How to Start LLC in New York Step-by-Step Guide
Starting a New York LLC, step-by-step
Here are the steps to forming an LLC in New York:
- Choose an LLC Name
- Select the county where your newspaper advertisements will be published
- Select a Registered Agent (optional)
- File the Articles of Organization
- Create an Operating Agreement
- Publish your newspaper ads
- File a Certificate of Publication
- File a Certificate of Change (optional)
If you want to form your LLC yourself, follow our comprehensive guide below at no cost.
For further details on LLC expenses, Explore the specifics of LLC costs in New York.
Check out "How Long Does It Take to Form an LLC in New York" to see if there are any delays in the approval process for your LLC.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
Here are the steps to forming an LLC in New York
1. Search for your Limited Liability Company (LLC) Name
Take these actions to make sure your New York LLC name is available and complies with state laws.
First, search your business name. Entity Search tool to ensure it's unique and not already in use.
This is necessary because two businesses in the state cannot share the same name.
Second, check domain availability for an online presence Select a name that is memorable to the customer and best suited for the brand.
We'll explore the specifics of naming an LLC in New York in greater detail.
How much does it cost to start an LLC in New York?
Starting an LLC in New York involves an initial cost of $200, and newspaper publication costs between $300 and $1,200.
Additionally, then it costs $9 every 2 years.
How do I check if my desired LLC name is available?
You can check the availability of your desired LLC name by searching the New York Department of State (Division of Corporations).
What are the naming requirements for the New York LLC?
The name must include "Limited Liability Company," "LLC," or "L.L.C." It must be distinguishable from other business names registered in New York and should not contain restricted words without approval.
Can I reserve a name for my LLC?
You can reserve a name for up to 120 days by filing a Name Reservation application with a $20 cost.
2. Choose how you’ll approach the LLC Publication Requirement
In New York, LLCs are required to publish advertisements in two newspapers after formation.
This LLC Publication Requirement serves to notify the public about the establishment of your business.
New York law, however somewhat archaic, requires newly formed LLCs to place advertisements for six weeks in two newspapers. It is required that one of these newspapers be distributed every day and the other to be distributed once a week.
How much do newspaper ads cost to place?
The cost of placing newspaper ads varies by county where your LLC is located.
In certain counties, prices range from $200 to $300.
In more densely populated areas like the 5 boroughs, costs can range from $800 to $1,200. The cost of placing newspaper ads varies by the county where your LLC is located.
How do I determine how much money I might save?
To gauge potential savings, get in touch with your county clerk to obtain contact information for two newspapers—one daily and one weekly. Contact each newspaper directly to request cost estimates.
Compare these quotes with the details provided in the Savings Breakdown Table. This approach will assist you in deciding whether its more cost-effective to publish in a budget-friendly county such as Albany or your business's local county.
3. Find a Registered Agent in New York
The next step is to select the New York Registered Agent.
Your LLC may designate a person or organization to serve as its registered agent in New York to receive official notices and legal correspondence on its behalf. They need to have a physical address within the state to perform this duty effectively.
Exclusive Offer!
Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
Who is eligible to serve as an LLC Registered Agent?
Your LLC's registered agent can be you.
- A trusted friend or family member
- A professional Registered Agent Service
- You
They must have a physical address in New York, as PO Boxes are not acceptable.
The Registered Agent's details are available to the public in state records.
If you prioritize privacy or lack a physical New York address, a Registered Agent Service could be beneficial.
What is a Registered Agent?
A Registered Agent is a person or entity designated to receive legal documents and official government communications on behalf of the LLC.
Who can be a Registered Agent in New York?
The Registered Agent can be an individual resident of New York or a business entity authorized to do business in New York. The agent must have a physical street address in New York (no P.O. boxes).
Can I act as my Registered Agent?
Yes, if you meet the residency and physical address requirements, you can act as your Registered Agent.
4. File the New York LLC Articles of Organization
Prepare and submit the Articles of Organization to the New York Secretary of State.
To establish an LLC in New York, you must submit a Public Records Filing for a New Business Entity.
Filing the Public Records Filing online costs $200, which is a one-time fee to form your LLC.
If you want to file this yourself, see our step-by-step guide: ?.
How do I file the Articles of Organization?
You can file the Articles of Organization online or by mail with the New York Secretary of State, Business and Professional Licensing. The filing fee is $200.
What information is required in the Articles of Organization?
The Articles of Organization must include the LLC’s name, principal office address, registered agent information, and the names and addresses of the organizers.
How long does it take to process the Articles of Organization?
Processing times can vary. Online filings are typically processed within a few business days, while mail filings may take longer.
5. Create the New York LLC Operating Agreement
A New York LLC Operating Agreement is like a companion document to an Articles of Organization. The articles create your LLC, while the Operating Agreement explains who owns it.
Banks may require it to open your LLC business bank account, and it is important in court to prove your LLC is running correctly.
That's why we recommend that all LLCs, including Single-Member LLCs, have an Operating Agreement.
Operating Agreement is essential in legal proceedings because it serves as evidence that your LLC operates by proper governance practices, bolstering your defense in court.
An Operating Agreement is an internal document, so you don’t need to file it with the IRS. Just keep a copy in your business records for your reference.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
What is an Operating Agreement?
An Operating Agreement is a document that outlines the ownership, management structure, and operating procedures of the LLC.
Is an Operating Agreement required in New York?
While not legally required, it is highly recommended to have an Operating Agreement to establish clear rules and prevent disputes.
What should be included in an Operating Agreement?
The Operating Agreement should include details on member roles and responsibilities, voting rights, profit distribution, management structure, and procedures for adding or removing members
6. Get an EIN for LLC
Getting a New York EIN from the IRS for LLC.
An EIN (Employer Identification Number) is needed for:
- Identifying tax purposes
- Open the business bank accounts
- Apply for licenses and permits
How do I apply for an EIN?
You can apply for an EIN online through the IRS, by mail, or by fax.
How much does an EIN cost?
Obtaining an EIN from the IRS comes at no cost. The application process is free.
How much time does it take to receive an EIN?
When applying online, you will receive your EIN immediately.
If you choose to apply by mail or fax, it can take four weeks.
Why do I need an EIN for my LLC?
An EIN is required for federal tax purposes, hiring employees, opening a business bank account, and fulfilling other business-related requirements.
How can I obtain an EIN?
For US Citizens or Residents: If you possess an SSN or ITIN, you are eligible to apply for an EIN online. Follow these steps and apply for an EIN online.
For Non-US Residents: You are unable to obtain an EIN online, but you can still acquire one through fax or mail. Follow these steps to get an EIN without an SSN or ITIN.
7. Publish your newspaper ads
You can start running your ads in two newspapers as soon as your articles of organization are accepted.
Here's what you'll need to get started:
- Date your Articles of Organization were filed (find this under Date of initial DOS filing in the Business Entity Database).
- Contact information for two newspapers.
- A template for your newspaper ad.
After your ads have run for 6 weeks:
- Each newspaper will send you an Affidavit of Publication along with a newspaper snippet (a photocopy of the ad). These documents serve as proof that the advertisements were published.
- You will include these two Affidavits of Publication when filing your Certificate of Publication, which we will discuss further below.
8. File a Certificate of Publication
Filing a Certificate of Publication demonstrates to the state that you have fulfilled the publication requirements.
(Ensure you have obtained the 2 Affidavits of Publication from the newspapers.)
The Certificate of Publication must be submitted by mail as online filing is not available.
There is a $50 filing fee associated with the Certificate of Publication.
9. File a Certificate of Change
If you publish your advertisements in a different county and need to revert your address, you will need to submit a Certificate of Change.
The filing fee for this form is $30.
Ensure that you have already filed your Certificate of Publication and received your Filing Receipt (proof of filing) before submitting a Certificate of Change.
What Should I Do after the LLC is Approved?
Business bank account for New York LLC
Opening a business bank account for your New York LLC is essential to separate personal and business finances. This separation helps maintain accurate financial records, simplifies tax filing, and protects your assets in case of legal issues.
New York Licenses and Permits
New York LLCs may require various licenses and permits depending on their location, industry, and business activities.
Taxes for New York LLC
New York LLCs are subject to several taxes, including federal and state income taxes, sales taxes (if applicable), and payroll taxes if the LLC has employees. Understanding and complying with these tax obligations is crucial to avoiding penalties and maintaining good standing with tax authorities.
Annual Report Requirement
New York LLCs must file an Annual Report each year to the New York Secretary of State. This report updates the state with any changes to the LLC's business details and requires filing fee payment. Keeping this report current ensures that your LLC remains in good standing and compliant with state regulations.
Read more
Arkansas LLC Operating Agreement
Exclusive Offer! Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service. (Why is Northwest the best? Read our Northwest Registered Agent review)
Arizona LLC Operating Agreement
Exclusive Offer! Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service. (Why is Northwest the best? Read our Northwest Registered Agent review)
Alaska LLC Operating Agreement
Every Alaska LLC should have an Operating Agreement; obtaining one doesn't have to be costly. You can use our free template to download and customize your Operating Agreement. Alaska LLC Operating Agreement (Member-managed) Here is a template for a Member-managed Operating Agreement that is available. This can be
Recommended States for LLC Formation
Exclusive Offer! Hire a Northwest Registered Agent to form your LLC for just $39 plus the state fee and receive a free year of Registered Agent service. (Why is Northwest the best? Read our Northwest Registered Agent review)