BUSINESS FORMATION
Whether you want to form a corporation (S-corp or C-corp), limited liability company(LLC), limited liability partnership (LLP), general partnership, or other business entity, Harary Law has the expertise to guide you through determining the entity type that is best suited for your business.
Harary Law starts by learning about your business needs and then advises on the pros and cons of each business entity. Deciding how to legally organize your business venture depends on a number of factors including:
· nature of the business and future goals
· start-up costs
· personal liability tolerance
· likelihood of taking on investors
· tax options such as pass-through taxation or business write offs (we will work together with your tax professional!)
Harary Law is dedicated to helping you make the right decisions for your business.
What is a Corporation?
A corporation is a legal entity authorized by a state to act as a single entity, separate and distinct from its owners. Corporations come in all shapes and sizes, but are most commonly seen as S-corps, C-corps, non-profit corporations, and LLCs. In the eyes of the law, a corporation acts very much like an independent individual. In a way, organizing your business into a corporation breathes life into your company and forms a “legal person.” Your corporation has all the rights and protections afforded to the individual person- it can sue and be sued, it can borrow money, hire employees, pay taxes, and possess assets. The type of corporation you form can also be restricted based upon the industry of your business.
Speak with a Harary Law attorney today to learn the best strategy for your business formation.
What is a Limited Liability Company?
Limited Liability Companies (LLCs) are unincorporated business organizations that are somewhat of a hybrid between more formal corporate structures and the less formal relationship of partnerships. The members or the organizers of the LLC (can be one or more persons) have limited liability for the contractual obligations and other liabilities of their business. In New York, the Limited Liability Company Law governs the formation and operation of an LLC. Parties seeking to form an LLC file a copy of their Articles of Organization, pursuant to Section 203 of the Limited Liability Company Law, with the Department of State. An LLC may organize for any lawful business purpose or purposes. Whether you are forming a single-member LLC or one with several members (individuals), one of the most critical parts of forming an LLC is the preparation of the Operating Agreement. Consult with Harary Law about drafting an effective operating agreement for your LLC.
What is a PLLC?
A Professional Limited Liability Company acts very much like an LLC but only for an organization that provides professional service or services that the professionals are authorized to practice. It is an LLC for professionals. A PLLC cannot be formed if you do not have a professional license. A PLLC is formed by filing Articles of Organization pursuant to Section 1203 of the Limited Liability Company Law. PLLCs are most commonly formed for a law office of a medical office. For a listing of professional services, please see NYS Department of Education, Office of the Professions.
What are some business formations other than an LLC or an LLP?
Less common business structures include general partnerships, limited partnerships, limited liability partnerships, sole proprietors, and unincorporated associations. Each form of organization comes with its own positive and negatives. It is important that you research each type of business entity before deciding which to pursue. Speaking with a competent attorney about your business formation could be your best option.