Forming an LLC in New York is simple. There are a series of steps you will have to work through. The most critical is filing your company articles of organization with the Division of Corporations of New York state. Check out our nine-step guide below for how to get a LLC in New York.
HOW TO GET A LLC IN NEW YORK
Are you a business owner and looking for how to form an LLC in New York? Well, you’re in the right place. Below we walk you through everything you need to know about creating an LLC in New York. It’s a simple process and it typically takes about 7 weeks for the company to be formed from when you file your documentation. Check out our step-by-step guide below for how to form an LLC in New York.
KEY TAKEAWAYS
- Choose a Company Name
- Agent for Service of Process
- Articles of Organization
- New York Publication Requirements
- Create an Operating Agreement
- Receive New York State Certificate
- Get Your EIN
- New York LLC Business Licenses
- Annual Filing & Fee
1: CHOOSE A NAME FOR YOUR NEW YORK LLC
The first thing you need to do when forming an LLC in the state of New York is to choose a name for your company. And, there are some rules you’ll need to take into account when considering a name, see below.
NEW YORK LLC NAMING RULES
Let’s take a look at the naming rules for a NY LLC.
• MUST CONTAIN LLC REFERENCE
Your company name must contain the words “limited liability company” or one of its abbreviations, L.L.C or LLC – for example, Swift Home Delivery LLC.
• NAME MUST BE UNIQUE
Your name must be unique and not be already registered by another company. It must be easily distinguishable from companies that are already on file. You can find out if your company name is available by searching the New York Department of State’s company database.
• RESTRICTED WORDS
Your company name cannot include any words that could lead to it being confused with a government agency. For example, it cannot use the words Treasury, State Department, FBI, or CIA.
There are also restrictions around the use of words such as bank, attorney, doctor, and university. The use of such words may include additional paperwork and professional licenses.
• USE OF AN ASSUMED NAME
If you want to use a name other than the name you register for your company during the LLC formation process, you are free to use a DBA name, (doing business as). To use a DBA you will have to register the fictitious name with the New York Department of State and pay a fee of $25.
RESERVING A NAME
Once you find a name that is available you can reserve it for 60 days. All you have to do is fill out an Application for Reservation of a Name and mail it to the New York Department of State Division of Corporations. This application comes with a $20 fee.
SECURE YOUR URL
Once you have secured your preferred company name we advise securing the URL associated with it. Taking ownership of a URL is a simple process and prevents anyone from sweeping in and claiming your company name as a website. You can purchase a URL website name for as little as $12.
2: AGENT FOR SERVICE OF PROCESS
In New York, the Department of State acts as the agent for service of process for all LLCs registered in the state. This means they will accept legal documents such as formation paperwork, service of process information, and tax documents on your behalf – and forward them to your LLC.
The New York Department of State is the first point of contact for anyone who chooses to serve your LLC with legal action. You can then choose to accept these legal documents directly from the state or appoint a registered agent to act on your behalf.
ADVANTAGES OF APPOINTING A REGISTERED AGENT
Let’s take a look at the advantages of appointing a registered agent for your New York LLC.
• REDUCED PUBLICATION COSTS
The primary advantage of appointing a registered agent for your New York LLC is to reduce your publication costs. To form an LLC in NY you will need to fulfill local publication notices. And, if you are using an address based in New York City these costs will set you back $1,500.
If you hire a registered agent outside the city you can use their address. This allows you to publish in local papers outside the city at a much-reduced rate. And, once the publication requirements have been met you can change your primary company address to anywhere you wish.
• IMPROVED PRIVACY
New York’s LLC formation requirements dictate that you publish a public notice of formation in multiple local newspapers. And, as part of this notice, you must include the company’s primary physical address. Hiring a registered agent allows you to use their address and protect your privacy. For more information see – What Is a Registered Agent?
3: ARTICLES OF ORGANIZATION
To form an LLC in the state of New York you’ll need to complete a form and submit it to the New York State Division of Corporations. The form you need is called DOS-1336 and can be accessed online. It captures all the information the state authorities need to officially register your company.
You can download the form, complete it, and submit it by mail. Or, you can complete it online and submit it electronically. Either way, you’ll have to include a payment of $200, payable to the Department of State. This fee is non-refundable.
If you are submitting by mail, you should post to the address below.
Department of State Division of Corporations
State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231
- For more, check out our full guide – New York Articles of Organization.
ARTICLES OF ORGANIZATION NEW YORK LLC
Completing the New York LLC Articles of Organization form is easy. The document will record the following information, see below.
- Company Name
- County Location
- Address for Official Correspondence
- Signature of the LLC Organizer
- Name & Address of Person Filing the Articles of Organisation
The NY secretary of state will review your documentation once it has been submitted. And, if your application is approved, your LLC will become a legal entity. This is the point at which your New York LLC is formed.
4: NEW YORK LLC PUBLICATION REQUIREMENTS
When you form an LLC in New York you must publish a notice in two newspapers within 120 days of the formation of the company. You are required to publish a copy of the articles of the organization or a notice related to the formation of the LLC for six successive weeks.
Of the two papers, one must be a daily edition and the other a weekly paper. You must publish in the local papers of the county you gave as the principal address of your LLC. And, you must choose from the papers that have been approved by the local county clerk for that county.
Once your publication requirements have been satisfied you will receive an affidavit of publication from the newspapers. This affidavit should be submitted to the New York Department of State, Division of Corporations, along with a publication certificate and a submission fee of $50.
5: CREATE AN OPERATING AGREEMENT
In New York, all LLCs are required by law to create an operating agreement. An operating agreement is a formal document that outlines how the company will be run and managed. The document must be created within 90 days of filing the company’s articles of organization.
There is no requirement to file the operating agreement with the New York state’s authorities. It is an important internal document that can be used to aid the smooth running of the LLC. All LLC members should sign the agreement – at which point it becomes a legally binding contract.
A typical New York LLC operating agreement will contain the following information, see below.
- Company Name
- Primary Address
- Purpose of Business
- Registered Agent Details
- Duration of LLC
- Member Details
- Member Contributions
- Profit & Loss Distributions
- New Member Admission Rules
- Member Departure Rules
- Company Management Structure
- Clauses of Indemnification & Liability
For more information see – What Is an Operating Agreement?
6: RECEIVE CERTIFICATE FROM NEW YORK STATE
Once your LLC application has been approved by the New York State Division of Corporations – your LLC is legally formed. This approval process takes approximately 7 weeks from the date you file your Articles of Organization. This completes the first stage in how to form LLC in New York.
Once your LLC has been legally formed, New York state will issue a certificate that confirms the creation of your LLC. You can then use this certificate to get an EIN (Employer Identification Number), apply for business licenses, and to open a business bank account.
7: GET YOUR EIN
An EIN is an Employer Identification Number. It is a nine-digit number assigned by the IRS. An EIN is used for tax purposes and works just like a social security number for a business. You can get an EIN for free by applying to the IRS. You can apply online or by mail. Check out the IRS website – how to apply for an EIN.
If your LLC has more than one member or plans to hire employees – you must get an EIN. And, if you own a single-member LLC but plan to have it taxed as a corporation, you must get an EIN for the company.
WHY DO YOU NEED AN EIN FOR NY LLC?
When discussing ‘How to get a LLC in New York’ we need to cover why you need an EIN. You will need an EIN for your newly formed LLC to perform several vital tasks, see below.
- File Federal & State Taxes
- Open a Business Bank Account
- Hire Employees
If you already had an EIN for an existing sole proprietorship that you changed to an LLC, you must get a new EIN. The LLC is seen as a new legal entity and the IRS requires that you obtain a new EIN for the company.
8: NEW YORK LLC BUSINESS LICENSES
What business licenses does an LLC need in New York? Depending on the nature of your business and the industry you operate in you may need to apply for both federal and state business licenses.
To find out what business licenses and permits you need for your New York LLC you should contact the local county or city clerk in the area your business will operate.
Additionally, some businesses will require a federal license if they operate in an industry that is controlled at a federal level. For more information on business license and permit requirements see – LLC Business Licenses.
9: NEW YORK ANNUAL FILING & FEE
Unlike most states, New York does not require LLCs to file an annual report. Instead, LLCs simply pay an annual fee. The New York state annual filing fee is calculated based on the company’s gross income from the preceding tax year. The fee ranges from $25 to $4,500.
However, LLCs that choose to be taxed as a corporation are subjected to a different fee structure in New York state. This type of LLC is taxed directly as a corporation. For more information on LLC annual reports, fees, and maintenance costs see – LLC Formation & Maintenence Costs by State.
HOW TO GET A LLC IN NEW YORK FAQ
Let’s take a look at the questions we most commonly get asked when covering how to form LLC in New York.
HOW MUCH DOES IT COST TO SET UP AN LLC IN NEW YORK?
It costs $200 to set up an LLC in New York. This is the fee you must pay when you file your company Articles of Organization with the Division of Corporations of New York State.
WHAT IS NEEDED TO FORM AN LLC IN NY?
To form an LLC in NY you will have to choose a company name, file your articles of organization with the state authority, fulfill the NY publication requirements, and create an operating agreement.
HOW DO I MAKE MY COMPANY AN LLC IN NY?
To make your company an LLC in NY you need to form a new LLC company. You can do this by choosing a company name, filing articles of organization with the NY state authority, fulfilling NY publication requirements, and creating a company operating agreement.
DO YOU NEED A BUSINESS LICENSE FOR AN LLC IN NY?
Yes, most companies will require a business license of some type to operate an LLC in NY. The license you need will depend on the nature of your business and the industry you operate in. For more information see – LLC Business Licenses.
HOW LONG DOES IT TAKE TO FORM AN LLC IN NEW YORK?
The time it takes to form an LLC in New York varies – but in general, it takes somewhere around the 7 week mark. This is the length of time it takes for your LLC to be approved from the time you submit your Articles of Organization to the NY department of state.
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ABOUT THE AUTHOR
Jennifer Matheis – LLC Formation Specialist
Jennifer is our in-house LLC formation specialist. She is a graduate of the Ross School of Business at the University of Michigan and holds a Master of Business Administration. Jennifer has worked as a business management consultant in an advisory role for many years.
Hailing from Buffalo New York, Jennifer is a firm believer in the ‘seize the day’ mantra. When she is not writing for My LLC Guide she is busy managing one of her many start-up ventures. She is a keen sports fan and regularly attends Madison Square Garden to support the New York Knicks.
Reserve your name and secure the URL for your company website. I think they are the 2 best tips. Once yo have these locked down you can fire ahead with filling out the rest of the paperwork.
When you form an LLC in New York don’t forget to get your New York State Certificate. It proves your LLC has been formed.