Legal Question in Business Law in New York

Re: Non tax non formalities difference between Corp and LLC

There are a number of reasons why you may want to select one entity over another. There is certainly a difference between a C-corp and a LLC when it comes to tax issues. A C-corporation will be taxed twice where an LLC will be taxed once. Furthermore, there are certain restrictions on whether you can make an S election on a corporation. Also in New York state there is a publication requirement for Limited Liability Companies. The requirement to publish in the newspapers a legal notice of formation can run hundreds of dollars and in New York county it can be upwards of $1500 and possibly higher. Corporations do not have the same publication requirement. However, depending on your goals a limited liability company may be much better. It is easier to manage in the long run from a legal standpoint and there are other potential benefits depending on your goals. You should speak with a qualified attorney to see what your options are and to determine which entity may be the best for your particular situation. Please feel free to contact my office if we can be of any assistance.