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Advantages And Disadvantages Of Business Entity Formation

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Entity Formation
A New York Law Firm Providing Businesses Entity Formation Services
When starting a business, choosing the correct entity can have a significant impact on its ultimate success and the personal liability of its founder or members. Business entities are created under state law, and New York offers entrepreneurs a number of options, including partnerships, limited partnerships, limited liability companies, and corporations. These various entities provide different advantages and disadvantages in terms of personal liability for businesses debts, tax liability, formation cost, and reporting requirements, and people who are considering creating a business entity should carefully consider all of their options. To this end, the assistance …show more content…

A limited partnership must have at least one general partner. All general partners in a limited partnership are jointly and individually liable for any business debts. Limited partners, on the other hand, are only liable to the extent of their capital contribution to the business. To form a limited partnership in New York, you must file a Certificate of Limited Partnership (after entering into a partnership agreement) and a Certification of Publication with the New York Department of State. For tax purposes, a limited partnership is disregarded and any income generated by the business is distributed on each partner’s personal tax …show more content…

Many of the required filings are complicated, and any errors can result in a significant delay in getting your business up and running. In addition, the assistance of an attorney is essential when it comes to ensuring that documents like operating agreements, partnership agreements, or corporate bylaws accurately reflect your wishes. Finally, if you fail to form your LLC, limited partnership, or corporation correctly or fail to follow the various formalities required by the law once you are in businesses, you and others involved in your venture may face personal liability for certain business debts.
Call Today to Speak With a New York Business Entity Formation Lawyer
If you are considering forming a business entity in the state of New York, speak to an attorney as soon as you can. The Braverman Law Firm combines the skill, experience, and aggressiveness that you usually find at a larger firm with the responsiveness and personal attention only a boutique law firm can provide. To schedule a consultation with an experienced New York business attorney, call Braverman Law PC today at (212) 206-8166 or send us an email through our online contact

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