Learn how to start an LLC in NY without any hassle and complicated paperwork. Just follow the process of Forming New york LLC that we shared in this guide.
LLC or Limited Liability Company is a US-based private form of company which is structured to pass through the taxation of sole proprietorship or partnership with the limited liability of the company. There are various perks of having this type of company, and one of them is the reason you are reading this article.
The process to start a limited liability company has quite a few things which require time, patience, and attention. So read this article very carefully till the end to clear up all the things regarding setting up LLC in NY. Also, share this piece of information with your friends who might find this article relevant. Let us not waste any more time and move further to the subject.
How to Start an LLC in NEW YORK?
There are various things to register an LLC in NY, and each one of them is crucial. The first thing, to begin with, is to fill up all the necessary documents (mentioned below) to NY division of corporations, State Records and Uniform Commercial Code. Also, you can file the documents both online & offline. The expense of starting an LLC in NYC is around $200. I have framed the process in petty steps for you to understand it better.
Filing The Documents
As mentioned before, the first step in starting a limited liability company is to file the necessary documents.
- Download the .PDF form from [HERE]. Completely fill the form with precise details and submit it to your state.
- You can also do it online from various portals, but filing it to the state will be more effective.
New York LLC Articles of Organization (Requirements)
Starting an LLC in New York is not that simple as you think as it involves a long list of requirements, as stated by New York LLC Articles of Organization. You are required to complete or file these requirements and submit to NY division of corporations, State Records and Uniform Commercial Code. In the form, you are required to mention the company name, which must include “LLC” in its name. Apart from that, you are required to list various other things: the name of the countries where your company will be located, office address to send legal notice/mails, organizer name, and some other information. Also, you can define the life-span of the company or even can opt for the perpetual existence that means it will be live forever, and anyone’s death does not affect the company’s life.
Create the New York LLC Operating Agreement
An Operating Agreement is a private document that is certainly crucial as it depicts all the private data of the company. It is not mandatory to have an operating agreement, but professionals subject it as an important document. This document speaks about your private things like owner, members, investments, and also profit plus its distribution. Creating the NY LLC Operating Agreement has way more important than I can explain. So if you are starting an LLC, then make sure you cover the Operating Agreement of your company.
Getting New York EIN or TAX ID Number
The federal tax ID is necessary to: get marked as an S corporation, hire employees & staff, and file tax returns. Also, every bank will ask about EIN to open the company’s bank account. Honestly, it is really simple and easy to get a TAX ID Number or EIN online, plus you are not required to pay any fee or charge either.
Another Important Requirement
According to Section 206 of the New York LLC Law, a company is required to publish their notice or articles in at least any two local newspapers before 18 weeks of the formation. The publishing fees or cost varies. After successful publications, you are required to submit a document (Certification of Publication) to the state department.
Note: Submitting the Certification of Publication will cost about $50.
Some Other Important Stuff
Apart from the mentioned thing, you are required to file the LLC Reports to the department every two years. The report barely contains anything relevant except the LLC’s contact information. The Biennial Report submission will cost a petty fee of $9. Also, the LLC is required to pay taxes in order to be in existence to the New York Department of Taxation.
I wish you good luck to you for your limited liability company in New York. I am not a geek into finance & accounts, but I can say that forming an LLC in NY is really simple but involves lengthy procedures.
How to make an LLC is the question most of the new entrepreneurs have. if you are starting a business in new york and California, then please refer to the guide on how to start an LLC in California and starting an LLC in Michigan.