*For assistance with New York Limited Liability Companies, call (347) 878-9324. I offer flat fees for particular services.
LLC Basic
1. What is a Limited Liability Company
In New York, a Limited Liability Company (LLC) is defined as an “unincorporated organization of one or more persons having limited liability for the contractual obligations and other liabilities of the business.”[1]
Essentially, a Limited Liability Company (LLC) combines two highly sought after properties of corporations and partnerships; that is, flow through taxation and limited liability.
Since July, 26 1994, the LLC has been available in New York. LLCs are governed by the New York Limited Liability Company Law.
3. For What Purpose can an LLC be Formed?
An LLC can be formed for any lawful business purpose except for banking institutions or insurance companies. Business means “every trade, occupation, profession, or commercial activity.” However, “limited liability investment companies” (LLICs) may be formed by five or more persons with adequate capital.[2] Many particular rules apply to LLICs, which is outside the scope of this FAQ.
2. What Powers Does an LLC Have? What Can An LLC Do?
The LLCs powers are very broad. For example, unless the members decide otherwise, an LLC can (1) sue or be sued; (2) purchase, hold, and sell property including shares and securities dealt by people and governments; (3) make contracts; (4) lend money; (5) conduct business and carry on its operations in any state or foreign country.
*For assistance with New York Limited Liability Companies, call (347) 878-9324. I offer flat fees for particular services.
LLC Basic
1. What is a Limited Liability Company
In New York, a Limited Liability Company (LLC) is defined as an “unincorporated organization of one or more persons having limited liability for the contractual obligations and other liabilities of the business.”[1]
Essentially, a Limited Liability Company (LLC) combines two highly sought after properties of corporations and partnerships; that is, flow through taxation and limited liability.
Since July, 26 1994, the LLC has been available in New York. LLCs are governed by the New York Limited Liability Company Law.
3. For What Purpose can an LLC be Formed?
An LLC can be formed for any lawful business purpose except for banking institutions or insurance companies. Business means “every trade, occupation, profession, or commercial activity.” However, “limited liability investment companies” (LLICs) may be formed by five or more persons with adequate capital.[2] Many particular rules apply to LLICs, which is outside the scope of this FAQ.
2. What Powers Does an LLC Have? What Can An LLC Do?
The LLCs powers are very broad. For example, unless the members decide otherwise, an LLC can (1) sue or be sued; (2) purchase, hold, and sell property including shares and securities dealt by people and governments; (3) make contracts; (4) lend money; (5) conduct business and carry on its operations in any state or foreign country.
[1] Limited Liability Company Law § 102(m).
[2] Banking Law §§ 507, 4001(a).