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Six Basic Steps to Start an LLC in New York
Creating an LLC in New York is easy
To form an LLC in New York you will need to file your Articles of Organization with the New York Department of State Division of Corporation, which costs $200. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your New York Limited Liability Company.
Follow the step-by-step guide below to start your New York LLC today and get your business up and running.
STEP 1: Name Your New York LLC
Choosing a company name is the first and most important step in starting an LLC in New York. Be sure to choose a name that complies with New York naming requirements and is easily searchable by potential clients.
1. Follow the New York LLC naming guidelines:
- Your name must include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
- Your name must be distinguishable from any other New York limited liability company, limited partnership, or corporation.
- Learn more about NY LLC naming guidelines on Business Enitity Search Department of State's website.
2. Is the name available in New York? Make sure the name you want isn't already taken by doing a name search on the State of New York website.
3. Is the URL available? We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
FAQ: Naming a New York LLC
What is an LLC?
LLC is short for Limited Liability Company. It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. An LLC is one of several business structures, such as a sole proprietorship, partnership, and corporation (C-Corp and S-Corp). For more information, read our What is an LLC guide.
Watch our 2 minute video: What is an LLC?
Do I need to get a DBA or Trade Name for my business?
Most LLCs do not need a DBA (Doing Business As). The name of the LLC can serve as your company’s brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.
To learn more about DBAs in your state, read our How to File a DBA in New York guide.
STEP 2: Choose a Registered Agent in New York
In New York, the Secretary of State acts as the registered agent for service of process for all New York LLCs by default. You can, however, choose to designate someone besides the Secretary of State as the registered agent for your New York LLC.
If you choose to use a registered agent service, the Secretary of State will still be the first point of contact for the state and for anyone who might serve your LLC with legal action.
The Secretary of State will forward the following to your LLC’s principal address or the address of your designated registered agent:
- All formation documents
- Any service of process information
- Documents regarding taxation and reporting
TIP
The principal address of your business must be published in a newspaper upon formation. Since some LLC’s are started at home, this means your home address will be publicized. To keep your information private and publication costs low, consider using a registered agent service.
Why would you use a Registered Agent Service in New York?
1. Reduce Publication Costs
New York requires newly formed LLCs to publish a notice of formation in local newspapers. Publication costs around $1,500 or more if the principal address is in New York City. A registered agent service located outside the city allows an LLC to use the registered agent’s address as the principal address which greatly reduces the cost of publication.
2. Maintain Privacy
New York's LLC publication requirements mandate that your principal LLC address be publicly shared. Hiring a professional registered agent service will allow you to use their address instead of yours which will protect your personal privacy.
Read our guide to New York LLC Publication Requirements.
After the publishing requirements are met, you can change the location of your principal office to anywhere in New York State. You will not need to publish additional notices.
Recommended: ZenBusiness offers a reliable registered agent service and excellent customer support.
FAQ: Nominating a New York Registered Agent
Can I be my own Registered Agent in New York?
Yes. You or anyone else in your company can serve as the registered agent for your LLC.
Read about being your own registered agent.
Is a registered agent service worth it?
Using a professional registered agent service is an affordable way to manage government filings for your New York LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
For more information, read our article on New York registered agents.
STEP 3: File the New York LLC Articles of Organization
To create an LLC in New York, you will need to file the Articles of Organization with the Secretary of State. You can apply online or by mail. Some states refer to the Articles of Organization as the Certificate of Formation or Certificate of Organization.
The New York Articles of Organization for an LLC (limited liability company) is a legal document used to officially form your business. You’ll be expected to provide the name of your LLC, the county it will be located in, the name and address of your registered agent, your starting date, the state filing fee, and the filer’s name and mailing address.
Finally, when filing the New York LLC Articles of Organization, it is optional, but recommended to state whether LLC will be member-managed or manager-managed. Read our guide about member-managed and manager-managed LLCs before you file.
Other optional statements include:
- Effective Date
- Dissolution Date
- Liability Statement
After filing the Articles of Organization, you must fulfill New York’s Publication Requirement, and we recommend obtaining an Employer Identification Number (EIN) if you plan on hiring employees and to open a business bank account.
File the Articles of Organization
OPTION 1: File Online with the State of New York
- OR -
OPTION 2: File by Mail
State Filing Cost: $200 payable to the Department of State (Nonrefundable)
Mail to:
Department of State Division of Corporations
State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231
If you’re expanding your existing LLC to the State of New York, you will need to form a Foreign LLC.
FAQ: Filing New York LLC Documents
How long does it take to form an LLC in New York?
Filing the Articles of Organization takes 3 to 5 business days by mail and is immediate online after being approved.
What is the difference between a domestic and foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state. If you are filing as a Foreign New York LLC read our guide for more information.
STEP 4: Follow New York LLC Publication Requirements
What is the New York LLC publication requirement? New York requires that within 120 days of formation all LLCs publish a copy of the Articles of Organization or a notice related to the formation of the LLC in two newspapers (one weekly and one daily).
Can I pick any newspapers I want? No. The newspapers must be approved by the local county clerk of the county you designate in your Articles of Organization. After publication, the printer or publisher of each newspaper will provide you with an affidavit of publication.
Where do I file my Certificate of Publication? You must submit your Certificate of Publication along with your affidavits of publication to the New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.
Read our full guide for New York publication requirements to learn how small businesses handle them.
File Certificate of Publication with New York
File a Certificate of Publication with the New York Division of Corporations, State Records and Uniform Commercial Code.
New York City has fees upwards of $1500-$2000 for newspaper publishing. One way to save on fees is to designate a registered agent service that’s located outside of the city.
Recommended: ZenBusiness Registered Agent Service is located in Albany, where typical newspaper publishing fees range from $80 - $100.
Fee: $50 payable to the Department of State (Nonrefundable)
FAQ: New York LLC Publication Requirements
What does a notice of formation look like?
New York provides strict guidelines for the format of the notice of publication. Based on those guidelines, we have made a sample notice you may find useful.
Format:
[YOUR LLC NAME] LLC. Arts. of Org. filed with the SSNY on __/__/__. Office: _____ County. Northwest Registered Agent, LLC designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to Northwest Registered Agent, LLC at 90 State St #40, Albany, NY 12207. Purpose: Any lawful purpose.
Example:
Orange LLC. Arts. of Org. filed with the SSNY on 7/28/17. Office: Albany County. Northwest Registered Agent, LLC designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to Northwest Registered Agent, LLC at 90 State St #40, Albany, NY 12207. Purpose: Any lawful purpose.
STEP 5: Create a New York LLC Operating Agreement
All New York LLCs are required to have an operating agreement. This may be a verbal or written agreement.
What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
For more information on operating agreements, read our New York LLC operating agreement guide.
Recommended: Download a template or create a Free Operating Agreement using our tool.
FAQ: Creating a New York LLC Operating Agreement
Do I need to file my operating agreement with the State of New York?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states like New York do legally require LLCs to have an operating agreement in place.
STEP 6: Get a New York LLC EIN
What is an EIN? The Employer Identification Number (EIN), Federal Employer Identification Number (FEIN), or Federal Tax Identification Number (FTIN), is a nine-digit number issued by the Internal Revenue System (IRS); an Employer ID Number is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a social security number (SSN) for the company.
Why do I need an EIN? An EIN number is required for the following:
- To open a business bank account for the company
- For Federal and State tax purposes
- To hire employees for the company
Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
NOTE
FOR INTERNATIONAL APPLICANTS: You do not need an SSN to obtain an EIN. Read our guide to getting an EIN for international entrepreneurs.
Get an EIN
Option 1: Request an EIN from the IRS
OR
Option 2: Apply for an EIN by Mail or Fax
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax:
(855) 641-6935
FAQ: Getting a New York LLC EIN
How do I get an EIN if I don’t have a social security number?
An SSN is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application. Read our guide for international EIN applicants.
What tax structure should I choose for my New York LLC?
When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing S corporation (S Corp) status. We recommend consulting with a local accountant to find out which option is best for you.
Considering Using an LLC Formation Service?
We reviewed and ranked the top 5 LLC formation companies.
Find out which is the best LLC service for you.
Protect Your Business & Personal Assets
Get a Business Bank Account & Credit Card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your New York LLC is sued. In business law, this is referred to as piercing your corporate veil.
You can protect your LLC in New York with these two steps:
1. Opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Get $200 when you open a business checking account with Chase. Learn more.
2. Getting a business credit card:
- Helps you separate personal and business expenses.
- Builds your company's credit history, which can be useful to raise capital later on.
Get Insurance for your New York LLC
Business insurance helps you manage risks and focus on growing your New York LLC. The most common types of business insurance are:
- General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
- Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
- Workers' Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In New York, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers' compensation insurance. Get a free quote with ADP.
How much will the right insurance cost you? Click here to find out.
Properly Sign Legal Documents
Improperly signing a legal document as yourself and not as a representative of the business can leave you open to personal liability. When signing legal documents on behalf of your LLC in New York, you could follow this formula to avoid problems:
- Formal name of your business
- Your signature
- Your name
- Your position in the business as its authorized representative
See the image below for an example.
This ensures that you are signing on behalf of your New York LLC and not as yourself.
Learn more on how to protect your business & personal assets by reading our article - How to Maintain your LLC Corporate Veil.
Keep Your Company Compliant
New York Business Permits & Licenses
Does my New York LLC need business licenses and permits?
To operate your LLC in New York you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.
The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.
Fees for New York business licenses and permits will vary depending on what sort of license you are seeking to obtain.
Find out how to obtain necessary New York business licenses and permits for your LLC or have a professional service do it for you:
- Federal: Use the U.S. Small Business Administration (SBA) guide to federal business licenses and permits.
- State: Apply for or learn more about licenses, permits and registration with The State of New York's License Center.
- Local: Contact your local Chamber of Commerce and ask about local business licenses and permits.
New York LLC Tax Requirements
Depending on the nature of your business, you may be required to register for one or more forms of state tax. This can be done online through the NY.gov portal.
New York Sales Tax
If you are selling a physical product, you'll typically need to register for a seller's permit, known as a Sales Tax Certificate of Authority, with the New York Department of Taxation and Finance.
This certificate allows a business to collect sales tax on taxable sales.
Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.
Read our sales tax guide to find out more.
New York Employer Taxes
If you have employees in New York, you will need to register for Unemployment Insurance Tax with the New York Department of Labor and Employee Withholding Tax with the New York Department of Taxation and Finance.
Industry Specific Taxes
If your business falls within a specific industry, additional state taxes may apply.
Register for New York State Taxes
You can register your New York LLC for all of your business taxes through the New York Business Express Portal.
Annual Fee
There is an Annual Filing Fee for each LLC formed in New York which varies depending upon your LLC’s income.
Federal LLC Tax Requirements
Most LLCs will need to report their income to the IRS each year using:
- Form 1065 Partnership Return (most multi-member LLCs use this form)
- Form 1040 Schedule C (most single-member LLCs use this form)
Read our LLC Tax Guide to learn more about federal income taxes for LLCs.
Avoid Automatic Dissolution
LLCs may face fines and even automatic dissolution when they miss one or more state filings. When this happens, LLC owners risk loss of limited liability protection. A quality registered agent service can help prevent this outcome by notifying you of upcoming filing deadlines, and even submitting reports on your behalf for an additional fee.
Recommended: ZenBusiness offers a reliable registered agent service and excellent customer support.
We understand that creating an LLC in New York and getting your business up and running comes with many challenges. To help you succeed, we compiled the best local resources in every major metro area in New York. You can get free assistance in the following areas:
Make Running Your Business Easier
After starting a business, two of the most important things you can do are get professional accounting and hire the right employees. Streamlining these processes can save you time and money as your business grows.
Hiring Employees in New York
If you plan to hire employees for your New York LLC, stay compliant with the law by following these steps:
- Verify that new employees are able to work in the US
- Report employees as "new hires" to the State
- Provide workers' compensation insurance for employees
- Withhold employee taxes
- Print compliance posters and place them in visible areas of your work space
For more information visit New York’s Department of Labor
Recommended: Check out our Hiring for your Small Business Guide for resources like sample job descriptions, payroll service reviews, and more.
FAQ: Hiring Employees in New York
What is the minimum wage in New York?
The statewide minimum wage in New York is $11.80 per hour. In New York City, the minimum wage is $15.00 per hour. For Westchester, Nassau, and Suffolk counties, the minimum wage is $13.00 per hour.
How often do I need to pay employees in New York?
For manual workers, a weekly payday is required. For clerical workers and others, payments must be made twice per month.
Accounting for your New York LLC
It’s critical to get your books in order-- even if you haven’t officially opened for business. A well managed accounting system will help you:
- Track your business finances, including bills, expenses and income.
- Simplify your annual tax filings.
The right software makes accounting easy. Look for software that:
- Syncs with your bank automatically.
- Matches transactions to invoices, bills and purchase orders.
- Can be accessed from your phone.
Recommended: QuickBooks has all the accounting features your small business will need.
Women in Business Tools and Resources
If you have a woman-owned business, many resources are available to help you concentrate on your business’s growth:
- Funding - (ie. grants, investors, loans)
- Events - (ie. conferences, meetups)
- Guides - (ie. business formation, personal growth)
- Support - (ie. advice, communities, business strategies)
Our information and tools will provide educational sources, allow you to connect with other women entrepreneurs, and help you manage your business with ease.
TRUiC has created video guides to support and reinforce our on-page guides. These videos help to visualize the ideas and lessons that you need to know to create and run a successful business.
How to Form a New York LLC Video Playlist
Business Ideas Video Playlist
Check out our growing library of small business videos on the TRUiC YouTube channel.
More Information
New York Foreign LLCs
Forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in New York, you will need to register as a foreign LLC. This can be done by mail.
Register as a Foreign LLC in New York
File Online with the New York Department of State
Fee: $250 payable to the Department of State (Nonrefundable)
How to Obtain a Certificate of Good Standing
A Certificate of Good Standing, known in New York as a Certificate of Status, verifies that your LLC was legally formed and has been properly maintained. Several instances where you might need to get one include:
- Seeking funding from banks or other lenders
- Forming your business as a foreign LLC in another state
- Obtaining or renewing specific business licenses or permits
You can order a New York LLC Certificate of Status by mail.
Order a Certificate of Good Standing
Request a Certificate by Mail from the Department of State
Fee: $25 payable to the Department of State (Nonrefundable)
Mail to:
New York State Department of State
Division of Corporations
One Commerce Plaza,
99 Washington Avenue
Albany, NY 12231
Dissolve Your New York LLC
If at any point in the future you no longer wish to conduct business with your New York LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your New York LLC, there are two broad steps:
- Close your business tax accounts
- File the New York Articles of Dissolution
When you are ready to dissolve your LLC, follow the steps in our New York LLC Dissolution Guide.
