How To Form an LLC In New York (NY)?

Want to learn how to form an LLC in New York? We’re here to help.

To form your LLC in New York, you must comply with specific state requirements and guidelines and submit the relevant documentation to the New York Department of State. All these can be daunting, complex, and challenging. But don’t worry!

We have drafted this step-by-step guide to walk you through the entire formation process, from choosing an LLC name to filing an article of organization and more. Read on to learn everything you need to do!

Pick a Name for Your New Company

Choosing a business name is usually the first step you’d take in forming any type of company — and an LLC is no different.

Yes, this seems like a simple task on the face of it, but there are some guidelines we recommend you follow. For example, choose a name that relates to your business activities — that way, it’s easy for customers to know what you do. Your name should also be easy to remember and pronounce.

Finally, make sure your business name complies with New York’s LLC naming requirements and guidelines. These include the following:

• Your New York LLC name must be unique and distinguishable from any other LLC in New York.
• Restricted words (such as attorney, bank, university, etc.) may need additional paperwork and a licensed professional, such as a doctor or lawyer, to be part of your New York LLC.
• Your New York LLC can not include words that may confuse it with government agencies.
• The chosen name for your New York LLC must include “limited liability company” or one of its acronyms (L.L.C. or LLC)

You can learn more about New York’s LLC naming requirements and rules on the New York Senate website.

Once you’ve come up with your preferred name, run an online business name search to make sure that it’s actually available. If it is, visit a domain registrar like Namecheap and buy a relevant web domain for your business, too.

Find and Hire a Registered Agent

New York law states that every LLC owner must nominate a registered agent when forming their company and retain an agent throughout the life of the business.

A registered agent can either be a business entity or a person who is designated to receive and forward all your legal and official correspondence documents.

While you can nominate yourself as your LLC’s registered agent, you must be available to receive official and legal documents during all regular working hours in New York. You must also be over 18 with a permanent physical address (not a P.O. box) in this state.

Sounds like a lot of stress and effort, right? That’s why we recommend you hire one of the following registered agent companies to do the hard work for you:

ZenBusiness

ZenBusiness is a distinguished name in the registered agent industry and voted #1 on Investopedia, Forbes, and MarketWatch. They offer everything you need from a top registered agent, including mail forwarding, fast turnaround times, access to a personalized dashboard, document scanning, email notifications, and expert handling of all your documents.

One of the main reasons why ZenBusiness has an excellent reputation is its $5K Grant Program, which aims to help struggling entrepreneurs start and grow their businesses.

Zen BUsiness charges $199 per year for its services.

Northwest

With thousands of positive online reviews and years of experience in the industry, Northwest will never fail to keep your LLC compliant. Their registered agent services include scanned documents, document storage, annual report reminders, pre-filled state forms, compliance alerts, and mail forwarding. You will also get access to their compliance calendar entirely free of charge.

Northwest charges $125 for its services. But this fee is reduced to $100 if you hire their registered agent services in four or more states.

LegalZoom

LegalZoom is a well-known name that provides premium legal services, including registered agent services. They have millions of happy customers and a stellar reputation for offering excellent services.

While their annual fee is higher than others — it costs $249 per year — you will get a comprehensive list of registered agent services, such as mail alerts, unlimited cloud storage, annual report reminders, and $1M in identity theft protection.

They also provide a Compliance Calendar to each of their customers, which allows you to track all your deadlines and dates seamlessly. Plus, if you already have a registered agent you are not satisfied with, LegalZoom offers to change that registered agent entirely free of charge.

File an Article of Organization

After hiring a registered agent, you can finally register your business by filing an Article of Organization with the state.

The easiest and fastest way to register your business in New York is to file an Article of Organization online via the New York Online Business Formation System. You’ll need to create an account using an active email address and your chosen business name. You’ll also need to pay the state filing fee, which is usually $200.

If you don’t want to file online, you can file your Article of Organization by mail or fax. This involves downloading and filling out the New York Articles of Organization Form. Mail the form together with a money order or check (not cash) for the state filing fee of $200 to the following address:

Department of State Division of Corporations State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231

Think About Writing an Operating Agreement

An Operating Agreement is an internal document that outlines the management structure of your LLC, liability clauses, the ownership percentage of each LLC member, the responsibilities and roles of each member, the profits and loss distribution structure, and more.

Creating an operating agreement is not an official requirement for all LLCs formed in New York. However, drafting one can make it much easier to run your LLC moving forward. For instance, an operating agreement can prevent disputes and conflicts because it defines everyone’s responsibilities and how profits are shared.

Obtain Licenses and Permits if Necessary

The most common state-level licensing requirement in New York is the Certificate of Authority. It is similar to a seller’s permit and allows your LLC to collect and pay the applicable sales tax for services and goods. There are also general business license requirements, such as a General Vendor license.

New York businesses that offer professional services, such as accounting, must obtain a professional license. A list of licensed professionals that fall under this category is maintained by the New York Office of Professionals.

Additionally, counties and cities within New York may have additional business licensing and permit requirements. The best thing to do is to check with the county, city, and town where your LLC operates to determine what licensing or permit you must purchase.

Sign Up for Federal and State Tax IDs

The next step in forming your LLC in New York is acquiring a Federal and State Tax ID. Not every LLC is legally required to acquire a Federal and State Tax ID — only businesses that are taxed as separate entities and have employees are legally obliged to get one.

Even if your LLC does not legally require a Federal and State Tax ID, acquiring one comes with various benefits. For instance, it makes it significantly easier to open a business bank account and file taxes. It also makes obtaining specific licenses and permits easier for LLC owners.

Acquiring a Federal and State Tax ID in New York is simple and completely free via the IRS website.

Open a Business Bank Account

Every LLC in New York is required to open a business bank account. This is because it is important to maintain a separate liability between the LLC owners and their businesses. Failure to comply with this liability requirement may result in your business entity being dissolved.

Opening a business bank and credit account in New York is straightforward. You only need to visit your preferred bank with the following documents:

• Federal and State Tax ID
• Operating agreement
• Article of Organization or Certificate of Formation

Some banks or financial institutions may also require you to have a minimum initial deposit amount. New York has many top banks to choose from, including the following:

• New York Community Bank
• Northern Credit Union
• Chase Business

Buy New York Business Insurance

It’s vital you protect your company’s assets. For this reason, most businesses in New York have at least general liability insurance in place to protect their LLC against personal injury claims. You may also consider purchasing a professional liability insurance policy if your New York LLC offers professional services, such as accounting.

In addition, any business entity in New York with one or more employees (workers) is legally required to obtain a workers’ compensation insurance policy. This insurance covers employees against work-related illnesses, injuries, accidents, and even death.

Get a competitive quote for your business insurance needs by visiting a comparison site like Insureon.

Buy an LLC Formation Package to Speed Up the Process

Forming a Limited Liability Company in New York can be a tedious process. Fortunately, if everything seems challenging and time-consuming, you can purchase an LLC formation package to speed up the process.

Many LLC formation companies in the United States provide LLC formation packages, and some even do it for free.

One of our top recommendations is Northwest. This LLC formation service provider offers a comprehensive LLC formation package with a registered agent service, operating agreement template, expedited processing, and annual report reminders. You can access all these services for only $225.

Another top recommendation is ZenBusiness. They won’t charge you anything for their Starter package except the state filing fee. This Starter package features all the essential tools to form your LLC in 2-3 weeks.

If you have a budget for it, you can purchase one of their two premium packages. For example, the Pro LLC formation package costs only $199 and includes expedited processing times. With it, you can expect your LLC to be ready in 4-6 business days.

Another option is the Premium LLC formation package, which costs $299. With this package, your New York LLC will be ready in 1-2 working days.

FAQs About Forming an LLC in New York

How Long Will It Take to Form My New York LLC?

You can form your Limited Liability Company (LLC) in New York immediately if you file your Article of Organization online. Mail filing can take up to eight months. Fortunately, there are three expedited processing options for mail filings:

• Two-hour expedited processing for an additional $150
• Same-day expedited processing for an additional $75
• 24-hour expedited processing for an extra $25

How Much Does It Cost to Set Up an LLC in New York?

Forming a Limited Liability Company (LLC) in New York costs $200, which is the cost of filing the Article of Organization with the state. There may be additional fees that you must cover, such as the $9 biennial report filing fee and the $50 fee for a Certificate of Publication.

Can I Act as my Own Registered Agent in New York?

Yes. You can nominate yourself as a registered agent for your New York LLC, provided you meet the minimum state requirements for being a registered agent. For instance, you must be 18+ years old with a permanent street address in New York. You must also be available to receive and forward legal and state documents during all regular business hours in New York.

Can I Form a Single-Member LLC in New York?

Yes. You can easily form a single-member LLC in New York by following the steps outlined in this guide. You must also abide by the guidelines and requirements of forming an LLC in New York. Similar to forming a multi-member LLC, you can also hire an LLC formation company to streamline and speed up the process.

Form Your New York LLC Today

Forming a Limited Limited Company (LLC) in New York is a straightforward process, there’s no reason you can’t do it yourself. But if you want someone else to do all the paperwork, then we recommend using an LLC formation company to expedite the process. They’ll have your company up and running in no time.

Also see:

• New York (NY) Secretary of State (SOS) LLC & Business Search
• New York (NY) Registered Agent Services
• How To Find New York Bookkeepers