— The Limited Liability Company —
A limited liability company operates more like a corporation than a partnership. Like a corporate entity, an LLC’s “members” are shielded from personal liability. A limited liability company is required to file Articles of Organization with the New York Department of State. An LLC has flexible tax rules for its members. For federal tax purposes, it can elect its own classification. An LLC with two or more members can elect to be treated like a corporation or a partnership. An LLC with only one member can elect to be treated like a corporation or as a sole proprietorship.