It is clear that there has been a huge boom in the number of new business formations. In 2021, more than 5.4 million applications were filed. Limited liability companies (LLCs), remain a popular type of business because the startup process is simple and affordable.
This guide will help you to obtain an LLC in New York by 2022. We will walk you through each step, and highlight important considerations.
How to Start a New York LLC
Before you submit your LLC documents, there are some important details that you should remember. These sections will explain what you need to do before you file.
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Choose Your LLC Business Name
Before you register your LLC, make sure that the name you want is available. To double-check availability of business names, the Department of State Division of Corporations offers a searchable database . To confirm that your name is available for registration, send a request to name search to the NY Department of State along with $5.
After you have settled on a name, and confirmed that it can be registered, please remember to include the abbreviations L.L.C. or L.L.C.
You can submit an Application to Reservation of Name if you’re not ready to file your LLC documents. The $20 fee must be paid to the Department of State. You can keep your chosen name for up to 60 days after filing.
New York Secretary Of State to be Registered Agent
Most states require that LLCs name an individual or business as the registered agent of the LLC. The agent is responsible for accepting legal documents and lawsuits on behalf of the company. New York’s Secretary of State must be named as the registered agent for your LLC. The Secretary of State must have an address where it can mail documents.
New York allows you to name another New York resident or registered business as your LLC’s representative. However, this is not mandatory. There are many options available if you decide to employ a registered agent company. It costs between $49 to $300. To ensure that you get the best deal, make sure you check out the services available.
Make an Operating Agreement
New York LLCs must sign an operating agreement. This is described in Section 417. The agreement should include information such as details about the business and how it will operate in daily operations. It must also address individual obligations and responsibilities. You can make changes to the operating agreement at any time. You cannot make any changes to the operating agreement without the consent of all parties.
An operating agreement can be adopted before filing articles of organization, or within 90 days. They are not filed with state.
Filling out your New York LLC documents
You will need to file the articles for organization if you want to proceed with your formation documents. To register in New York, an out-of-state LLC must submit an Application For Authority. For $250, foreign LLC registrations are charged. Domestic LLCs pay $200.
For foreign entities that wish to do business in New York, they must include a Certificate or Good Standing. Make sure the certificate’s date is no more than one year old than your application.
An online or mail application can be used to create an LLC in New York. Although mail applications can take a while to be processed, you can expedite them by paying a fee. Digital applications can be processed instantly, and there is virtually no delay.
How to Establish Your LLC in New York
After you have formed your LLC successfully, there are still things to do. These are the sections that follow. These important tips will ensure that your business venture is successful.
Newspaper Publication Requirement
New York LLCs must publish notices about the LLC’s creation in at least two newspapers. These newspapers should be designated by the county clerk for the county where the LLC is located. Notices must be published once per week for six weeks. Notices will be charged a fee by the newspapers.
After the notices are published, the newspapers will give you affidavits for publication. These must be filed with the New York Department of State together with a Certificate of Publication. The filing fee is $50. The certificate must be filed within 120 days after the LLC is formed.
Register for an Employer Identification number
A federal employer identification number, or EIN (employer identification number), is nine digits in length. It is also known as a federal tax identification number(FTIN) or federal employer identification number [FEIN]. Federal law requires that all LLC owners obtain an EIN. An EIN is required for all LLC owners, even those with no employees. However, single-member LLCs can still use Social Security numbers. Your EIN can be obtained on The IRS Website.
File Your Biennial Statement
An LLC must file a biennial report every two years. The statement contains the address where the secretary of states can deliver the service of process. Online filing is possible and costs $9.
Correct Any Filing Errors
Even if your paperwork is double-checked before you file, mistakes can still happen. You must immediately correct any errors after processing the LLC paperwork. Send a Certificate of Correct along with the $60 filing fee to New York State Department of State Division of Corporations, One Commerce Plaza 99 Washington Avenue Albany, NY 12231.
New York LLC dissolution
You can file Articles of Dissolution with Department of State if you wish to, or there are no more members of the LLC. The fee for the dissolution is $60. Before you attempt to dissolve the company, make sure you have paid all outstanding debts and financial obligations.
Frequently Asked Questions (FAQs).
How do I create an LLC in New York City?
Domestic entities pay $200 to file articles of organization. Foreign entities pay $250 to submit an Application of Authority (Division of State) Your documents can be submitted online or by mail.
Are New York LLCs required to file an annual report
New York LLCs are required to file a biennial reporting every two years. The fee is $9
What do I need to do to publicize my new LLC?
All New York LLCs must post ads in at least two local newspapers within 120 days of their formation. Within 120 days after forming your LLC, you must publish the ads and provide proof of publication.