Many business people opt for limited liability entities in order to protect themselves from being litigated, thus preserving their assets.

Limited liability companies (LLCs) are organizations (not incorporated) of one or multiple members with each member limited for liability in the event of a suit or other legal process against the organization or company. LLCs are formed for any lawful business purpose under the LLC law of the State of New York or any other authorizing organization.

Similar to liability protections found in corporations, the assets of owners of LLCs are protected, meaning that debt holders will go after company assets, not the owner’s personal assets. In New York, an LLC is formed after organizers (one or more) of an entity sign and file articles of organization which state:

• The name of the limited liability company
• The location of the LLC (New York county)
• Date of dissolution of the LLC, if not meant to be ongoing
• The name of the designated agent of the company (designation from the New York Secretary of State) should the LLC be served any legal process, and the postal addresses of both the registered agent in New York state and other parties (in or out of New York state) that copies of any legal process should be mailed to in the event of a legal process against the LLC
• Statements of liabilities, should any member or group of members be personally liable for all or a portion of liabilities, debts, or other obligations as the result of legal processes against the LLC
• Any other provisions, as long as it is not inconsistent with law, that the members agree to include in the articles or organization

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