How to Form an LLC in New York
Did you know the filing process to form an LLC varies from state to state? Each state chooses its own rules and fees. If you’re ready to start your business and learn how to form an LLC in New York, you’ve come to the right place. You’ll be on your way to getting your LLC approved in no time.
Read more to make sure you have all the necessary documents ready.
Why Form an LLC?
Limited Liability Companies, or LLCs, are among the most common forms of small businesses. The reason people choose LLCs over sole proprietorships or partnerships is that it has two major advantages.
LLCs are not taxed like corporations, or even at the entity level. Instead, members will share the profits and losses on individual tax forms. This will be taxed individually as if it were a sole proprietorship (if it’s just you) or a partnership (if there are multiple members).
The other reason is in the title: limited liability. Your personal liability for the debts and other liabilities of the company is protected in the event of a lawsuit, so you are personally protected in the event something goes wrong. It’s only the company that will be liable.
If you’ve chosen the LLC as the right fit for your company, then let’s talk about how to get started!
How to Form an LLC in New York
1. Business Name
When it comes to your business, you have to have a name picked out. This can be a tough decision, and the state will double-check that there is no other business with the same or close enough name.
Once you file, if you are afraid of losing your name, you can put a hold on the name for 30 days for $200. No one will have the chance to use your name while it is in the filing process.
2. Agent for Service
You must appoint someone as the main contact for the business. This should be someone that can handle legal troubles if they should happen. This person needs to have a mailing address in the state of New York.
3. Articles of Organization
In addition to the above documents, you will also need articles of organization. These must include the county and address in which the business will operate.
A signature of the LLC organizer is required, and the name and address of the person who prepared the articles. These documents are uploaded and filed online for a $200 fee.
4. Operating Agreement
Not all states require an operating agreement, but New York does. This agreement must be produced around the time of filing or within 90 days.
This document must outline the rights, duties, powers, liability, and obligations of the involved members.
Like a couple of other states, New York has a publication requirement that the LLC must follow. Accordingly, within 120 days from the LLC being approved, the LLC must be featured in two newspapers.
This publication must showcase a copy of the articles and a notice related to becoming an LLC in the area. In addition, these newspapers must be in the county in which the business resides.
The publisher of the newspaper must provide an affidavit saying that they did, in fact, publish your LLC information. Submit these documents to the Division of Corporations with a $50 fee. This New York LLC publication requirement is different than most states.
6. Taxes and Agreements
The new LLC must file taxes on a yearly basis. This will also include having an EIN which is unique to the business and some business licenses.
The LLC must also file an annual state filing fee. This can change based on how much income the business is receiving. The range is between $25-$4,500.
Form Your New York LLC
GoSmallBiz makes it easy to form an LLC in New York, with our Go Membership Plan! For just $199 plus state and federal filing fees, our experienced team will manage all the paperwork to set up your business’s legal entity. We’ve formed more than 1 million businesses across all 50 U.S. states over the last 20 years, so your business is in good hands.
And not only will we help you with the initial LLC formation, but your membership also includes annual report filing, stock certificates, a library of common business & legal forms, and operating agreement templates, plus a 15-minute consultation with a tax professional to discuss tax implications for your business.
Join our Go Membership Plan and form your new LLC now!