What type of LLC do I need to create? NY

I am currently in the process of opening a small business. There is no store front, just a single room.production and distribution site. I understand that there is different types of LLC’s Domestic, Foreign, etc. and they all have different price ranges. What kind of LLC am I required to open?

Asked on April 8, 2016 under Business Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

A foreign LLC is simply one created in a different jurisdiction (e.g. different state or country). A domestic one is one created in the state you are operating in. The cost differences between creating an LLC here or there tend to be trivial. For simplicity's sake, while getting both the best tax treatment for a small business with a sole owner or small number of partners, simply create and register a NY LLC where you elect "partnership" or "pass" tax treatment (not corporate treatment): that will avoid double taxation, and any profit or loss will simply drop your personal bottom line and alter adusted gross income for tax purposes.


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