One of the main reasons that New York residents avoid starting businesses even if they have a good product or service to sell is a failure to understand the legal details about how a business must be structured. Business law can be a key part of success. Failing to adhere to the law might result in many problems down the road. Lack of proper structure can even hinder a business from getting off the ground in the first place. The appropriate business form depends on the business at hand. There are many options available. One that is commonly used is a limited liability company (LLC). Before using this form, it is important to know what it is and how it can be formed.