A well-liked company form that combines the advantages of a corporation with a partnership is an LLC. It protects the owners’ personal assets and is a versatile, simple-to-manage corporate structure. An LLC, however, can be dissolved provided specific requirements are completed, just like any other corporate form.
Failure to submit yearly reports and pay fees is the most frequent reason for revoking an LLC. Every LLC must submit an annual report to the Secretary of State’s office along with the necessary payments. The LLC will be revoked if it doesn’t comply for two years in a row. The LLC will become “delinquent” and, if the situation is not fixed, it will be dissolved.
Failure to retain a registered agent is another cause for revoking an LLC. A person or business named as the LLC’s registered agent will accept legal documents on its behalf. An LLC’s registration will be cancelled if a registered agent is not kept up to date.
If an LLC disregards state laws, it may also have its LLC status removed. It may be canceled, for instance, if the LLC engages in criminal activity or transgresses state laws. An LLC may also have its status terminated if it fails to keep proper documents or convene annual meetings as required by state law.
An LLC is taxed as a pass-through entity in New York. This implies that the LLC’s gains and losses are transferred to the owners, who then report them on their individual tax returns. However, LLCs in New York are subject to a filing fee known as the LLC filing fee, which is based on the LLC’s gross income, even if the LLC itself does not pay taxes on its profits.
In New York, the procedure to create an LLC can take a few days to several weeks. The manner of filing, the level of application completion, and the workload of the Secretary of State’s office are some of the variables that affect how long it takes to incorporate an LLC. In New York, filing online, which normally takes 1-2 business days, is the quickest option to create an LLC.
A person or business chosen to accept legal documents on behalf of an LLC is known as an agent for the LLC, also known as a registered agent or statutory agent. In order to receive any legal notices, such as lawsuits or subpoenas, the agent must have a physical address in the state where the LLC is established and be accessible during regular business hours. The LLC’s formation documentation must include the agent’s contact information, which must be updated with the state if it changes.