How to Start an LLC in New York: Ultimate Guide

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A limited liability company is a legal way to structure a business.

Moreover, any business owner who seeks to limit their liability for business debts and lawsuits should consider forming an LLC.

As a new LLC business owner in New York, there are procedures and steps to setting up an LLC. 

These procedures include everything that will keep your business up and running. 

So in this article, you will learn about the ultimate guide on how to start an LLC in New York with ease. 

How To Start An LLC in New York

Here is a step-by-step guide on how to start an LLC in New York. 

Here are the most straightforward steps involved in forming your LLC in New York: 

  • Choose a Name for Your New York LLC
  • Submit an Address to Which Legal Papers Can Be Forwarded
  • File Articles of Organization
  • Prepare an Operating Agreement
  • Publication Requirements
  • Comply With Other Tax and Regulatory Requirements

Choose a Name for Your New York LLC

All LLCs in New York must contain the words “Limited Liability Company” or the abbreviations “LLC,” or “L.L.C.”

Moreover, your LLC’s name must be different from the names of other business businesses already on file with the New York Secretary of State. 

You can also check for name availability at the New York Department of State Division of Corporation’s business name database.

In addition, you can reserve a name for 60 days if you file an Application for Reservation of Name with the New York Department of State Division of Corporations. 

You can do this by mail for a filing fee of $20.

The New York Department of State stands as every LLC’s “agent for service of process.” 

As such, the Department accepts legal papers on the LLC’s behalf if it is sued, and then forwards the legal papers to your LLC. 

For this reason, you must give the Department of State the name and address where the process and other legal papers can be forwarded. 

More so, You can appoint an individual New York resident or commercial registered agent as an additional agent to receive service of process.

File Articles of Organization

All LLCs in New York are created by filling the Articles of Organization with the New York Department of State Division of Corporations

Moreover, the articles must contain:

  • The LLC’s name
  • The county in New York where it will be located
  • New York address where the Secretary of State should mail legal documents to the LLC
  • Signature the LLC’s organizer
  • Name and address of the filer of the Articles.

Furthermore, these articles may be filed by postal mail or filed online for $200. 

Prepare an Operating Agreement

LLC in New York requires members to adopt a written operating agreement. 

The Operating Agreement is the main document that ascertains the rights, powers, duties, liabilities, and obligations of the members among themselves and to the LLC. 

Also, it is purely an internal document and is not filed with the Department of State.

However, this Agreement may be entered into before, at the time of, or within 90 days after filing the Articles of Organization. 

Publication Requirements

You must publish in two newspapers a copy of the articles or a notice related to the formation of the LLC Within 120 days after the articles of the organization become effective.

Meanwhile, the newspapers must be appointed by the county clerk of the county in which the office of the LLC is located, as stated in the articles of organization. 

The printer or publisher of each newspaper has to provide you with an affidavit of publication. 

Moreover, the Certificate of Publication and the affidavits of publication of the newspapers must be submitted to the New York Department of State, Division of Corporations.

You can file for a Certificate of Publication for $50.

Comply With Other Tax and Regulatory Requirements

In the list of things to do on how to start an LLC in New York, additional tax and regulatory requirements may apply.

As such, you have to get:

EIN (Employer’s Identification Number)

You need this If your LLC has no employees, and has more than one member.

You must obtain its IRS Employer Identification Number (EIN).

If you will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). 

However, You may obtain an employer’s Identification Number by completing an online EIN application on the IRS website at no filing fee. 

Business Licenses

The State of New York may require that you either obtain a license or permit which varies depending on your business. 

Also, you may need a local business license from your municipality. 

Annual State Filing Fee

All LLCs in New York both domestic or foreign LLCs that are treated as a partnership or disregarded entity for federal income tax purposes that have any income, gain, loss, or deductions derived from New York sources must file an annual fee. 

However, An LLC that is treated as a corporation for federal income tax purposes is not subject to the filing fee. 

This filing fee is paid to the Department of Taxation and Finance (often just called the Tax Department) using Form IT-204-LL, Partnership, Limited Liability Company, and Limited Liability Partnership Filing Fee Payment Form.

You can do this at a fee ranging from $25 to $4,500 depending on the LLC’s income. 

Conclusion

To start an LLC in New York, you need to New York: Choose a Name for Your New York LLC, Submit an Address to Which Legal Papers Can Be Forwarded.

Also, you have to File Articles of Organization and Prepare an Operating Agreement.

Then ensure to do the Publication Requirements and Comply With Other Tax and Regulatory Requirements.

However, if you find these processes daunting, you can choose to seek professional services at a cost. 

We hope you find the article on how to start an LLC in New York advantageous.

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