While you are planning to set up LLC in NYC, you must understand what an LLC is and the benefits you could enjoy from LLC. LLC is a popular choice among the people who are planning to establish a business. With the establishment of an LLC, the members could benefit from a flexible organization and limited liability.
In LLC, there is no maximum number of members and is also known as a hybrid business structure. The most effective thing about forming an LLC is that it is a separate entity and is similar to a corporation. With LLC, you could get the credibility and ability to deduct health insurance premiums.
You must know that when there are two or more members in your LLC, then your company will need to obtain different documents for tax purposes. Limited Liability Company includes some of the tax responsibilities as mentioned below:-
- An LLC is treated as a limited liability partnership
- It is also treated as a corporation for federal tax purpose
- It is treated as a sole proprietorship personal income tax returns
Limited liability Company in New York is treated as a corporation or limited liability partnership and is subjected to New York personal Income Tax Corporate Franchise Tax. The best thing is that you could choose the LLC as per the type of taxation. To start the limited liability company, you could effectively get the complete details about LLC’s pros and cons.