The state of New York, which is home to New York City, is a popular location for forming a limited liability company (LLC). With roughly 20 million residents, including over 8 million in New York City, there are plenty of customers to serve. Filing the proper paperwork to become an LLC in New York can feel daunting, but we’re here to help make it as easy as possible.
Why Is It Worth It to Form an LLC in New York?
If you reside in New York or plan to relocate there, it makes sense to establish a business there. When it pertains to business structures, LLCs have advantages.
Furthermore, an LLC allows you to operate with greater flexibility and independence than a corporation would.
Many various sorts of LLCs can be successful in New York. For example, New York City is teeming with working parents in need of childcare. Trying to form an LLC and running a high-quality, licensed facility can fill a significant demand in the city if you’re a childcare professional.
Because of its proximity to Niagara Falls, Buffalo is an ideal location for tourist-oriented businesses. Consider the following: gift shops, bakeries, and specialty restaurants.
Rochester, with a population of over 200,000 people and a flurry of industrial, university, and healthcare careers, could be an ideal location for LLCs that offer spa, massage therapy, and wellness services to tired workers and students. If you’re a medical professional starting a private practice, your LLC can serve people all over the state.
The procedure for creating a state-approved LLC is the same regardless of where you are in New York State. Following each step and properly filing the paperwork provides a solid foundation for whatever business you choose to operate.
The Investment Required to Get An Llc Ny
Aside from the overhead and direct costs you must plan for when starting your business, it is critical to consider how much time and money you will need to invest when forming an LLC in New York.
Filing all of the necessary paperwork can take a long time because you’ll need to read the fine print and avoid mistakes, which can cost you more time and money later on.
In addition to the cost of filing paperwork, you’ll need to factor in fees for expedited filing, fees for the New York Publication Requirement—more on that later—attorney fees if you choose to have one assist you with filing, registered agent fees, and so on.
We’ll go over the specifics below, but know that you’ll need at least $500 to get started, and even more if you’re starting a business in New York City, where newspaper ad fees to meet the New York Publication Requirement can be significantly higher than the rest of the state.
If you require additional assistance in areas such as taxes and finance, or if you want a professional to go over all of your paperwork with you, you must also consider attorney, financial advisor, and certified public accountant fees.
You can also use an LLC formation tool to ensure that everything is completed correctly. Windsor Corporate, our top-recommended LLC service, makes the process much easier.
Six Steps to Forming an LLC in New York
Are you ready to form your New York State LLC? Here are the six steps you must take to complete the task.
#1 – Select a Business Name
Make that the company name complies with New York State LLC laws before ordering signage or creating a website for it.
According to New York law, your company’s name must:
- Be distinct from any other LLCs, limited partnerships, or corporations currently registered with the New York state. Search the Dept of State’s name database to see if your name is available.
- Incorporate the letters LLC, L.L.C., or Limited Liability Company into the name—for example, New Yorkie Dog Shop, LLC.
- Use any of the forbidden words as defined by New York State law. To name a few, restricted words for LLCs include arboretum, fidelity, museum, school, and United Nations.
- Ascertain that a domain name that corresponds to your company’s name is obtainable for use. If you intend to use the name NYC Dog Shop, LLC, make absolutely sure that the domain name nycdogshop.com—or something similar—is not already in use.
#2 – Choose a Registered Agent
A registered agent is a business or an individual who gathers legal documents on your LLC’s behalf. This can help you avoid uncomfortable events in your physical location, such as when someone comes to serve you with an eviction notice because you haven’t paid your rent.
Your registered agent will receive the eviction notice and forward it to you privately, allowing you to process the information and plan your next steps without disrupting day-to-day operations.
But we hope this does not occur to you! A registered agent also keeps track of New York State’s biennial report requirements and other important dates that must be met if your LLC is to remain in good standing.
On your Articles of Organization, which we’ll go over in the next step, you must name the New York Secretary of State as your registered agent. If you want, you can also add another registered agent. Windsor Corporate Services provides registered agent services that include the following:
- Receive critical legal documents on your LLC’s behalf.
- Maintain your company’s compliance with New York State law.
- Make it simple for you to view, print, and save critical documents.
#3 – Submit the Articles of Organization to the State of New York.
Filing your New York State Articles of Organization is a thrilling step because it signifies that your LLC is now officially formed. If there are no errors on your paperwork or issues with your business name, you will receive paperwork to get An Llc Ny once the state has processed it.
If you live in New York and intend to do business there, filing the Articles of Organization costs $200. You must file an Application of Authority if you are an out-of-state entity doing business in New York.
#4 Create an Operating Agreement
All LLCs must adopt a composed Operating Agreement in under 90 days of filing the Articles of Organization or Application for Authority under New York State Law. This document should establish the LLC members’ duties, rights, powers, obligations, and liabilities—or member, if you’re the only one.
#5 – Run Two Consecutive Newspaper Announcements
You must publish a copy of your Articles of Organization/Application of Authority, or a formal notice about the formation of your LLC, in two newspapers at the same time for six weeks within 120 days of filing your Articles of Organization/Application of Authority. The county clerk in the county in which you operate your business will tell you which newspapers are permitted for this purpose.
6 – Obtain an Employer Identification Number (EIN).
If you have employees or more than one member in a New York LLC, you must obtain an Employer Identification Number (EIN) in order to file taxes. The Internal Revenue Service makes it simple to apply online (IRS).
To Get An Llc Ny State requires money, but the steps outlined above will get you there. Once you’ve completed the steps, you’ll only have to file a biennial report each year for $9—and, of course, focus on growing your actual business.