Form a New York LLC

STEP 1: Name Your LLC

Choosing a company name is the first and most important step in starting your LLC. Be sure to choose a name that complies with New York naming requirements and is easily searchable by potential clients.

1. Follow the 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. Learn more about NY LLC naming guidelines here.
  • 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.

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 to see if your business name is available as a web domain. Even if you don't plan to make 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 an LLC

What is an LLC?

LLC is short for Limited Liability Company. It is a simple business structure that offers much more flexibility than a traditional corporation, while at the same time providing many of the same benefits. Learn more here.

Or you can 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. The name of the LLC can serve as 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 a name other than that of your LLC. Learn more here.

STEP 2: Choose a Registered Agent

In New York the Secretary of State acts as the registered agent for all New York LLCs by default.

This means the Secretary of State will forward the following to your LLCs principal address:

  • All formation documents
  • Any service of process your LLC gets

This principle address however, has to be published in a newspaper, therefore it is not private. To keep your information private and costs low, consider using a registered agent service.

Why would you use a Registered Agent Service in New York?

1. To reduce Publication costs

New York requires newly formed LLCs to publish a notice of formation in the local newspapers. This will cost around $1,500 or more if the principal address is in New York City. A registered agent service located outside the city will allow an LLC to use their address as the principal address, thus greatly reducing the cost of publication.

2. 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, thus protecting your personal privacy.

Learn more about New York 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: Northwest Registered Agent provides the first year of registered agent service free with LLC formation. Also, they are located in Albany, where typical newspaper publishing fees range from $80 - $100. Get started for $49 + State Fees

FAQ: Nominating a Registered Agent

Can I be my own Registered Agent?

Yes. You or anyone else in your company can serve as the registered agent for your LLC. Learn more here.

STEP 3: File Articles of Organization

To register your New York LLC, you will need to file the Articles of Organization with the State of New York. This can be done online or by mail.

When filing the Articles of Organization you will need to decide if your New York LLC will be member-managed or manager-managed. Read our article on the topic to learn more.

File the Articles of Organization

OPTION 1: File Online with the State of New York

File Online


OR


OPTION 2: File by Mail

Download Form


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 need to form a Foreign LLC.

FAQ: Filing LLC Documents

What is the processing time to form my New York LLC?

3 to 5 business days by mail. Receive approval instantly if you file online.

What is the difference between a domestic New York LLC 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 learn more here.

STEP 4: Publication Requirements

What is New York's 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

Download Form

New York City has notoriously high fees for newspaper publishing, ranging from $1,500 - $2,000. One way around this is to get a registered agent service located outside the city. This allows you to use their address as your LLC’s principal office.

Recommended: Northwest 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: 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 an 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? An operating agreement is an important document because it 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: Use our free Operating Agreement Tool to draft a customized operating agreement for your LLC.

FAQ: Creating an 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: Obtain an EIN

What is an EIN? The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to identify a business entity. It is essentially a social security number for the company.

Why do I need an EIN? An EIN 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. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online


OR


Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax:

(855) 641-6935


Fee: Free

FAQ: Getting an 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. Learn more here.

What tax structure should I choose for my 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 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 services.
Find out which is best for you.

Compare Services

State Taxes for your New York LLC

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.

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.

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, Learn more here.

Critical Steps After Forming your LLC

Business Banking for Personal Asset Protection

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 LLC is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business 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.

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.

Recommended: Compare business credit card offers at CreditCards.com. Learn more.

Accounting for your LLC

Even if you haven’t officially opened for business – it’s critical to get your books in order. 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.
Try QuickBooks FREE

New York Business Permits and Licenses

Do I need business licenses and permits?

To operate your LLC 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 business licenses and permits will vary depending on what sort of license you are seeking to obtain.

Find out how to obtain necessary licenses and permits for your business 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 licenses and permits.

Hiring Employees

If you plan to hire employees, stay compliant with the law by following these steps:

For more information visit New York’s Department of Labor

Recommended: A payroll service saves you time and makes it easier to follow these requirements.

Get 20% off payroll with ADP

FAQ: Hiring Employees

What is the minimum wage in New York?

The minimum wage in New York is $13.50 per hour.

How often do I need to pay employees?

For manual workers, a weekly payday is required. For clerical workers and others, payments must be made twice per month.

Insuring Your Business

Business insurance helps you manage risks and focus on growing your business. 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.

We understand that creating an LLC 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:

Maintain your New York LLC

Biennial Report

New York requires LLCs to file a biennial report with the New York Department of State. This form can be submitted online and is due every two years.

For more information, visit New York's Division of Corporations website.

File your Biennial Report


Fee: $9 (Nonrefundable)

Due Date: Due by the end of the Month in which the LLC was formed. If you formed an LLC on March 15th, then your biennial report is due every two years by March 31st.

Late Filings: New York will classify late-filing LLCs as “delinquent,” resulting in loss of certain rights and privileges. Your LLC could eventually be dissolved or revoked.

Annual Fee

New York State requires all LLCs to pay an annual filing fee. You must pay this fee in order for your LLC to remain in good standing with the state. This can be done by mail.

Pay Annual Filing Fee


Mail to:
State Processing Center
PO Box 4148
Binghamton , NY 13902

Fee Calculation: $25 for single-member LLCs. Fees for multi-member LLCs and LLPs are based on annual income and range from $25 to $4,500 (see income-bracket breakdown below).

Due Date: You must file form IT-204-LL within 30 days of its tax year.

Late Filing: $100 for late filings, plus interest the balance owed.

FAQ: More about the New York LLC Annual Filing Fee

What are the LLC income brackets for the Annual Fee?

  • $0 to not more than $100,000: $25 Annual Fee
  • $100,000 to not more than $250,000: $50 Annual Fee
  • $250,00 to not more than $500,000: $175 Annual Fee
  • $500,000 to not more than $1,000,000: $500 Annual Fee
  • $1,000,000 to not more than $5,000,000: $1,500 Annual Fee
  • $5,000,000 to not more than $25,000,000: $3,000 Annual Fee
  • $25,000,000 or greater: $4,500 Annual Fee

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 Certificate of Status by mail.

Order a Certificate of Good Standing

Request a Certificate by Mail from the Department of State

Request Online


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 LLC

If at any point in the future you no longer wish to conduct business with your 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 LLC, there are two broad steps:

  • Close your business tax accounts
  • File the Articles of Dissolution

When you are ready to dissolve your LLC, follow the steps in our New York LLC Dissolution Guide.

More Information

Report LLC Income

Most LLCs will need to report their income to the IRS each year using:

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: Northwest offers a reliable registered agent service and excellent customer support.

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

Download Form


Fee: $250 payable to the Department of State (Nonrefundable)

READ MORE ABOUT LLCS AND HOW TO RUN A BUSINESS