How to File an LLC in NY
Starting a Limited Liability Company (LLC) in New York can be a great way to formalize your business, offering benefits such as liability protection and potential tax advantages. However, you don’t know exactly how to file an LLC in NY? New York has a specific process for forming an LLC, including a unique requirement to publish notices in local newspapers. This guide will walk you through the entire process using NY Business Express and explain how to comply with the publication requirement.
Step 1: Choose a Name for Your LLC
The first step in forming an LLC in New York is selecting a business name. Your LLC name must be unique and comply with New York state regulations. You can check name availability using the New York Department of State’s website or as part of your online filing process through NY Business Express (see below).
Key Points to Consider:
– The name must include “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.”
– It should not include words that might mislead the public (e.g., “bank,” “insurance,” “corporation”).
Step 2: Register with NY Business Express
New York State offers an online portal called NY Business Express to streamline the formation process. Here’s how to get started:
1. Create an Account:
– Go to the NY Business Express website.
– Register for an account if you don’t have one already.
2. Start Your Application:
– Once logged in, navigate to the LLC formation section.
– Begin the application process by providing the necessary details about your LLC, including the chosen name, address, and the names of the members.
Step 3: File the Articles of Organization
The Articles of Organization is the primary document required to form an LLC in New York.
1. Complete the Form:
– Fill out the Articles of Organization form online via NY Business Express.
– This form will ask for basic information about your LLC, such as the name, principal address, and the registered agent’s details.
2. Submit and Pay the Fee:
– Review the form for accuracy.
– Submit the form online and pay the filing fee (as of 2024, the fee is $200).
Once submitted, the Department of State will process your Articles of Organization. You will receive a confirmation and a filing receipt.
Step 4: Create an Operating Agreement
While not filed with the state, New York requires LLCs to have an operating agreement. This document outlines the ownership and operating procedures of the LLC.
**Key Elements of an Operating Agreement:**
– Member roles and responsibilities
– Voting rights
– Profit and loss distribution
– Management structure
Even single-member LLCs need to have an operating agreement.
Step 5: Comply with the Publication Requirement
New York requires newly formed LLCs to publish a notice of formation in two local newspapers for six consecutive weeks.
Here’s how to comply:
1. Determine the Newspapers:
– The notices must be published in two newspapers designated by the county clerk of the county where the LLC’s office is located. One newspaper must be a daily and the other a weekly publication.
2. Prepare the Notice:
– The notice should include the LLC’s name, date of formation, county location, and a statement that the Articles of Organization have been filed with the Department of State. Often, the newspaper you are working with will have a template you can use.
3. Publish the Notice:
– Contact the designated newspapers and arrange for the publication of your notice.
– The newspapers will provide affidavits of publication after the notice has been published for six weeks.
4. File Proof of Publication:
– Once you receive the affidavits from the newspapers, you must submit a Certificate of Publication along with the affidavits to the New York Department of State. The filing fee for the Certificate of Publication is $50.
Step 6: Obtain an EIN
An Employer Identification Number (EIN) is necessary for tax purposes and to open a business bank account. Make sure you go to the IRS website and not a scam website that is advertised through Google. You should not need to pay for your EIN.
**Steps to Obtain an EIN:**
– Visit the IRS website and apply online for an EIN.
– Provide the required information about your LLC.
Step 7: Additional Licenses and Permits
Depending on your business type and location, you may need additional licenses and permits. Check with local and state authorities to ensure compliance.
Conclusion
Forming an LLC in New York involves several steps, from choosing a name to complying with the publication requirement. By utilizing NY Business Express, you can streamline the filing process. Remember to adhere to all state requirements to ensure your LLC is legally compliant and ready to operate. With your LLC officially formed, you can focus on growing your business and achieving your entrepreneurial goals.
At Friendly Neighborhood Bookkeeping, we are here to answer your LLC and small business questions. All you need to do is contact us. We are happy to help.
Once you’ve filed, be careful to watch out for numerous scams that often attack new LLCs. For example, NY Certificate Service or Form 9710 US Corporate Classifications.
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