Many smaller businesses choose to start off as a limited liability company (LLC). An LLC offers a more flexible structure than a C-Corp. You can divide profits and losses as you like, have fewer official meetings and less paperwork, and yet protect your assets through limited liability.
Even better, LLCs are “pass-through” entities for the purpose of taxation, meaning that profits or losses pass through to the shareholders. This is significant if the business isn’t making a lot of money or incurs a loss because individuals may take that loss against other income on their tax returns. If you’re a small business starting out in New York, you’ll probably want to register as an LLC.
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