New York Limited Liability Company-Major Advantages

New York LLC A Tax Haven

September 2, 2004
By Akhilesh Goenka

The first step in forming a New York Limited Liability Company is the significant aspect of choosing a good name. The company name should include, at the ending "Limited Liability Company" or the abbreviation "LLC". The name must be different from other firms having the same business structure.

It is said to be organized once the original articles of organization and one exact or conformed copy is delivered to the Corporations Division of the Secretary of State by one or more persons and signed by one or more organizers. The original articles of organization will in turn be filed with the Secretary of State. A certificate of organization will be issued and delivered along with the conformed copy to the representative of the LLC.

A major advantage of forming a Limited Liability Company is that the individual has a distinct identity from the company. It helps in the sense that the owners and managers of the company are protected from being personally liable. A Limited Liability Company in New York can provide a legal protection between business life and personal life. For the formation of such a company the articles of organization must be signed by at least two persons.

The member can only resign from a limited liability company if it is in accordance with the operating agreement. He cannot pull out from the company prior to dissolution and winding up unless it is mentioned by the operating agreement. The assistance by a member to the company may consist of property, cash or services rendered or a promissory note.

The LLC based in New York has another significant advantage than other businesses because here the member is able to get more tax deductions than any other place. There is a wide range of tax deductions for the owners as well as the employees. There are various benefits like travel deductions, automobile deductions, health insurance deductions, entertainment deductions, etc.

There are various provisions in the law for a Limited Liability Company, which protects the members from being sued personally. Since there two separate legal entities, lawsuits framed in opposition to the company need not affect the owner personally. A limited liability company brings along with a sense of continuity.