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ella_guru
02-27-2014, 04:06 PM
Hello,

This is my first post here, and this is completely new territory for me. Briefly, my background is in manufacturing and engineering and I would like to begin the process of manufacturing and selling my own product. The nature of these products would be electronic items that would interface with computers and other devices.

I foresee this as being, very small scale and tight initially, all work would be carried out by myself;
There would be no payroll, office space etc.. just the cost of buying materials and the income from selling on the final product.
As an FYI, I am based in New York City.

Can anybody here direct me to the most suitable option for company formation (LLC etc...) ? I am seeking something with the simplest possible administration and the most flexibility for future growth (of course :).

keithwkoch
05-09-2014, 11:23 AM
I would start by researching the protections/liabilities/requirements of each of the structures.
This question can be considered legal advice and any specific answer might be construed as legal advice. Which is why you aren't getting an answer.
I would get a consult with a CPA or similar professional.

Good luck with your venture

LDonahue
05-15-2014, 03:14 PM
Hi, there.

While every state has variations in their laws governing corporations and limited liability companies, I find there are very few circumstances in which someone would NOT otherwise opt for a limited liability company.

An LLC is the ONLY entity the IRS recognizes as a "disregarded entity" when the LLC is owned by one individual. This means you treat like you would a sole proprietorship for tax purposes (i.e. you don't file taxes separately for the company). Easy. Also, LLC's have the flexibility for S-Corp or C-Corp tax treatment for multi-member LLC's, depending on the advice of your CPA.

In New Mexico, LLC's don't have annual reporting requirements and they can be filed "anonymously." I don't know the specific requirements for New York, but it's easy for you to look it up.

I usually tell people: Unless you're going public, seeking venture capital funding, or have a specialized business that requires a different entity type (i.e. you're a law firm), it almost never makes sense to have something else other than an LLC. Some accountants will debate this, but it's only because they don't understand the dual-tax status capability of the LLC.

We have some blog articles you might find helpful as you consider this:

(1) General Considerations When Choosing a Business Structure. (Read the Article (http://www.l4sb.com/2013/business-law/general-considerations-choosing-business-structure/))
(2) Corporations and Limited Liability Companies. (Read the Article (http://www.l4sb.com/2014/blog/corporations-limited-liability-companies/))

I hope this helps. Good luck to you!

Larry.

mattandshana
05-22-2014, 11:40 AM
I can't wax eloquent like LDonahue (A LOT of great information, by the way) but, if it were me... I would start out as an LLC or a Sole Proprietorship just for the purposes of establishing your business as a "real" entity. Since the operation will be relatively small to begin with, anything more than that would be overkill, in my opinion. As your business grows, it is relatively painless to incorporate in the future.

It is easier, financially and practically, to establish as a sole proprietorship but, you and your business will be viewed as one and the same... there is no protection from liability in the case of possible litigation. So, that's something to consider. I found a pretty good source of information on the subject. http://www.nolo.com/legal-encycloped...s-vs-llcs.html
I hope this helps a little.

Best of Luck,

Matt

campbelljof
10-24-2015, 06:02 AM
Hey I want to little bit more about your services or your facilities, could you please explain some thing more about your self.

ceve4life
03-04-2017, 09:59 AM
Hi ella_guru , I am in the same boat; getting ready to start my own business the moment my taxes role in any day. I have talked with several customers of mine where I am currently employed, and all of them suggest using LegalZoom. You'll spend a little more and wait an extra week to get your articles of incorporation, but they say the forms help you set everything up properly in the same place. I am planning on using their services and I thought I might recommend the same for you to check out.

gilsulate
01-03-2019, 03:48 AM
This question can be considered legal advice and any specific answer might be construed as legal advice. Which is why you aren't getting an answer.

panditdesraj
05-08-2019, 01:31 PM
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panditdesraj
05-08-2019, 01:32 PM
thanks for sharing with us

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07-29-2021, 02:54 AM
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