Limited Liability Organizations

The Limited Liability Company Law (Chapter 34 of the Consolidated Laws) permits the creation of a Limited Liability Company (LLC) and the registration of a Limited Liability Partnership (LLP).   The primary advantage of these entities is that the members or partners cannot be held individually liable for the debts of the LLC or LLP.  Depending on the circumstances, a Limited Liability Company may be taxed for Federal income tax purposes as a sole proprietorship, a partnership or a corporation. You may wish to consult your financial advisor regarding the advantages or disadvantages of forming an LLC or LLP.

LLCs and LLPs are treated as separate entities for unemployment insurance tax liability purposes. If you change your current form of doing business to an LLC or an LLP, you should notify us promptly.  We will establish a new account and transfer your experience for tax rating purposes.

Partners in an LLP or members of an LLC are not considered employees, and unemployment taxes are not paid on their earnings. However, managers of an LLC who are not members may be employees.

If you have questions about the unemployment insurance tax liability of these entities, contact our Liability & Determination Section at (518)457-5807 or (518)457-5806.