Form an LLC in 5 easy steps!
If you’re thinking of forming an LLC in New York State, here’s everything you need to know.
Step 1: Choose a name for your LLC
Your LLC must have a distinctive name that is different from the name of any other business entity registered with the NYS Department of State. You may reserve a name for 60 days by filing an Application for Name Reservation with the Department of State.
The application must be accompanied by a $20 filing fee.
Step 2: File Articles of Organization
The next step is to file Articles of Organization with the Department of State. The Articles must include:
- The LLC’s name and address
- The names and addresses of the LLC’s organizers
- The LLC’s purpose
- The names and addresses of the LLC’s members
- The date on which the LLC will dissolve, if applicable
The Articles must be signed by at least one individual who is authorized to form an LLC under New York law. You can file online, by mail, or in person at the NYS Department of State’s Albany office.
The filing fee is $200.
Step 3: Appoint a Registered Agent
An LLC must have a registered agent in New York State—this is an individual or business entity that agrees to accept service of process on behalf of the LLC if it is sued. The registered agent must have a physical street address in New York State and must be available during normal business hours to accept service of process.
Step 4: Prepare an Operating Agreement
An operating agreement is not required by law, but it is highly recommended that you prepare one anyway. This document sets forth the rules and regulations governing the operation of your LLC, including how decisions will be made, how profits and losses will be allocated, and what will happen if a member leaves the LLC. Having an operating agreement can help prevent disagreements among members down the road.
Step 5: Comply with Other Tax and Regulatory Requirements
Depending on the type of business you are conducting, you may need to obtain other licenses or permits from local, state, or federal agencies.
For example, if you will be selling goods or services taxable under New York State sales tax laws, you will need to obtain a sales tax permit from the NYS Department of Taxation and Finance.
You can apply for your permit online. In addition, all businesses—including LLCs—are required to obtain a federal employer identification number (EIN) from the IRS if they have any employees. You can apply for your EIN online, by fax, or by mail. There is no filing fee. Lastly, don’t forget to open a business bank account—this will make it easier to separate your personal finances from your business finances down the road.
Now that you know how to form an LLC in New York State, it’s time to get started on your new venture!