How to Form an LLC in New York
Steps to Form an LLC in New York
- Choose a Name for Your LLCAn LLC name must be distinguishable from all other LLCs, corporations or partnerships already on file with the Department of State. Section 204 of the Limited Liability Company Act also prohibits various words and phrases from being used in an LLC name.
- File Articles of OrganizationTo form an LLC, file Articles of Organization with the Division of Corporations. There is a $200 filing fee. An LLC can be formed online through the Department of State website.
- Appoint a Registered AgentAppoint a registered agent on the Articles of Organization to accept service of process and other important business mail on behalf of your LLC.
- Write an Operating AgreementMembers of the LLC should write an operating agreement either before or after filing the paperwork to form an LLC. The operating agreement should address the ownership and management of the company.
- Open Business Bank AccountsBusiness accounts can be opened in the name of the company to handle the company’s monetary trasnactions.
- Publish Announcement in County NewspaperLLCs in New York are legally required to publish an announcement in two local newspapers for six consecutive weeks declaring the formation of the company. The newspapers must reside in the same county as your business office.
- File Biennial StatementAfter you form an LLC, a biennial statement must be filed every two years in the month of formation. If the LLC was formed in June, you file the biennial statement in June. There is a $9 filing fee.
|New York LLC Facts|
|The Form||Articles of Organization|
|The Agency||Department of State Division of Corporations|
|The Filing Fee||$200|
|Our Fee||$345 (includes registered agent)|
|24 Hour Expedite||$25|
|Additional Filing||Newspaper Publication (2 Papers / 6 Weeks)|
|Biennial Statement Due Date||Anniversary Month|
|Biennial Statement Fee||$9|
How Much Does It Cost to Publish in New York Newspapers?
When you form an LLC in New York, Section 206 of the NY LLC Law requires you to publish an announcement in two newspapers for six consecutive weeks. The newspapers must reside in the county where your business office is located. Prices vary from county to county and paper to paper.
If you hire Filings Made Easy to form an LLC for you, we can take advantage of our location in Albany county. We can legally list our address as your business office location, and the notices can be published with two small circulation papers in Albany county. The fees are drastically less than what they would be in New York City.
The fee for publishing with the Albany newspapers is roughly $100 (varies depending on exact number of words).
New York Registered Agent
A New York registered agent must have a physical street address (not a PO box) where they accept service of process and important business mail on behalf of clients. This office must be open during regular business hours year round. When documents are signed for and accepted, they must be forwarded to clients in a timely manner.
When you form an LLC, you write an operating agreement to designate ownership of the company, the management structure, and the way the company will operate. An operating agreement should cover: initial members and their membership interest, voting rights, member responsibilities, management structure, how members can buy-in or sell-out, allocation of profits and losses, and annual meeting times and procedures.
How is an LLC Taxed in New York?
An LLC is a pass-through entity, and members pay taxes on profits on their personal income tax returns. The income tax rate in New York ranges between 4% and 8.97%.
LLCs must file a biennial statement every two years in the anniversary month of formation. If your company was formed in October, the statement is filed in October. There is a $9 filing fee.