Starting a new business is an ingrained part of the American dream. Whether you’re taking your first stab at being an entrepreneur or purchasing an established enterprise, you will have to choose a structure for your business.
The Limited Liability Company structure is a popular option that comes with several advantages for small-business owners. This is particularly true for companies that are exposed to potential lawsuits or whose business has a high potential for falling into debt.
If you own an LLC, then you will not be personally responsible for your company’s debts, which means that collectors cannot come after your personal bank accounts or assets. In general, the only exception to this would be if an LLC owner acted illegally or unethically. Although the LLC entity structure protects your personal finances and assets, your business assets would still be at risk
There are also tax benefits of forming an LLC. While corporations are usually subject to corporate tax, LLC owners report the losses and profits of their business on their personal income tax returns, thus preventing double-taxation.
If you would like to find out if the Limited Liability Company structure is right for your business, or if you have questions about C Corporations or S Corporations, contact Solomon Richman P.C. A business attorney in Long Island will provide comprehensive legal guidance to minimize your tax liability and protect your financial interests. Call 516-437-6443 today to arrange a free initial consultation.
Is the LLC Structure Right for My Business?
As outlined by Inc.com, there are many situations in which the Limited Liability Company structure is ideal. For instance, if you own a store and a customer suffers an injury in a slip and fall, the customer may file a lawsuit against your business and win. The economic and non-economic damages could be exorbitant, but you will not be personally liable for them if your business is an LLC. Corporations usually have this same protection, but LLCs are simpler and, as a result, are better for most small-business owners.
If you work in a “professional service,” meaning that you must have a license or specific credentials to provide your service, then you must form a PLLC rather than an LLC. PLLC stands for “Professional Service Limited Liability Company.” Examples of professional services include but are not limited to:
- Marriage and family therapists;
- Psychologists; and
If you have questions about forming a Limited Liability Company or PLLC, turn to Solomon Richman P.C. Our law firm has been serving businesses in New York for more than 55 years.
We strive to provide our clients the professionalism expected of a large law firm and the personal touch of a family owned practice. Call 516-437-6443 today to schedule a free initial consultation with a corporate lawyer in Long Island.