Call Us Today for a Free Consultation: 516.569.3030
Corporate Law
The law firm has covered many cases in corporate law, including mergers and acquisitions, but primarily focuses on the formations of Corporations.
Formations of Corporations
Frequently Asked Questions:
Q: LLC or INC. or Sole Proprietorship, what is best for me?
A: Best to ask your accountant whether it is better to use an LLC or an Inc. The filing fees for an INC. is around $450 in New York, while an LLC costs more like $1000. Both LLC and INC. will give you protection from creditors.
A: Best to ask your accountant whether it is better to use an LLC or an Inc. The filing fees for an INC. is around $450 in New York, while an LLC costs more like $1000. Both LLC and INC. will give you protection from creditors.
Q: Can I lose Protection from Creditors?
A: Even if you conduct your business through an LLC or an INC you cannot use it as a personal piggy bank. You CANNOT pay church or synagogue dues or your kids’ tuition with you LLC. You need to give yourself a salary and only use LLC money for business related matters. If not a creditor can pierce the corporate veil and go after you through your company vice versa to you through your company. So watch out.
A: Even if you conduct your business through an LLC or an INC you cannot use it as a personal piggy bank. You CANNOT pay church or synagogue dues or your kids’ tuition with you LLC. You need to give yourself a salary and only use LLC money for business related matters. If not a creditor can pierce the corporate veil and go after you through your company vice versa to you through your company. So watch out.
Q: If I am a minority owner how can I be protected?
A: You must have an iron clad operating agreement or shareholders’ agreement otherwise the majority stockholder can fire you kick you out of the office and change the locks and not give you a key. A good operating agreement can balance out this inequity. You may want an employment agreement to boot. You want to make sure you have complete access to the company’s bank accounts and tax records.
A: You must have an iron clad operating agreement or shareholders’ agreement otherwise the majority stockholder can fire you kick you out of the office and change the locks and not give you a key. A good operating agreement can balance out this inequity. You may want an employment agreement to boot. You want to make sure you have complete access to the company’s bank accounts and tax records.
For a free sample form of an operating agreement for an LLC or a shareholders agreement for a corporation. Please email us and we will send you one.