How to Start an LLC in New York

Last updated on 04 Apr 2025

How to Form an LLC in New York | Complete Guide

A Step-by-Step Guide

How to Form an LLC in New York

Opening a Limited Liability Company (LLC) in New York is an excellent method of safeguarding your personal assets and lawfully organizing your business. While opening an LLC in New York is a simple process, it's vital to adhere to the steps diligently to maintain compliance and prevent delays. This guide will take you through the process of opening your New York LLC with current and correct information.

What is an LLC?

An LLC, or Limited Liability Company, is a nifty business entity that gives legal protection to the owners (members). It protects personal assets from the business liabilities, so your personal property, like your home or car, will usually be safe in case the LLC is sued. An LLC also provides pass-through taxation, so the profits of the company are taxed at the member level, not the business level.

Personal Asset Protection

An LLC provides a legal barrier between your personal assets and business liabilities, protecting your savings, home, and other personal property from business debts and lawsuits.

Tax Flexibility

LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding double taxation while providing options for how you're taxed.

Management Freedom

New York LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Forming an LLC in New York in 6 Easy Steps

Select an Original Name for Your New York LLC

Your LLC's name needs to be distinctive and different from other New York businesses. In choosing a name, follow these guidelines:

Required Words: The name should include "Limited Liability Company," "L.L.C.," or "LLC."
Prohibited Words: It should not contain prohibited words like "Attorney," "Corporation," "Chamber of Commerce," "State Police," or any name that might cause confusion between your business and a governmental agency.
Restricted Terms: The name must not be too similar to other New York state or federal agencies, such as the use of words like "FBI" or "FDA."
Domain Name: Before you make your LLC name final, it's a good idea to search for domain name availability in case you want to build a website for your business down the road.

Choose a Registered Agent for Your LLC

In New York, all LLCs must have a Registered Agent. The Registered Agent is the official contact between the business and the state. They receive significant legal documents, like lawsuits, tax documents, and formal state letters.

Registered Agent Requirements

Your Registered Agent can be:
- You, if you have a New York street address.
- Another person, like a manager or business partner, living in New York.
- A professional Registered Agent service, which we suggest because it is convenient and reliable.

Professional Service Benefits

If you use a professional service, make sure they are located in New York and have a way to accept documents during regular business hours. Professional services provide privacy, reliability, and ensure you never miss important legal documents.

Best Registered Agent Services for New York

ZenBusiness

ZenBusiness is a highly rated company that makes it easy to form an LLC. They provide Registered Agent services for $199 per year, including compliance notifications and a virtual dashboard to store all your business documents and filings.

Quick, guaranteed LLC registration.
Convenient compliance services.
Simple online platform with document access.

Cons: No nonprofit formations.

Northwest Registered Agent

Praised for its high-end customer support and data protection, Northwest Registered Agent provides its services for $125 per year. They also make it easy to access your company's documents through an online portal.

Strong data privacy policy.
A+ rating with the Better Business Bureau.
Supports corporation and LLC registration in all 50 states.

Cons: Higher upfront incorporation costs.

File Your LLC with the New York State Department of State

To create your LLC, you need to submit the Articles of Organization to the New York Department of State. You can submit it online or by mail.

Filing Fee

The fee for filing is $200. This is a one-time payment to register your LLC with the state.

Filing Options

Online Filing: This is the fastest method for registering your LLC, and you will receive quicker turnaround.

Mail Filing: If you decide to file via mail, submit your documents to:
Department of State
Division of Corporations, State Records, and Uniform Commercial Code
One Commerce Plaza, 99 Washington Ave., Albany, NY 12231-0001

The processing of online submissions usually takes 1-2 weeks. Mail filings will take longer. Expedited processing can be had for a fee.

Publish Your LLC Formation

New York requires LLCs to publish a notice of their formation in two newspapers within the county where your LLC is located. This must be done for six consecutive weeks. After the publication period, you'll receive an Affidavit of Publication, which must be filed with the state.

The publishing requirement can be expensive, and costs will differ based on the newspaper you select. This is a unique requirement in New York that many other states don't have, so it's important to budget for this additional expense.

Secure an Employer Identification Number (EIN)

Once your LLC is established, you'll require an Employer Identification Number (EIN) from the IRS. An EIN is required for tax reporting and for the ability to hire employees, open a business checking account, and obtain business licenses. You may get your EIN for free online from the IRS.

The EIN application process is straightforward and can be completed online in just a few minutes. Once approved, you'll receive your EIN immediately, which you can use right away for your business needs.

Meet New York's Ongoing Obligations

Once your LLC is established, there are a few ongoing requirements to maintain good standing:

Biennial Statement: New York requires LLCs to file a Biennial Statement with the Department of State every two years. The filing fee is $9.
Operating Agreement: While not required by the state, it is highly recommended to create an LLC Operating Agreement to outline the management structure and operational procedures of your LLC.
Taxes: Make sure your LLC complies with state and federal tax laws. Depending on your business, you might need to register for sales tax, employment tax, or other industry-related taxes.

After Your LLC is Registered - What's Next?

After your LLC is officially registered in New York, there are several important steps to take to ensure your business operates smoothly:

Open a Business Bank Account

Keeping your personal and business finances separate is crucial for maintaining the liability protection of your LLC. Open a dedicated business bank account to handle all business transactions.

Create an Operating Agreement

Though not legally required in New York, an Operating Agreement is strongly recommended. This document outlines how your LLC will be managed and can help prevent disputes between members.

Get Business Insurance

Protect your business with appropriate insurance coverage. Depending on your industry, you might need general liability insurance, professional liability insurance, or workers' compensation insurance.

Comply with Publication Requirements

Don't forget to complete the publication requirement within 120 days of your LLC's formation. Failure to do so could result in the suspension of your LLC's ability to conduct business in New York.

Frequently Asked Questions (FAQs)

How much does it cost to form an LLC in New York?

The New York state filing fee to create an LLC is $200. There can be further costs associated with advertising your LLC creation in local newspapers, depending on the costs.

Does my LLC need a Trade Name (DBA)?

In New York, you only require a "Doing Business As" (DBA) name if you intend to do business under a name other than your LLC's registered name. If you do, you'll need to file for a DBA.

How long does it take to process my LLC formation in New York?

The processing of online submissions usually takes 1-2 weeks. Mail filings will take longer. Expedited processing can be had for a fee.

May I act as my own Registered Agent in New York?

Yes, you can be your own Registered Agent if you have a physical New York address. Nevertheless, most business owners opt to hire a professional Registered Agent service for convenience and to guarantee compliance with legal regulations.

Do I need an Operating Agreement for my LLC in New York?

Though an Operating Agreement is not legally necessary in New York, it is strongly advised. This agreement explains your LLC's organization and prevents future disagreements between members.

What is New York's publication requirement for an LLC?

New York mandates that LLCs publish their creation in two newspapers for six successive weeks. Then, you have to submit the Affidavit of Publication to the Department of State. This can be expensive, depending on the papers you choose.

Does an LLC in New York have any other compliance requirements on an ongoing basis?

Yes, New York LLCs do need to file a Biennial Statement every two years, plus they need to have proper records, pay taxes, and comply with other state mandates. The Biennial Statement filing fee is $9.

Do I need an EIN for my New York LLC?

If your LLC will have employees or if you want to set up a business bank account, you will be required to get an Employer Identification Number (EIN) from the IRS. You will need this number for tax reporting purposes as well and can get it online at no charge from the IRS website.

Ready to Start Your New York LLC?

By following these steps and ensuring compliance with New York's unique requirements like the publication requirement, you'll be well on your way to establishing a successful LLC in the state. Remember that while the process has more steps than some other states, the benefits of having an LLC in New York make it worthwhile.

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