SOURCE: The New York Company

September 26, 2007 13:25 ET

New York Entrepreneurs Fly Solo and Exposed

The New York Company Offers a Safety Net by Forming LLCs and Corporations

NEW YORK, NY--(Marketwire - September 26, 2007) - When New Yorkers start a business, they stand to gain all the rewards from it. However, they also face exposure on many fronts -- all alone. The New York Company (www.thenewyorkcorp.com) helps New Yorkers reduce financial risk by simplifying the process of forming New York limited liability companies (LLCs) and corporations.

There are a number of reasons why New Yorkers should consider forming a New York limited liability company (LLC) or corporation.

--  Safeguard personal assets against creditors and lawsuits. Without an
    LLC or corporation, owners' personal assets (houses, cars, bank accounts,
    etc.) are at risk of being seized any time the company is sued.
--  Ownership in a New York LLC or corporation is private and easily
    transferable. The State of New York does not record owners' names. There is
    no requirement to file or record the transfer of ownership.
--  Dividends and profits are taxed at a lower rate; and are not subject
    to FICA.
--  Income-shifting may decrease taxes. Shifting between personal and
    corporate income can result in lower taxes.
--  Fewer restrictions. The State of New York typically places less
    requirements on operating and capital loss deductions.
--  Health insurance and other fringe benefits. New York LLCs and
    corporations typically gain the ability to deduct the cost of health
    insurance and/or other fringe benefits.
--  No limits on corporate losses. There are no limits on the amount of
    losses a corporation may carry forward to subsequent tax years.
--  Ease in raising capital. Capital from investors can be raised easily
    through the sale of membership interests or corporate stock.
--  Continuous existence. A New York LLC or corporation is capable of
    continuing indefinitely. Existence is not affected by the death of
    member(s)/manager(s), shareholder(s), director(s) or officer(s).
--  Establish credit history. Regardless of your personal credit score,
    you can build a separate credit history for your New York LLC or
    corporation simply by applying for and using company credit.
    

Organizing a business as an LLC or corporation in New York protects the owners' personal assets and allows them to take advantage of tax benefits.

Traditionally, forming an LLC or corporation has meant hiring a lawyer or using a national formation provider that is unable to specialize in each state's unique requirements. However, The New York Company specializes in New York-based entity formation and is more approachable and affordable than other alternatives. The New York Company provides a wealth of formation-related information online at www.thenewyorkcorp.com and the ability for New Yorkers to form legal entities on their own, with no legal fees.

For more information New Yorkers can visit http://www.thenewyorkcorp.com or call The New York Company at 877-303-CORP (2677), Monday-Friday, 9 a.m.-8 p.m. Eastern time. Live Chat is available on the Website Monday-Friday, 11 a.m.-6 p.m. Eastern time.

About The New York Company

The New York Company (www.thenewyorkcorp.com) focuses on doing one thing and one thing only: forming New York limited liability companies (LLCs) and corporations efficiently. We assist entrepreneurs, attorneys, and accountants in providing asset protection, and reducing tax liability nationwide by forming entities that provide limited liability protection.

Contact Information

  • Contact:
    Troy Janisch
    Director of Marketing
    The New York Company
    608-576-7533