LLCs seem to be a highly favorable entity, as it regards to PPP Loan type of applications and procedures?

John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

 

Kiritsis Law Group  

212 922 0005

 

Deciding on the correct business entity can be a difficult decision to make. LLCs have rapidly become the preeminent entity of choice among small and midsize businesses. Forming your business as an LLC will give you the flexibility to run a successful business. An LLC limits the business owner’s personal liability protecting their personal assets if the company is sued or files for bankruptcy.

 

What are the benefits of forming your business as an LLC?

 

Personal Liability Protection

The most important benefit is the protection of the owner's personal assets from creditors.  

 

Pass-Through Taxation

The tax benefit an LLC provides its owners is that they are not subject to the double taxation corporations' experience. The business’s income is reported on the owner’s personal income tax return. 

 

Flexible Ownership

An LLC can either be member-managed or manager-managed. A member-managed LLC means the owners are responsible for the business's day-to-day operations. A manager-managed LLC implies the business is run by someone who is not an owner of the LLC.  

 

Steps to form an LLC

Decide in which state you will form your LLC

Most LLC owners decide to form their LLC in the state they will be doing business. 

 

Choose your LLC name

You must check your State’s records to check whether your name is available. 

 

Draft an Operating Agreement

This document describes how the LLC will be operated. It will clearly define the division of ownership, profit distributions, membership transfers, and how disputes between the members will be handled. 

 

Phone: 212 922 0005

Manhattan Office (Main Office):                                                                                                                                                                           

633 Third Avenue

New York, NY 10017

Suite 1306

 

 

Brooklyn Office (By Appointment Only):

1023 74th Street

Brooklyn, NY 11228

1st Floor

 

 

New Jersey Office:

7309 Ventnor Avenue

Ventnor, NJ 08406

2nd Floor

 

 

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

 

The views expressed by this author are not legally binding or reflective of the author, the author’s firm, the author’s employers, the author’s employees, or any individual and/or organization.