New York City has emerged fairly strong from the global economic recession, boasting a burgeoning tech startup scene, as well as relatively low unemployment and substantial improvements in small business lending.
According to Crain's, SBA-backed loans increased by 39 percent in 2010 over the previous year, while New York's largest small business lender, JP Morgan Chase, increased its lending by as much as 222 percent during that same period.
With such conditions, it is important for New York small businesses and entrepreneurs to consider incorporating in order to protect their business assets.
Limited Liability Companies, S corporations and a host of other business entities serve to protect proprietors and shareholders from potential legal obligations, with some serving better functions than others, depending on the business type and structure.
"LLCs can have multiple classes of stock, less paperwork and can have trusts or estates or foreign entities as members," writes Howard Greenstein for Inc. magazine. "S Corporations … can only have one class of stock, shareholders are US residents or legal aliens only, they are limited to 100 members and they can't have trusts or estates as members."
While the Big Apple still faces a number of challenges in its economic recovery, small business owners should protect themselves in the meantime and form an LLC in New York City.
Tags : incorporation news, ny, small business management
Posted: Feb 22nd, 2011