A Limited Liability Company, often known as an LLC, is a type of business structure that allows a business to have the limited liability of a corporation and the pass-through taxation of a partnership or sole proprietorship. So what, exactly, does this mean for you and your business? Why should one file to become an LLC?
We The People of NY is a Manhattan-based legal document preparation service specializing in the creation and typing of all manner of legal paperwork; here they share some insight into LLCs and how they can work for you:
- Protect Your Liability: With an LLC designation, business owners and managers are considered separate legal entities from the business itself. If an LLC is sued, the personal liability of owners and managers is protected. This means you can't be sued personally, only as part of your separate legal business.
- Tax Benefits: There are tax advantages to be had with an LLC designation. Not only are LLCs audited much less frequently than sole proprietorships, but you can more easily write off business trips, medical costs, pensions, and more. The first step in forming an LLC is ensuring you have all the necessary documentation to file; this is where We The People of NY can help.
- Better Access To Capital: An LLC is more attractive to potential investors. Those looking to pour capital into a business feel less risk when dealing with an LLC, since personal liability is limited and protected. More avenues to capital are available to LLCs than to partnerships or sole proprietorships.
Become an LLC today. Start by preparing your legal paperwork with We The People of NY. Call (212) 633-2200 or visit their website to see how they can help you take your business to the next level. We The People of NY also prepares wills, deeds, divorce papers, name change documents, and other paperwork.