How much does an LLC cost in New York? (details)

Forming a New York LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.

We outline all up-front and continuing costs for a New York LLC and advise how to successfully cut these out of the budget.

How Much Does It Cost to Start an LLC in New York?

There is a $200 filing fee for the Articles of Organization with the Secretary of State when forming an LLC in New York.

This is important in creating your LLC's legal standing, allowing it to function under New York regulations if approved.

Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a New York LLC (Limited Liability Company).

Costs of Forming a New York LLC

Forming an LLC includes a one-time state filing fee of $200.

There are also ongoing fees (like a $9 Biennial Report fee), which we discuss below.

LLC Costs in New York

The filing fee for a New York LLC Articles of Organization is $200

In New York, forming an LLC requires paying the Secretary of State a $200 filing fee for the Articles of Organization. This paper creates your LLC legally if it is accepted.

After formation, you only need to pay the $200 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your New York LLC active.

The form used to establish an LLC can vary by state; it may be called the Articles of Organization.

In New York, it is specifically known as the Articles of Organization. Despite these variations in naming, they all serve the same purpose to create your LLC legally.

New York LLC publishing cost (varies)

New York requires you to publish two notices or advertisements in the newspaper when you file your Articles of Organization. You must publish an ad in one weekly newspaper and another ad in one daily newspaper. Both ads must run for six consecutive weeks.

The cost of publishing each ad varies because newspapers establish their fees. Typically, the cost ranges from $300 to $1,200, depending on the newspapers you select.

New York LLC Certificate of Publication filing ($50)

After your notice has run for six weeks in both the daily and weekly newspapers, you must file the Certificate of Publication with the Department of State. The filing fee is $50.

Each newspaper where you published the LLC notice will provide you with an Affidavit of Publication and a copy of your ad. You’ll send the Affidavits, copies of the ads, and the Certificate of Publication to the Secretary of State along with the $50 filing fee.

Reserving a business name in New York entails a fee of $0

The creation of your New York LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.

Remember to include the Name Reservation with your application if you want to file by mail.

But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.

How much does a DBA cost? ($25)

In New York, a DBA is filed with the town clerk rather than the Secretary of State. Therefore, the cost of a DBA will vary depending on the town where your LLC is doing business.

New York Registered Agent Fee ($0 to $125/ annually)

Under New York law, every LLC formation requires the appointment of a Registered Agent.

Your New York Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.

You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.

Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.

Hiring a Registered Agent service is a good idea if:

• You lack a physical address in the state (New York law mandates Registered Agents to have an address within the state).
• You prefer to keep your address private (some companies allow you to use their address for confidentiality).

LLC Operating Agreement Fee ($0)

A New York LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.

Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.

Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.

LLC EIN Number Fee ($0)

An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.

While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.

New York LLC Biennial Report Fee ($9 every 2 years)

New York requires you to keep your LLC’s information up to date by filing a Biennial Report (also known as a Biennial Statement).

This keeps your New York LLC in good standing and compliance with state law so it can continue operating. You just need to confirm the information on the Biennial Statement, file it with the New York Department of State, and pay the associated cost.

The New York LLC Biennial Statement costs $9 every two years. This fee is paid biennially for the duration of your LLC’s existence.

New York Business License and Permit Fees

The locations and industry sectors in which your LLC operates in New York may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.

Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.

LLC Taxes

New York LLC owners face a range of tax obligations, leading to varying annual costs.

Some of the taxes LLC owners pay include:

• Federal taxes
• State income tax
• Local income tax
• Business taxes
• Self-employment taxes
• Sales and use tax
• Payroll tax (if you have employees)
• Property tax (if the LLC owns property)

The Taxes of Your New York LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.

Hiring an Accountant

Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in New York is a certified accountant.

While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.

New York Department of State

If you're curious about the expenses involved in starting a New York LLC, feel free to contact the New York Department of State for detailed information.

New York LLC Costs FAQs