Choosing between an S Corporation and an LLC

Choosing between an S Corporation and an LLC

Many small business owners end up deciding between a New York S corporation and a New York limited liability company (LLC) when choosing a formal legal structure for their New York business. Both entities offer limited liability and a startup friendly tax treatment. But which entity is right for your small business? The following are some frequently asked questions with respect to the two...

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LLC Operating Agreements

LLC Operating Agreements

Everything you need to know about the LLC Operating Agreement, explained by New York Small Business Lawyer, Imke Ratschko

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Small Business Partnerships -Protecting your Minority Stake

You do not have to rely on the goodness of human kind alone, when going into business with other people.  There are legal (agreements) and practical measures (business common sense)  that you can take to make sure that your business investment in a limited liability company, corporation or other entity does not fall prey to the shenanigans of your fellow – majority –...

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New York LLC Formation

Let us help you with  your New York LLC Formation!  Call us to discuss your legal concerns and any other questions you may have about the process of forming a New York Limited Liability Company.  We are not a paralegal service where you don’t get to speak to a real New York attorney.  We are a small business law firm where every client counts. We will form your New York LLC and get you...

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All you Need to Know About: The LLC Operating Agreement

The LLC Operating Agreement is a key document for a business organized as a New York Limited Liability Company, especially if that business has more than one owner (the owners are “Members” in LLC terminology). If an LLC business was like a marriage, the LLC Operating Agreement would be like a prenup, parenting agreement and divorce settlement all in one. Why you should have an LLC...

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Sole Proprietorship or Single Member LLC?

When you are a one person business, i.e. you are to be the only owner of your business, the question invariably arises:  sole proprietorship or single member LLC? You are a sole proprietorship, as soon as you begin doing business.  There is no filing, no certificate, not even an EIN is required (unless you have employees).  Startup costs couldn’t be any lower. A Limited Liability Company...

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How much does it cost to register an LLC in NY?

Excluding any service fees paid to an attorney (see here for my very reasonable package), the approximate* costs are as follows: New York County (aka Manhattan): $1560 Kings County: $960 Nassau County:  $960 Richmond County:  $1010 Westchester County: $710 Bronx County:  $1360   *approximate, because the total amount depends on the cost of publication which varies....

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The Claim: Multi-Member LLC is better than Single Member LLC Because of Charging Order

Some people seem to suggest that it is always better to form a multi member LLC (more than one owner), rather than a single member LLC.  These people base their opinion on the fact that the so called charging order protection may not be available in a single member LLC.    What is a Charging Order? 3 people form an LLC and run a catering business through the LLC.  Each of...

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S Corporations and New York City

…do not make a match formed in heaven.  New York City does not recognize s-corporations and makes all s corporations liable for its General Corporation Tax to the tune of 8.85%.  Thus, in NYC, an LLC is often the better and more tax friendly alternative for new business owners.  If it weren’t for the costly publication requirement, NYC could finally participate in the national LLC...

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Starting a Nonprofit Organization in New York

Nonprofits are businesses that made it their mission to give away all of their profits to a particular cause, rather than enrich the owners of the business.  Starting a nonprofit organization is in many ways like starting any other small business in New York.  But there are additional steps required in order to get the desired status of "tax exempt" from the IRS, which...

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