While starting a business is one of the most exciting chapters of your life, it’s important to focus on the right structure for your New York business.
The legal structure that you choose for your business will have implications on your taxes, personal liability, and the opportunities to raise capital.
This isn’t a decision to be entered into lightly and it’s the perfect time to reach out to a seasoned New York business attorney to offer the right advice for your the establishment of your New York business.
The COVID-19 pandemic has presented some interesting opportunities for entrepreneurs in the New York market to purchase assets and office space at a reduced rate.
Below are some of the basic business ownership structures used by many small businesses in New York.
Sole Proprietorships in New York
A sole proprietorship is a single individual who owns the business. Generally, a sole owner shall run their own business with no full-time employees. There is no limited liability and as a sole trader, you are personally liable for any losses to your business. This form of business, is normally not advisable for the majority of growing businesses.
General Partnerships in New York
A general partnership can include one or several partners. A general partnership can be formed between companies or individuals. All members of the partnership will have a responsibility towards the actions of one or all of the partners within the organization. This form of business is, often, chosen by professionals and, also, in some F & B and real estate investment companies.
Limited Partnership in New York
Limited partnerships are similar to LLCs, but also include silent partners and contractual agreements on profit distribution. They also include specific agreements on the management of the organization. We shall update the reader on Limited Partnerships via a separate post over the next couple of weeks.
NY Limited Liability Company (LLC)
A Limited Liability Company is a legally separated entity from its owners . As opposed to sole proprietorships, the owners of an LLC are protected by limited liability. While owners are afforded greater protection from liability. A LLC, in many cases, unlike the typical corporate forms is
When you are ready to start your business in New York, do your due diligence. Our managing partner, Sean Hayes, gives practical advice on doing your Due Diligence in New York.
If you would like to have a consultation with an attorney from Hayes & Simon, PC please Contact Us or Schedule a Call with an Attorney. Hayes & Simon is involved in opening companies, structuring joint ventures and partnerships in NY, New Jersey, Connecticut, China, Hong Kong, South Korea, and throughout Southeast Asia.
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