect and your Operating Agreement creates legally enforceable rights and responsibilities. These are not business documents you want to get wrong.
If you’d like to discuss whether an LLC is right for your business, give us a call.
Phone: (518) 855-3535