Overview
Getting an LLC in New York involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.
How To Get An LLC In New York: Step-By-Step
- Choose a Name for Your LLC:
- Choose a unique and available name for your LLC.
- Perform a New York LLC name search through the New York Secretary of State website.
- Reserve your chosen name if needed.
- Registered Agent:
- Appoint a registered agent with a physical address in New York.
- File Articles of Organization:
- Complete the New York LLC Articles of Organization form.
- File by mail or online through the New York Secretary of State website.
- Announce Your LLC:
- If you’ve formed an LLC in New York, you must publicly announce the formation within 120 days after the organization.
- Operating Agreement:
- Draft an operating agreement outlining the structure and operation of your LLC. In New York, it is required.
- Employer Identification Number (EIN):
- Obtain an EIN from the IRS for tax purposes.
- File the Beneficial Ownership Information Report:
- Beginning in 2024, many New York LLCs must submit a Beneficial Ownership Information (BOI) Report.
1. Choose A Name For Your LLC
Check if the name you desire for your New York LLC is available in the state. This is important because no two businesses in New York can share the same name.
To do this, use the New York Secretary of State website Entity Search tool to compare your business name with existing ones in New York.
Make sure your LLC name is unique by following New York’s naming rules to increase the chances of your LLC name being approved.
If you need, you can reserve the name for your LLC for up to 60 days. The cost is $20.
2. Appoint Registered Agent
A Registered Agent is the person or company allowed to get legal papers and important notices on behalf of your LLC.
In New York, the Department of State is automatically your LLC’s registered agent. They receive legal mail for your business.
However, some LLCs prefer having a second registered agent for faster mail forwarding. If you choose this, you need your second agent’s name and address before filling out your Articles of Organization.
Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.
The registered agent has to meet some requirements:
- If it is a company, it must offer registered agent services.
- The agent must have an address in New York.
- The agent must be there in person and ready to get documents during regular business hours.
3. File New York LLC Articles Of Organization
To officially establish your New York LLC, you need to file the New York LLC Articles of Organization.
This document provides essential details about your LLC and serves as the official registration.
To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, specify the type of your LLC business, and provide the effective date if different from the filing date.
The form is a straightforward online submission or can be sent by mail.
The New York LLC Articles of Organization filing fee is $200.
Once filed, the New York Secretary of State will review the document, and upon approval, your LLC attains legal business entity status.
You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.
>> Form your LLC with Bizee for $0 (plus state fee) <<4. Announce Your LLC
After submitting your LLC’s Articles of Organization, you have 120 days to fulfill the New York publication requirement.
This involves publishing a legal notice in two newspapers (one weekly and one daily) for six consecutive weeks in the county where your main business address is. Once completed, the newspapers will send you an Affidavit of Publication as proof.
Send this Affidavit, along with a Certificate of Publication and a $50 filing fee, to the New York Department of State.
5. Create An Operating Agreement
An operating agreement is a document that shows how your LLC will do business.
New York does make it a must, so having one is crucial. Plus, it helps in different ways, like resolving money disputes or potential legal issues.
New York LLCs must adopt it within 90 days of formation.
The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the Articles of Organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.
6. Obtain Employer Identification Number (EIN)
The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.
This number helps you:
- File and handle taxes at both the state and federal levels.
- Open a bank account for your business.
- Apply for permits and licenses.
- Hire employees.
Obtaining an EIN is FREE.
7. File The Beneficial Ownership Information Report
Starting in 2024, many New York LLCs must now file an extra document at the federal level, known as the Beneficial Ownership Information (BOI) Report, to the Financial Crimes Enforcement Network (FinCEN).
This report mandates disclosing information about your company applicant and all beneficial owners to FinCEN. You can submit it online using the Beneficial Ownership Information E-filing System or opt for a professional service to handle it for you.
Review: What Is Needed To Form An LLC In New York?
To form an LLC in New York, you need:
- A unique LLC name.
- Articles of Organization.
- Registered Agent information.
- Operating Agreement.
- Employer Identification Number (EIN).
What Forms Do You Need To Get An LLC In New York?
- Application to Reserve LLC Name
- Articles of Organization (online)
- Articles of Organization (PDF)
- EIN Application Form
- BOI Form
How Much Does It Cost To Start An LLC In New York?
The cost to start an LLC in New York involves several steps, each with its own associated fees:
- Articles of Organization Filing Fee: $200
- Name Reservation Fee (if needed): $20
- Newspaper announcement: up to $1,000
- Affidavit of Publication: $50
- Biennial report Fee: $9
What Is The New York LLC Biennial Report?
New York LLCs need to submit a yearly report known as the Biennial Report to the state. This report ensures the government has current contact details for your business and is informed about any changes in ownership.
It is due on the last day of the month your LLC was formed every other year, starting two years after formation.
The biennial report is $9 in New York, but you also have to pay an annual filing fee (read below).
What Is The New York Annual Filing Fee?
The New York Annual Filing Fee for LLCs is determined based on the LLC’s gross income.
The fee ranges from $25 for LLCs with gross income $100,000 or less to $4,500 for those with an income exceeding $25,000,000. LLCs in New York, with default tax classification, are taxed as pass-through entities.
There is an annual filing fee requirement for certain partnerships, LLCs, and LLPs using Form IT-204-LL. The filing fee amount is based on the New York source gross income from the preceding tax year.
The form must be filed by the 15th day of the third month following the close of the tax year.
How Long Does It Take For An LLC To Get Approved In New York?
When you send your LLC application by mail, it will be approved in a month or more, plus the time it takes for the mail and the publication fulfillment (6 weeks).
However, if you file online, your LLC can be approved in 1-2 business days.
What Are The Benefits Of Getting An LLC In New York?
- Limited liability protection for members
- Pass-through taxation
- Flexible management structure
- Credibility for business transactions
Is New York A Good State To Get An LLC?
Whether New York is the right state for your LLC depends on where you live and do business. If you live or operate in New York, it makes sense to start your LLC there.
Getting An LLC In New York: Next Steps
Once your LLC is registered, you can:
- Get the permits and licenses you need for your business, like health or zoning permits.
- Register your business with the state’s tax agency.
- Open a business bank account.
- Apply for a business credit card.
- Buy insurance for your business.
- Safeguard your name and logo with a trademark.
To maintain your LLC in New York, you must:
- File the Biennial Reports to keep the LLC in good standing.
- Update any changes to the registered agent or business address promptly.
- Register with the NY Department of Taxation and Finance.
- Pay the Annual filing fee.
- Pay Taxes (owners file their individual tax returns).
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Conclusion
Forming an LLC in New York involves a few key steps, from name reservation to obtaining an EIN.
Carefully following the process ensures a smooth establishment of your LLC.
For more detailed information and to access the necessary forms, visit the New York Department of State website.
