The success of your business in New York starts right from its inception. You must carefully work out every detail of your business, from finding a great team and being on the right side of the law. One of the first and most important decisions that you will make is the type of business structure to go with.
Business structures in New York
There are many business structures that you can choose for your company in New York. They include corporations, partnerships, limited liability companies, and sole proprietorships. Each has its own pros and cons; therefore, your decision will depend on the type of business you are stating.
Forming an LLC
Many New Yorkers start LLCs because of the freedom it gives them over their company while at the same time protecting their personal assets. For example, as an LLC owner, you can make business decisions without consulting and needing approval from other partners, and if your company goes into debt, creditors can come for your personal items like your individual bank account or home. LLC formation in New York includes compiling the following:
• A name that contains abbreviations LLC or L.L.C, or the word Limited Liability Company
• An official address to your company
• An article of the organization that includes the name of your company, your address, organizer’s signatures, and the name and address of the person filing your articles
• An operating agreement with the duties, powers, rights, liabilities, and obligations of every member of your company
• An application with the IRS to get your Employer Identification Number
After submitting your articles to the New York Department of State Division of Corporations, the law requires you to publish your LLC in two newspapers. You can either submit a notice that you have formed an LLC or copy your articles. You must do this within 120 days.