The Complete Guide to Set Up an LLC in New York

(Photo : The Complete Guide to Set Up an LLC in New York)

Forming and operating a Limited Liability Company (LLC) in New York has become very attractive for upcoming business owners. The progressive activities of the New York economy have given more insight and business support over the last few years, as the state has been experiencing its lowest unemployment rate in decades. The formation process has seen some improvements, as both state and federal requirements now make it straightforward for people to set up an LLC.

Step 1

After establishing your business idea, and deciding on what type of service and goods you're bringing to the market, the first step is to create a name for your LLC.  New York State laws make it clear that new names should, contain the words or abbreviations of LLC or L.L.C., not contain words bank, lawyer, mortgage, doctors, or academy and must be distinct from already registered and operating New York LLCs.

Ensuring your name is compliant with the state regulations is important, and reviewing the naming guidelines will help to better inform you about it.

Step 2

Appointing a registered agent will guarantee one designated person within the LLC can act and become the link between your business and the state or federal government. Registered agents are named individuals who will be in charge of receiving and sending out any formation documents, service of process information, and taxation reporting. Using registered agent services makes the process easier, more convenient and price friendly. By using these services, you can keep your information private and publication costs low.

Step 3

Filing Articles of Organization will legitimately form your new LLC. The process is easier as in the past, and business owners can make use of formation services to help improve the process. Owners can file these documents on their own, by using the submission forms provided by the New York Department of State Division of Corporations State Records and Uniform Commercial Code website. Processing procedures take around 3-5 business days to be completed.

It's important to remember that a $200 filing fee is applicable, and is payable to the Department of State Division of Corporations, State Records and Uniform Commercial Code, One Commerce Plaza 99 Washington Ave. Albany, NY 12231.

Step 4

Publishing Notice of Articles of Organization entails new LLC owners to publish their articles in any two county newspapers for 6 weeks within the first 6 months of formation. Additionally, this comes with a $50 filing fee, after the publication process is completed, newspapers will authorize a Certificate of Publication and an Affidavit of Publication which owners need to submit with the New York Department of State.

Step 5

Writing up an LLC operating agreement will give both the business members and state authorities a clear distinction which person within the LLC is responsible for certain departments, profits shares, dividends, distribution of legal roles, etc. This document is a crucial part of the formation process, as it will help give protection for members in the event of lawsuits, bankruptcy, and act as equilibrium in regards to profits. 

Step 6

The IRS in hand with state and federal government mandates that new LLC obtain an EIN or Employer Identification Number from the IRS website. This gives the businesses the ability to hire new staff members, register and file state and federal taxes, and also open a business bank account. Financial entities require an EIN for business accounts, as this will help with improved payments and transactions.

New LLCs are obligated to stay compliant with both state and federal tax legislation, and should annually file their tax returns or deductions with both government bodies. Certain products and goods providers will need to obtain licenses and trading permits, thus it's good to review our step-by-step guide on how to set up an LLC in New York for further information.