How to Start an LLC in New York (2024 Guide)

If you’re considering forming a New York LLC, you’re making an intelligent choice as it solidifies your business legally and opens doors to new opportunities in the competitive New York market.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, create an LLC operating agreement, publish newspaper ads, and file a certificate of publication.

But there’s more.

Forming your LLC in New York can cost up to $2000. There is a $200 fee for filing your articles of organization, $300 – $1200 for ad notice, $39 for a registered agent (Northwest Registered agent), a $50 fee for a certificate of publication, and an annual tax filing fee that starts from $25.

If everything is correctly completed and you submit your paperwork online, your LLC will be formed instantly.

On the other hand, if you choose to file by mail, the process usually takes about seven business days.

This guide compiles all the information you need to open an LLC in New York today.

What Are the Steps to Start an LLC in New York?

To start an LLC in New York, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Choose the county where you’ll publish your newspaper ads
• Step 3. Designate a registered agent in New York
• Step 4. File your LLC’s Articles of Organization
• Step 5. Prepare your New York LLC Operating Agreement
• Step 6. Get an EIN from the IRS
• Step 7. Publish your Newspaper ads
• Step 8. File a certificate of publication
• Step 9. File a certificate of change (optional).

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Choose a Unique Name for Your New York LLC

Choosing a unique name for your New York LLC is crucial. You can’t have two businesses with the same name in the state.

Search the New York Business Entity Database to see if your desired name is available. This step helps you confirm that your name won’t conflict with existing businesses.

If your name is available but not ready to file your LLC, you should consider reserving it. New York allows you to file a name reservation form for $20. This gives you the right to use that name for 60 days.

Make sure your name includes “Limited Liability Company,” “LLC,” or “L.L.C.”

I would avoid words like “blind,” “handicapped,” “school,” “library,” history,” historical,” or “academy,” which might need extra approvals. It’s also a good idea to include a word that describes what your business does.

If you’re considering a website, check that the matching domain name is available and free from trademark issues.

Step 2: Choose How you Will Fulfill the New York LLC Publication Requirements

Choosing the proper county for your newspaper ads is essential. This decision affects the cost and the process of publishing your LLC’s announcement.

You must publish ads in two newspapers daily and weekly in New York. These ads must run for six consecutive weeks. The county where you conduct this publication determines your expenses.

Some counties charge $200 to $300, but others – especially those in the five boroughs – can charge $800 to $1,200.

Consider these points when deciding on the county for your newspaper ads. Choosing wisely can help manage your costs while meeting the New York LLC publication requirements.

Remember, you’re not publishing your ads in the newspapers yet. (You’ll do that after the Secretary of State’s office has approved your LLC.)

Right now, you’re just calling to get a price quote so you can decide whether to use a Registered Agent (in a cheaper county) to save money on the publication requirements or publish in your county.

Step 3: Choose a Registered Agent for Your New York LLC

A Registered Agent is a person or business that receives legal documents and notices for your LLC. This includes essential mail from the state and any legal papers.

Unlike many other states, New York doesn’t require your LLC to designate a registered agent. Instead, the Secretary of State automatically steps into this role, forwarding any legal documents to the business address you have on file.

You can choose your registered agent for your New York LLC. This can be more convenient and ensures you receive important documents, like legal notices, promptly and directly.

Who Can Be a Registered Agent?

You have a couple of options for your Registered Agent in New York:

• A Friend or Family Member: They must be over 18 and live in New York.
• A Registered Agent Service: These companies specialize in this role and can help manage your legal notices.

Requirements for New York Registered Agents

New York law requires registered agents to have a physical street address, not just a P.O. Box.

The address must be where the agent can consistently receive legal documents and official mail during regular business hours. Additionally, the registered agent must be at least 18 years old.

What registered agents do I recommend for New York?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 4: File Your LLC’s Articles of Organization

You must file the Articles of Organization to form your LLC in New York officially. This form informs the state about your new business.

You will submit this form to the New York Department of State, specifically the Division of Corporations. Filing can be done either online or by mail.

The Articles of Organization is a simple form that asks for:

• The name of your LLC
• The county where your business will be based
• A street address for business mail
• The organizer’s name and signature (this is you if you’re starting the LLC)

Step #2: File Online or by Mail: You can file your Articles of Organization online through the NY State website or by mailing the completed form to:

Division of Corporations
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231-0001

Step #3: Pay the Filing Fee: The fee for filing the Articles of Organization is $200. Whether you file online or by mail, this fee is the same and is a one-time cost.

Step #4: Obtaining Copies: Once filed, you will receive a receipt from the state. You can obtain a plain copy, certified copy, or certificate of existence for your LLC.

If you want a decorative certificate, it costs $25, and it’s printed on 11″ x 14″ parchment, great for framing.

Typically, processing takes about seven business days. If you’re in a hurry, you can pay an extra fee for faster service.

Step 5: Prepare Your New York LLC Operating Agreement

An Operating Agreement is a crucial document for your New York LLC. It outlines the roles and responsibilities of each member. This helps clarify how the LLC will operate.

Writing this agreement is essential within 90 days of filing your Articles of Organization. Though you don’t submit it to the state, it should be ready and shared with all members.

Here are some essential aspects to include in your Operating Agreement:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Many banks require an Operating Agreement when you open a business bank account. This document proves that your LLC is appropriately organized, especially if legal issues arise.

Keep this document with your business records. Each member should have a copy for reference.

Even if your LLC has only one member, having an Operating Agreement is still beneficial. It lays out clear guidelines and helps protect your limited liability status.

Step 6: Get an EIN for Your NY LLC

You need an Employer Identification Number (EIN) to operate your New York LLC. This number is like a Social Security number for your business. It identifies your LLC for tax purposes.

Why you Need an EIN:

• Open a Business Bank Account: This keeps your business finances separate from personal ones.
• Apply for a Business Line of Credit: An EIN is often required when you seek financing.
• Obtain Permits: Some licenses and permits require an EIN.
• Hire Employees: If you plan to pay workers, you need this number.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Long Does it Take to Obtain an EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 7: Publish your newspaper ads

In New York, publishing your LLC formation notice is an important step. You must do this within 120 days of filing your Articles of Organization.

Your publication must run in two newspapers designated by the county clerk. These ads should appear once a week for six consecutive weeks.

What You’ll Need:

• Date of Filing: Check the “Date of initial DOS filing” in the Business Entity Database.
• Newspapers: Contact the two designated newspapers.
• Ad Template: Prepare a newspaper ad that includes your LLC’s formation notice or articles of organization.

After Publication:

Once your ads have run for six weeks, each newspaper will send you the following:

• An Affidavit of Publication: This document proves the ads ran as required.
• A newspaper snippet: A photocopy of your ad for your records.

Keep these documents safe. You will need the two Affidavits of Publication when you file your Certificate of Publication with the state.

Step 8: File a Certificate of Publication

After completing the publication requirement, you must file a Certificate of Publication. This document proves that you have met your LLC’s publishing obligations.

You must collect the two Affidavits of Publication from the newspapers. These documents confirm that your announcement ran in the required publications.

You cannot file the Certificate of Publication online. It must be mailed to the New York Department of State. There is a $50 fee for processing the Certificate of Publication.

Once your Certificate is submitted, the Department of State will review it. You should expect to receive a Filing Receipt within 1 to 3 months of submission.

Keep a record of your submission, and be patient during this processing time. Your Certificate of Publication is vital in formally completing your LLC formation in New York.

Step 9: File a Certificate of Change (Optional)

After filing your Certificate of Publication, you can file a Certificate of Change if you need to update your LLC’s address. This step is optional and is mainly for those who published in a different county.

It costs $30 to file.

Before you file, ensure that you have submitted your Certificate of Publication. Wait until you receive your Filing Receipt, which proves the publication was filed correctly.

When to File

You should consider this step if:

• You are moving back to your original address.
• There’s a need to update your business registration details.

Completing this filing helps keep your LLC’s information current in state records. It’s a straightforward process that ensures your business is properly registered. Keep a copy of the Certificate of Change for your records after filing.

What are the Different Methods To Start a New York LLC?

When starting an LLC in New York, you have several options. Each method has benefits and challenges, depending on your budget, time, and business complexity.

DIY LLC Formation in New York

Choosing the DIY approach allows you to handle the entire process yourself. This method is cost-effective since you only pay state fees.

Pros:

• Low Cost: You only pay the filing fees.
• Complete Control: You manage every detail of the formation.
• Resources Available: The New York Department of State provides helpful guidance.

Cons:

• Time-Consuming: Completing the paperwork can take longer than expected.
• Complexity Risk: It may be challenging if your business needs particular requirements.
• Knowledge Needed: Requires a good understanding of legal requirements.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Hiring an attorney is the most comprehensive option, especially for complex businesses. They can provide personalized legal advice and draft necessary documents.

Pros:

• Expert Guidance: Attorneys help navigate complex regulations.
• Customization: Your legal needs are explicitly tailored to your business.
• Risk Reduction: A lawyer can help avoid potential legal issues.

Cons:

• High Cost: This is the most expensive option available.
• Time-Intensive: Meetings and consultations may take additional time.
• Less Control: You rely on the attorney for decision-making.

What is The Cheapest Alternative Way to Form an LLC in New York?

If you want to save money when starting your LLC, a do-it-yourself (DIY) approach is the cheapest option. The main cost involves a $200 filing fee to submit your Articles of Organization.

You can avoid extra charges from service providers or lawyers by handling the paperwork yourself.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in New York?

There are many New York LLC services to choose from. Choosing the wrong one can affect your New York LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best New York LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent is the best option for LLC formation in New York. Their commitment to customer service and transparency sets them apart. Additionally, their focus on privacy is a significant advantage for new business owners.

How Much Does It Cost To Form an LLC in New York?

Forming an LLC in New York involves several costs. Here’s a breakdown of the main expenses you should expect:

Requirement	Cost
Filing Articles of Organization	$200
Notice Publication (varies by county)	$300 – $1200*
Certificate of Publication	$50
Registered Agent LLC Formation (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	Free for one year (via Northwest)
Biennial Statement Filing Fee	$9
Annual Tax Filing Fee	From $25
EIN Application	Free
Total	$600 – 1500

Forming an LLC in New York can cost $1,250 – $1,300 or more when you include all expenses, especially if you account for varying publication costs. Be ready to manage both initial and ongoing expenses as your business grows.

Pros and Cons of Forming an LLC in New York

6 Important Things To Do After Creating Your New York LLC

After forming your New York LLC, there are vital tasks to ensure your business is compliant and set up for success. From understanding licenses to managing taxes, these steps are crucial for your LLC’s growth and legal standing.

1. Research the Best Licenses and Permits for Your Business

New York doesn’t have a state general business license.

However, depending on the location of your LLC, you may need a local business license or permit.

Different types of businesses in New York require specific licenses or permits to operate legally. You need to check both state and local requirements. Research to find what applies to your industry.

You can start by visiting the New York State’s website or your local municipality’s office.

Certain businesses, like restaurants or daycares, may need additional approvals. Contact local agencies to confirm if any permits are required. Without the correct licenses, you could face fines or legal issues.

2. Create Business Accounts for Your New York LLC

Opening a business bank account is essential for maintaining the legal protection offered by your LLC. This helps separate your assets from your business activities. Look for a bank that caters to small businesses or offers special rates for LLCs.

You’ll also want to secure a business credit card. This will help manage cash flow and simplify bookkeeping.

Keep your financial records organized. This will make it easier during tax season and provide a clear picture of your business’s economic health.

3. Understanding New York Tax Requirements and Managing Your Taxes

You’ll have tax obligations as an LLC in New York. If your LLC is a single-member entity, it will be taxed like a sole proprietorship. This means you’ll report income on your tax return.

Multi-member LLCs are generally taxed as partnerships, requiring additional forms like Form IT-204 for income reporting.

New York also mandates an annual filing fee for LLCs with income. You can expect to pay a minimum of $25, depending on your income level.

Familiarize yourself with sales tax regulations if you sell products, as you’ll need to collect and remit this tax accordingly. Consulting a tax professional can help you navigate these requirements effectively.

4. File Biennial Reports

Your LLC must file a biennial report in New York to stay compliant. This report updates or confirms your mailing address and is due every two years. You must file it during the month your LLC was initially formed.

Filing is simple and can be done online through the New York Department of State’s e-Statement Filing Service. The filing fee is $9.

File on time to avoid penalties. Late submissions can lead to fines and legal issues. Keeping a calendar reminder for this task can help you stay on track.

5. Get Business Insurance for Your NY LLC

Having business insurance is wise to protect your LLC. This can cover risks such as property damage or liability claims from clients or customers. Insurance needs vary based on business type, so consulting with an insurance agent is good.

Typical types of coverage include general liability, property, and workers’ compensation. Not having insurance can lead to significant financial loss.

Review your insurance needs regularly to adjust your coverage as your business grows and changes.

6. Setup Your Business Online Presence (optional)

In today’s digital age, online presence is essential for attracting customers. Start by creating a professional website that showcases your products or services. You can use DIY website builders or hire someone for help.

Social media platforms can also help market your business and connect with clients. Consider setting up accounts on Instagram or Facebook to engage with your audience.

This additional visibility can significantly impact your business growth. Establishing your brand online sets the stage for future success.

New York LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in New York, it’s essential to understand the differences between business structures. Each type has its pros and cons.

Sole Proprietorship

A New York sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A New York partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A New York corporation is the most complex structure, suitable for larger businesses aiming for significant growth.

Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits. However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

Using a New York LLC as an Estate Planning Tool

Forming a New York LLC can be beneficial if you want to keep your family business or valuable assets for future generations. This structure can help you minimize estate taxes and protect your assets.

Here’s how a family LLC works:

• You and your spouse can be appointed as managers and members of the LLC.
• You can transfer your assets, like businesses or real estate, into the LLC.
• Each year, you can gift portions of the LLC to your children, which can stay within tax exemption limits.

This strategy helps lower the taxable value of the LLC’s assets and protects it from creditors.

As you gradually reduce your ownership stake, the value of your estate also decreases. This approach may significantly reduce or eliminate death taxes.

Another key advantage is that transferring property to the LLC allows those assets to skip the probate process. This means they can be passed smoothly to other members without lengthy legal procedures.

It is essential to consult a knowledgeable New York probate and estate attorney for guidance. They can create an LLC operating agreement that meets your needs and maximizes tax benefits. This step ensures that your estate planning aligns with state laws and your family’s goals.

My Final Thoughts: Forming an LLC in New York

To start your LLC in New York, follow these essential steps:

• Choose a name that complies with state rules.
• File the Articles of Organization with the New York Department of State.
• Publish a notice in two newspapers for six weeks.
• Obtain your Certificate of Publication after publishing.
• Get an Employer Identification Number (EIN) from the IRS.
• File for any necessary permits or licenses.

The costs involved in forming an LLC in New York include:

• Filing fee: $200 for the Articles of Organization.
• Publication costs: Varies by newspaper.
• Annual tax fee: New York LLCs must pay at least $25 annually.

Starting an LLC can be straightforward when you follow the proper steps and understand the costs. Being well-prepared will help you navigate the process smoothly.

Learn More About Starting an LLC in New York

If you need additional help to start an LLC in New York, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in New York?

Yes, you can change your registered agent in New York. You must file a form to update your registered agent information with the state.

How do I change my New York LLC’s name?

You must file an Articles of Amendment with the New York Department of State to change your LLC’s name. This form allows you to update your LLC’s name on the public record officially.

How do I renew my New York LLC?

New York LLCs must file a biennial report to stay in good standing. This report must be filed every two years, and a fee must be charged to renew your LLC status.

How do I dissolve an LLC in New York?

You must file Articles of Dissolution with the New York Department of State to dissolve your LLC. Make sure all debts and taxes are settled before this process.

How do I add a member to a New York LLC?

To add a member, update your operating agreement to reflect the new member. Then, if necessary, file an amendment with the New York Department of State.

How do I add a DBA to an LLC in New York?

To add a Doing Business As (DBA) name, you must file a Certificate of Assumed Name with the county clerk where your LLC is. This allows your LLC to operate under a different name.

Can a minor own an LLC in New York?

Yes, a minor can own an LLC in New York. However, a legal adult must act as the representative in any legal matters.

What is the deadline for filing a New York LLC biennial report?

The deadline for filing your biennial report is every two years on your LLC’s formation anniversary. Make sure to file on time to avoid penalties.

Does LLC expire in New York?

An LLC does not expire if it remains in good standing and files all necessary reports. Failing to file can lead to dissolution.

Can a non-resident open an LLC in New York?

Yes, a non-resident can open an LLC in New York. There are no residency requirements to form an LLC in the state.

Can I buy a house or car with my LLC in New York?

You can buy property or vehicles using your LLC. Just keep proper records and deal through the LLC to maintain liability protection.

Can you have multiple businesses under one LLC in New York?

You can operate multiple businesses under one LLC, but each company may need a separate DBA. This can simplify management while maintaining liability protections.

Is New York an excellent state in which to form an LLC? Is it worth it?

New York has its pros and cons for LLC formation. It’s a popular choice due to its solid legal system and business opportunities, but it has higher fees and regulatory requirements.

Can one person form an LLC in New York?

Yes, one person can form a single-member LLC in New York. This structure protects personal liability while allowing you to manage the business independently.