Starting an LLC in New York is easy, just follow our simple steps:
So you are starting a business in New York State? Firstly congratulations on your new business venture and decision.
You will first need to form an LLC in New York. You will need to file your Articles of Organization with the New York Department of State Division of Corporation, which costs $200.
You can apply online or by mail. The Articles of Organization is the legal document that officially creates your New York Limited Liability Company.
Below you will find our step by step guide to forming your NY State LLC
How to start your business by forming a New York State LLC – Follow the step-by-step guide below to start your New York LLC today and get your business up and running
- Select a Name Your New York LLC
Choosing a company name is the first and most important step in starting an LLC in New York.
- Get a Registered Agent in New York
In New York, the Secretary of State acts as the registered agent for all New York LLCs by default.
- File Your New York LLC Articles of Organization
To create an LLC in New York, you will need to file the Articles of Organization with the Secretary of State
- Comply With New York LLC Publication Requirements
What is the New York LLC publication requirement?
- Create Your New York LLC Operating Agreement
All New York LLCs are required to have an operating agreement. This may be a verbal or written agreement.
- New York LLC EIN – You Need One Here’s How to Get it
What is an EIN? The Employer Identification Number (EIN), Federal Employer Identification Number (FEIN)
- Post LLC Set up: Important Steps After Forming an LLC
Separate Your Personal and Business Assets, read more here
6 Steps to Your NY State LLC
STEP 1: Time to Name Your New York LLC
Choosing a company name is the first and most important step in starting an LLC in New York. Be sure to choose a name that complies with New York naming requirements and is easily searchable by potential clients.
1. Follow the New York LLC naming guidelines:
- Your name must include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
- Your name must be distinguishable from any other New York limited liability company, limited partnership, or corporation.
- Learn more about NY LLC naming guidelines on Business Enitity Search Department of State’s website.
2. Is my name available in New York? Make sure the business name you want isn’t already taken by doing a name search on the State of New York website.
3. URL available? Online is bigger than ever these days, so check and see if your business name is available as a web domain. If so you may want to buy the domain in order to prevent others from doing so.
FAQ: Naming a New York LLC
What is an LLC?
An LLC is a hybrid of a corporation and a sole proprietorship. Like a corporation, owners of an LLC will not be held personally responsible for liabilities, but the company will not live on if an owner dies or the business declares bankruptcy. Best explained in greater detail here on Wikipedia
DBA or Trade Name for my business, do I need one?
If you have filed to become a corporation or LLC, you’ve already registered your business name and you don’t need a DBA. However, you will need to get a DBA if you plan on conducting business using a name that’s different than the name filed with your LLC/corporation paperwork.
STEP 2: Get a Registered Agent in New York
In New York, the Secretary of State acts as the registered agent for all New York LLCs by default. You can, however, choose to designate someone besides the Secretary of State as the registered agent for your New York LLC.
If you choose to use a registered agent service, the Secretary of State will still be the first point of contact for the state and for anyone who might serve your LLC with legal action.
The Secretary of State will forward the following to your LLC’s principal address or the address of your designated registered agent:
- All formation documents
- Any service of process information
- Documents regarding taxation and reporting
Why would you use a Registered Agent Service in New York?
1. Reduce Publication Costs
New York requires newly formed LLCs to publish a notice of formation in local newspapers. Publication costs around $1,500 or more if the principal address is in New York City. A registered agent service located outside the city allows an LLC to use the registered agent’s address as the principal address which greatly reduces the cost of publication.
2. Maintain Privacy
New York’s LLC publication requirements mandate that your principal LLC address be publicly shared. Hiring a registered agent service will allow you to use their address instead of yours which will protect your personal privacy.
After the publishing requirements are met, you can change the location of your principal office to anywhere in New York State. You will not need to publish additional notices.
FAQ: Nominating a New York Registered Agent
Can I be my own Registered Agent in New York?
You can choose to act as your own NY Registered Agent for your New York S Corp or C Corp.
Is a registered agent service worth it?
Most small business owners will opt for a registered agent to save on paperwork, and time. Overall it’s probably worth it as you have many other things to be concerned with. Do your research but we recommend using a registered agent.
STEP 3: File the New York LLC Articles of Organization
To create an LLC in New York, you will need to file the Articles of Organization with the Secretary of State. You can apply online or by mail. Some states refer to the Articles of Organization as the Certificate of Formation or Certificate of Organization.
The New York Articles of Organization for an LLC (limited liability company) is a legal document used to officially form your business. You’ll be expected to provide the name of your LLC, the county it will be located in, the name and address of your registered agent, your starting date, the state filing fee, and the filer’s name and mailing address.
Now is a good time to consider whether your New York LLC will be member-managed or manager-managed. We recommend learning more about member-managed vs manager-managed LLCs before you file.
After filing the Articles of Organization, you must fulfill New York’s Publication Requirement, and we recommend obtaining an Employer Identification Number (EIN) if you plan on hiring employees and to open a business bank account.
FILE THE ARTICLES OF ORGANIZATION
OPTION 1: File Online with the State of New York FILE ONLINE
OPTION 2: File by Mail DOWNLOAD FORM
State Filing Cost: $200 payable to the Department of State (Nonrefundable)
Department of State Division of Corporations
State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231
STEP 4: Comply With New York LLC Publication Requirements
What is the New York LLC publication requirement? New York requires that within 120 days of formation all LLCs publish a copy of the Articles of Organization or a notice related to the formation of the LLC in two newspapers (one weekly and one daily).
Can I pick any newspapers I want? No. The newspapers must be approved by the local county clerk of the county you designate in your Articles of Organization. After publication, the printer or publisher of each newspaper will provide you with an affidavit of publication.
Where do I file my Certificate of Publication? Submit your Certificate of Publication along with your affidavits of publication to:
New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.
FILE CERTIFICATE OF PUBLICATION WITH NEW YORK
File a Certificate of Publication with the New York Division of Corporations, State Records and Uniform Commercial Code.
New York City has fees upwards of $1500-$2000 for newspaper publishing. One way to save on fees is to designate a registered agent service that’s located outside of the city.
Fee: $50 payable to the Department of State (Nonrefundable)
STEP 5: Create Your New York LLC Operating Agreement
All New York LLCs are required to have an operating agreement. This may be a verbal or written agreement. We would suggest a written agreement.
Explain an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC. this agreement outlines the company structure and the responsibilities there in.
Are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
For more information on operating agreements, read our New York LLC operating agreement guide.
Filing Your New York LLC Operating Agreement
What are the state requirements?
The State of New York requires every LLC to file an Operating Agreement, regardless of whether the company has one or multiple members. Your Operating Agreement LLC New York will outline the structure and purpose of your company as determined by your LLC members and will bind all the members of your LLC
STEP 6: New York LLC EIN – You Need One Here’s How to Get it
What is an EIN? The Employer Identification Number (EIN), Federal Employer Identification Number (FEIN), or Federal Tax Identification Number (FTIN), is a nine-digit number issued by the Internal Revenue System (IRS); an Employer ID Number is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.
Why do I need an EIN? An EIN number is required for the following:
- To open a business bank account for the company
- For Federal and State tax purposes
- To hire employees for the company
Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
GET AN EIN
Option 1: Request an EIN from the IRS APPLY ONLINE
Option 2: Apply for an EIN by Mail or Fax DOWNLOAD FORM
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999 Fax: (855) 641-6935
Do I need an EIN for my LLC?
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.
Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number
Keep Your Company Compliant
New York Business Permits & Licenses
Does a New York LLC need business licenses and permits?
To operate your LLC in New York you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.
The details of business licenses and permits vary from state to state. Make sure you read carefully. Don’t be surprised if there are short classes required as well.
Fees for New York business licenses and permits will vary depending on what sort of license you are seeking to obtain.
Always obtain the necessary New York business licenses and permits for your LLC here are some helpful links:
- Federal: Use the U.S. Small Business Administration (SBA) guide to federal business licenses and permits.
- State: Apply for licenses, permits and register with The State of New York’s License Center.
- Local: Chamber of Commerce and local business licenses and permits.
Dissolving an LLC in New York
If at any point in the future you no longer wish to conduct business with your New York LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your New York LLC, there are two broad steps:
- Close your business tax accounts
- File the New York Articles of Dissolution
When you are ready to dissolve your LLC, follow the steps in our New York LLC Dissolution Guide.