LLC is an abbreviation for Limited Liability Company. It is a straightforward business structure that provides more flexibility than a traditional corporation while still providing many advantages. A limited liability company (LLC) is one of several business structures, including a sole proprietorship, partnership, and corporation.
To form an LLC in New York, you must file your Articles of Organization with the New York Department of State Division of Corporation for a fee of $200. You can apply both online and by mail. The Articles of Organization are the legally binding documents that establish your New York Limited Liability Company.
Follow the step-by-step guide below to form a New York LLC and get your business up and running.
STEP 1: Give Your New York LLC a Name
The first and most important step in forming an LLC in New York is deciding on a name. Ensure that the name you choose complies with New York naming requirements and is easily searchable by potential clients.
Adhere to the New York LLC naming conventions:
- The phrase “limited liability company” or one of its abbreviations must appear in your name (LLC or LLC). Your LLC’s name cannot contain words that could be confused with a government agency (FBI, Treasury, State Department, etc.). Restricted words (e.g., bank, attorney, university) may necessitate additional paperwork and the participation of a licensed individual, such as a doctor or lawyer, in your LLC. Your name must be distinguishable from any other New York limited liability company, limited partnership, or corporation.
It would help if you also took these questions into consideration:
- Does the name exist in New York?: Check the State database to ensure that the name isn’t already taken.
- Is the URL accessible?: We recommend checking online to see if your company name is available as a web domain. Even if you don’t intend to create a business website right away, you may want to purchase the URL to prevent others from acquiring it.
STEP 2: Select a New York Registered Agent
You can, however, choose your legal business advisor other than the Secretary of State to provide you with the registered agent for your New York LLC. Even if you use a registered agent service, The Secretary of State will send the following to the principal address of your LLC or the address of your designated registered agent:
- All documents about the formation
- Any process information service
- Taxation and reporting documentation
STEP 3: File the Articles of Organization for your New York LLC
You must file articles of Organization with the New York Department of State to register your New York LLC. You can submit your application online, by mail, fax, or in person.
STEP 4: Comply with the New York LLC Publication Requirements
Publication requirement for an LLC in New York:
LLCs must publish a notice of LLC formation in two newspapers (one weekly and one daily) for six consecutive weeks in the county of the LLC’s principal office or designated registered agent’s office within 120 days of formation.
Brief Answers to the most asked questions are as follows:
- Can I choose any newspaper I want?
No. The local county clerk of the county you designate in your Articles of Organization must approve the newspapers. Following publication, each newspaper’s printer or publisher will provide you with an affidavit of publication.
- Where should I submit my Certificate of Publication?
Your Certificate of Publication, along with your affidavits of publication, must be submitted to the New York Department of State, Division of Corporations
STEP 5: Draft an Operating Agreement for a New York LLC.
An operating agreement is required for all New York LLCs. This should be written agreement.
Let’s understand about the operating agreement:
An operating agreement is a legal document that outlines an LLC’s ownership and operating procedures.
The significance of operating agreements:
A detailed operating agreement ensures that all business owners are on the same page and reduces the likelihood of future conflict.
STEP 6: Obtain an EIN from the State of New York for your New York LLC
EIN Introduction:
Employer Identification Number (EIN) is an abbreviation for Employer Identification Number. EINs are nine-digit numbers assigned by the Internal Revenue Service (IRS) to businesses to help them be identified for tax purposes. It is essentially a business’s equivalent of a Social Security number. An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I require an EIN?
An EIN is required to:
- Establish a business bank account
- Filing and managing federal and state income taxes
- Employ people
Where can I obtain an EIN?
The IRS will issue you an EIN for free. Obtaining an EIN is a simple process that you can complete online EIN application or by mail.
We hope that we can help you give a brief description and precise step-by-step information on how to start an LLC in New York. Furthermore, if you are in search of a legal advisor or someone to provide you with business consulting services, you are at the right place. Our dedicated team of experts will always be there for you and help you walk through the journey more efficiently.
