Starting an LLC in New York is simpler than you think, and it will only cost you $200. Read on for the steps you need to take to create your very own New York LLC.
1. Name Your Business
Your new business needs a name. You can choose any name you like, perhaps using your given name or even a name suggestive of the niche you intend to trade in, such as Thomas Plumbing LLC or PlumbSafe LLC. Be as creative as you like, but make sure you stick to the following loose guidelines:
2. Appoint a Registered Agent
When creating a business in New York, the Secretary of State is the registered agent by default, so if you are the subject of a lawsuit, the paperwork is sent to them, from where it is forwarded to your registered business address or agent’s address.
You don’t need to appoint a registered agent to handle the formation documents, process serving, business taxes, and reporting, but it’s advisable, as when you publish the notice (see below), it prevents your home address from appearing in the public domain. It also reduces publication costs if you select a registered agent outside NYC.
Our recommended Registered Agents:
Starting at $49
Starting at $225
3. File Articles of Association
Articles of Association must be filed with the New York Secretary of State. This can be done online or sent in the post. The Articles of Association is a legal document that contains the name of the LLC, the county where it is located, and the name and address, among other things.
Before you file your formation document, give some thought to how you want the business to be structured. LLCs can be managed by members or by managers. This determines who makes the decisions and how power is distributed within the company.
It can take 3-5 days to file Articles of Association in New York.
Filing- 2 options
Option 1- File online with the State of New York:
Option 2- File by mail. find the address below:
Filing Cost: It cost $200 to file, this is payable to the Department of State (Nonrefundable)
Department of State Division of Corporations
State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231
4. Publish a Notice or Articles of Association
New York has publication requirements for LLCs. A copy of the Articles of Association must be published within 120 days of the LLCs formation, one notice in a weekly newspaper, and one notice in a daily newspaper. Check with the local country clerk to see which newspapers are approved.
Once the notices have been published, you’ll receive an affidavit of publication. This, along with a certificate of publication, should be sent to the NY Department of State.
Filing Certificate of Publication with New York
Publishing Cost: It is common in New York City to find fees upwards of $1500-$2000 for newspaper publishing. We recommend avoiding these big fees by designating a registered agent service that’s located outside of the city.
Tip: Use Zenbusiness (registered agent service) who are located outside the city where publishing fees are usually less than $200.
Fee: You need to pay $50 to the Department of State (Nonrefundable)
5. Create an Operating Agreement
Your new LLC now needs an operating agreement, which states ownership and operating procedures, such as profit distribution and the company dissolution protocol.
6. Apply for an EIN
Finally, apply for an EIN from the IRS. This is an official business identification number. It allows you to open a business account and hire employees.
Always seek professional advice if you need help setting up a company in New York.