Kiritsis & Associates
WHAT TYPE OF BUSINESS ORGANIZATIONS MAY NOT BE BEST SUITED TO BE OPERATED AS LIMITED LIABILITY COMPANIES?
By John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M
Kiritsis Law Group
212 922 0005
Limited liability companies (LLCs) are a popular business structure for small and medium-sized businesses, but they may not be the best choice for every type of business. Here are some types of businesses that may not be well-suited to be structured as LLCs:
Publicly-traded companies: LLCs are typically not appropriate for businesses that plan to go public, as they do not provide the same level of transparency and accountability as corporations.
Banks and other financial institutions: LLCs are generally not appropriate for banks and other financial institutions, as these types of businesses are subject to more stringent regulations and oversight.
Non-profits: LLCs are not typically suitable for non-profit organizations, as they are designed for for-profit businesses.
Businesses with many owners: LLCs can be difficult to manage if there are many owners, as the management structure can become complex and difficult to navigate.
Businesses seeking venture capital: LLCs may not be the best choice for businesses seeking venture capital, as investors typically prefer to invest in corporations.
It's important to note that the suitability of an LLC as a business structure will depend on a variety of factors, including the size, nature, and goals of the business, as well as the specific laws and regulations in your state. It's always a good idea to consult with a business attorney or accountant to determine the best structure for your business.
Sources:
New York Business Corporation Law
New York Limited Liability Company
New York General Obligations Law
NYS Office of Professions
U.S. Constitution
Whether you are a new business startup or a well-established company, our law firm can help you with all of your business law legal needs. For a free consultation, you can call us at 212 922 0005.
Law Offices of Kiritsis & Associates
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.
We hope you would find this website useful with regards to finding potentially relevant information for your legal issue. The Law Offices of Kiritsis & Associates PLLC is a boutique law firm headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey. We strive to provide professional legal services for individuals and various business entities. Our clientele ranges from including aspiring entrepreneurs, start ups to established business organizations.
We offer flat fee prices for many of the practice areas provided listed throughout our website. For more information on the topic you may be interested, or simply to find out how our law firm can help, you may click at any of our site's links.
We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person.
Phone# 212-922-0005
Intellectual Property Disclaimer(s):
COPYRIGHT 2023
The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws. You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis. Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced. All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.