A New York LLC is a hybrid entity that does not pay any federal income taxes while providing limited liability protection for all its members. For federal tax purposes an LLC is a pass-through entity: its income, profits and losses are taxed only at the ownership level. Whilst not 'offshore', New York is still attractive to non-resident investors. An LLC may have an unlimited number of members or as few as one. Its membership interests may be held by corporations, partnerships, non-resident aliens, trusts, pension funds or charitable organisations. An Operating Agreement is mandatory. It is entered into by the LLC and its owners to define their duties and responsibilities to each other.

• No filing of accounts
• Good for American trading structures
• Incorporation is a lengthy process. New LLCs are required to publish a notice of formation for six consecutive weeks in a local newspaper
• No personal liability of members
• Name must be unique
• Meetings not required