As an entrepreneur or business owner, you may be considering forming a limited liability company (LLC) for your new venture. LLC formation has become a popular choice for business owners due to its flexibility and protection. Take a look at the following article, which provides you with more insight into what an LLC entails and the advantages it can provide. 

What is an LLC? 

A limited liability company (LLC) is a business structure that combines the liability protection of a corporation with the tax benefits of a partnership. This means that it is a separate legal entity from its owners, known as members. Members are not personally responsible for the company's debts or liabilities. LLCs are popular because they offer flexibility in management and ownership structure, and there are fewer formalities to follow compared to corporations. 

What Are the Benefits? 

The primary benefit of forming an LLC is liability protection. Members are not personally responsible for the company's debts or liabilities, which means that if the company is sued or goes bankrupt, the members' personal assets are protected. Additionally, LLCs have pass-through taxation, which means that the company's profits and losses are reported on the members' personal tax returns, avoiding double taxation. 

Another benefit of forming an LLC is the flexibility in management and ownership structure. LLCs can be managed by the members themselves, or they can appoint a manager to handle day-to-day operations. Additionally, ownership can be divided into membership interests, which can be sold or transferred without affecting the company's operations. 

How to Form an LLC 

Forming an LLC involves several steps. The first step is to choose a name for the company and check if it is available in your state. You also need to file articles of organization with the state's Secretary of State and pay the required fee. The articles of organization typically include the company's name, address, and the names of the members. Every state has its own requirements for LLC formation regarding fees and legal document preparation, so it’s essential to look up the guidelines for your specific state. 

If you’re interested in LLC formation, We The People of NY can help. This locally owned and operated establishment in New York, NY, can assist you with legal document preparation and has more than 25 years of industry experience. Their knowledgeable staff can help you navigate the process of forming an LLC and ensure that all the necessary steps are taken to protect your business. Contact them at (212) 633-2200 or visit their website for more information.