When starting a business, your first step is to curate your business plan together with your chosen business structure. Between the two, the business structure could be the most challenging aspect you need to consider. You need to do research as much as possible to come up with a legal structure that fits your business.
If you’re currently living in the Big Apple, you might have already considered forming an LLC for your business in New York. It became your option may be because you find it the most affordable way to legally structure your business. Although you are right, filing your business as an LLC still has other great benefits you might not be aware of.
Most startups prefer Limited Liability Company over other legal structures. They have their reasons why and these could be the following benefits they want to enjoy.
Given the fact that it is affordable, an LLC is also easy and simple to form. Start with filing the Articles of Organization, your business name, a registered agent, and you are ready to go!
In submitting your Articles of Organization to the Secretary of State, you need to pay the filing fee. The LLC cost NY is $200 and you can file either through a professional LLC formation service or you can do it yourself. Meanwhile, the state will also need publication costs, permits, and licenses that come in three types – federal, state, and local.
Have you ever heard of pass-through taxation? This is where the tax can be passed through from the business to its owner’s personal tax return. Therefore, the profits will be taxed based on your personal tax return rates.
If an LLC is owned by a single member, the business will be taxed like that of a sole proprietorship. You only need to file a report with your losses, profits, and deductions and file it with your personal tax return.
As a business owner, you surely have control over all the operations of your business. However, business is business, there are times wherein you need to deal with debt and some ungrateful clients that will haunt you on legal courts. If this happens and gets worse, you should not worry because you have personal asset protection.
If your business needs the involvement of money, property, and investment, your personal assets won’t be at risk or used to cover things up. This is why an LLC is famous for saving startups and new entrepreneurs.
When your business is registered as an LLC, your customers automatically know that you are legitimate. As a result, they will trust you immediately, leading to wider opportunities. Likewise, your business will also have an official name that will represent you wherever you transact.
If you’re finally convinced that an LLC is the best business structure for you, start gathering the necessary documents you’ll need to make the filing process a breeze. Once you have successfully formed your LLC, your business can now enjoy the above benefits. Forming this type of business structure isn’t that hard, and choosing it to legally organize your commerce is a smart move after all.
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