Looking to an form LLC? The Jewish Voice is Here to Help You Form Your New Business
Edited by: TJVNews.com
If you are giving serious consideration to creating your own business then you have most probably given some thought to forming an LLC (Limited Liability Corporation). Getting started in the process of obtaining an LLC can seem confusing or overwhelming at times.
The dedicated, experienced and courteous team at the Jewish Voice can assist you in every way in ensuring that your business gets off the ground in a positive and stress free manner. Just contact us at 212-920-6700 or by e-mail at: [email protected] and we will provide you with immediate and highly effective service. We answer all your questions and make this a “smooth as sailing” process.
Here is some information that will be valuable to you when starting your new business.
Forming an LLC helps protect your personal assets. It also unlocks the ability for you to open bank accounts, enter into contracts, hire employees, and get business licenses and permits.
The difference between an LLC and a corporation is that both protect owners so they’re not personally on the hook for business liabilities or debts. The key differences include how they’re owned (LLCs have one or more individual members, and corporations have shareholders) and maintained (corporations generally have more formal record-keeping and reporting requirements).
In terms of tax obligations, single-member LLCs can file as a sole proprietor. Multi-member LLCs can file as a partnership. Any LLC can file as a C or S corporation.
Limited liability companies have become a popular choice for small businesses.
If someone is considering the formation of a business as a sole proprietorship or a partnership, “you and your business are legally the same “person.” Your business debts are also your personal debts. And if your business partner or employee is accused of negligence, your personal assets might be at risk.”
One of the advantages of forming an LCC is that an LLC limits this personal liability because an LLC is legally separate from its owners.
Because LLCs are responsible for their own debts and obligations, and although there is a risk that you can lose the money you have invested in the company, personal assets such as your home and bank account can’t be used to collect on business debts. Your personal assets are also protected if an employee, business partner or the business itself is sued for negligence.
There is also less paperwork involved in forming an LLC.
Corporations also offer limited liability, but they have to observe certain requirements that may not be well suited to a small, informally run business. For instance, corporations typically must hold annual shareholder meetings, make annual reports and pay annual fees to the state. They also tend to have substantial recordkeeping requirements.
In contrast, LLCs don’t have to hold annual meetings and usually are not required to keep extensive records. In many states, LLCs do not need to file annual reports.
