Forming an entity is a very important step to not only growing your business but in protecting you. But, what should you do? Should you incorporate? Should you form a Limited Liability Corporation? A partnership? What are the differences between them, and how will they affect my taxes? These are all important questions on which the Law Offices of Joshua Dubs, PLLC can advise you.
A corporation is an organization governed by a shareholders. Corporations are formed by filing certain documents with the state and by electing a board of directors, who appoint the leadership of the corporation. Corporations can be taxed as separate entities, or the taxes can be passed on directly to the shareholders. But, there are certain obligations and responsibilities for corporations.
A limited liability corporation is formed by filing articles of organization with the state, then fulfilling certain publication requirements as set out in New York Law. LLCs, like corporations, can be taxed directly or the tax obligations can be passed down to its members. LLCs have added protections for its members, but there are different, sometimes more complex responsibilities associated with LLCs.
A partnership is an organization which is not filed with the state. Instead, it is governed by a partnership agreement, and each partner is responsible for their own tax liabilities. This type of organization has its own positives and pitfalls, tax-wise and liability-wise.
Which type of organization is appropriate for your business? Call Attorney Joshua Dubs for a free consultation to discuss the different options, and how each would benefit your business.