How to Start an LLC in
To start an LLC in New York you must file Articles of Organization with the New York Division of Corporations, State Records and Uniform Commercial Code, pay a $200 filing fee, and get an EIN from the IRS. The complete steps to forming a New York LLC are as follows:
- File New York LLC Articles of Organization
- Pay the Division of Corporations, State Records and Uniform Commercial Code $200
- Wait to receive your approval and filing receipt
- Get a Federal EIN tax ID for the LLC
- Create a New York LLC Operating Agreement
- Take these documents to the bank and get a New York LLC bank account
- Publish a formation notice in two local newspapers
- Submit a Certificate of Publication to the Department of State and pay the $50 fee
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New York LLC Articles of Organization free download. When you're done filling out the form, submit it to your state.
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How to File New York LLC Articles of OrganizationTo form a New York LLC, you file the LLC Articles of Organization in the following steps:
What is the Cost of a New York LLC?
The state filing fee for New York LLC Articles of Organization is $200. Hire Northwest, and your total, out-the-door cost is $425, including state fees.
Note: Within the first few months after formation, you’ll also have to pay for publishing a notice of your formation in local newspapers and for filing a Certificate of Publication.
How Much Does an LLC in New York Cost Each Year?
The Department of State requires New York LLCs to file a $9 Biennial Report every other year.Get Started
What are the New York LLC Taxes?
The New York personal net income tax rates for single filers are:
4.00%: $0 to $8,499
4.50%: $8,500 to $11,699
5.25%: $11,700 to $13,899
5.90%: $13,900 to $21,399
6.45%: $21,400 to $80,649
6.65%: $80,650 to $215,399
6.85%: $215,400 to $1,077,549
8.82%: $1,077,550 +
LLCs also pay the New York Department of Taxation and Finance a yearly fee based on their gross income. The minimum fee is $25. If your LLC is taxed as an S corporation, note that you’ll also be subject to New York’s corporation franchise tax. The minimum franchise tax is $25 for most corporations.
The New York state sales tax rate is 4%, but the average total sales tax rate is nearly double that at 7.936%. This is because cities and counties can add up to 4.75%, and specialty rates can increase the total tax even more.Get Started
What is a New York LLC Biennial Report?
Your New York LLC Biennial Report is a form you file every two years to update the Department of State on your LLC’s contact information. It’s fairly inexpensive ($9) and pretty easy to file online. The report is due in your anniversary month (the month you originally registered your business). If you forget to file, there’s no late fee, but your LLC’s status will become “delinquent.” No worries—we can help you avoid this annoying penalty. When you sign up for services at Northwest, we’ll send you compliance reminders to help make sure you don’t miss a filing. Better yet, cross this filing off your “to do” list entirely and hire us to file your Biennial Report for you.
Is a New York LLC Registered Agent Required?
Yes. In New York, the Secretary of State is automatically designated as the New York registered agent for all LLCs. And while that’s legally sufficient, there are a few major advantages to hiring Northwest to provide your New York LLC registered agent service.
- Albany address: When you hire Northwest, you can use our address throughout your Articles of Organization, potentially saving you hundreds of dollars on local newspaper publishing fees when you first form.
- Real time document scans: Your documents are our business—we accept, scan and send you notifications as we receive them. This way, your documents don’t languish in giant “to do” piles, and you get critical business notices fast. We work to ensure you can stay on top of your business wherever you are.
- Privacy, privacy, privacy: Using our address on your public documents helps protect your personal information from data sellers and solicitors. We value privacy and will never sell your information.
New York LLC Versus New York Corporation:
Starting a New York corporation typically costs less than starting a New York LLC. LLCs pay a flat $200 for Articles. Forming a corporation can be much less; filing fees start at $135 ($125 for the filing fee and $10 for the minimum tax on shares). If you have more than 200 shares, however, your formation costs increase.
Other costs are fairly similar for New York LLCs and corporations. Both entity types pay $9 for Biennial Reports. And no matter how your entity chooses to be taxed, your business will be subject to at least some entity-level state taxes, whether it’s the LLC fee, corporation franchise tax, or corporation business tax.
Costs aside, LLCs tend to be simpler to manage—no need to appoint directors, authorize stock, or hold annual meetings. Members can even manage the business themselves. Unless you really need a corporation (maybe you’re dreaming of Wall Street), a New York LLC is likely going to be the easier choice. Considering a corporation in the Empire State? Here’s information on New York incorporation.
Do I Need a Tax ID Number (EIN) for a New York LLC?
You’ll need a federal tax ID if you want to hire employees, be taxed as an S corporation, or file certain federal excise returns. Just about every bank will require you to have an EIN for your New York LLC. To fill out local tax filings or permit and license applications, you’ll often need an EIN as well. While you can sometimes use your personal social security number instead, why put your personal information at risk when you don’t have to? EINs are free and easy to get online. Or, you can hire Northwest Registered Agent to get you an EIN for your New York LLC.
Does a New York LLC Need a Business License?
New York doesn’t have a general, statewide business license, but counties and municipalities may have there own requirements. For example, LLCs engaging in business in Albany require an annual business license. Most commonly, you’ll find permits or licenses required for specific businesses or activities like driving a taxi or selling secondhand goods.
What are the Publishing Requirements for New York LLCs?
Section 206 of the NY LLC law requires LLCs to publish their Articles or a notice of formation in two local newspapers within 120 days of formation. You can’t choose any newspaper you like—the county clerk of the county where your LLC is located determines your newspapers. You’ll have to pay for publishing (and fees vary widely). After publication, you’ll submit a Certificate of Publication ($50) to the Department of State with affidavits of publication from the newspapers.
Attention NYC LLC Clients: Our registered agent office is in Albany. Why does this matter? Because New York LLCs are required to publish a formation notification in a local newspaper, an LLC formed in NYC will have a huge publication fee right off the bat if they use their NYC address on their formation documents. If you hire us, we’ll use our address on your formation documents and you can save hundreds by publishing a notification in an Albany paper (we include instructions in your online account). If you want to use your NYC address on all documents, you can simply file an amendment after you publish your LLC notification. It’s a straightforward process and our Corporate Guides™ are ready to help should you have any questions.
Our company motto is, “We’re just not annoying™” and we’ve gone to great lengths to ensure that our services satisfy and protect our clients.
Why Choose Northwest for your New York LLC?
We’re serious about our clients’ privacy. When you hire Northwest Registered Agent, we put our address as the point of contact on your formation documents to help protect against security breaches and data theft. We automatically protect our clients’ information, but we can easily list your addresses on public documents like every other business formation website if you’d like.
We don’t sell your information. When going through online sign-up forms, you’ll often notice little check boxes for “free” offers and services. These are third parties paying that company for a lead. We have absolutely zero income from selling leads. We’ve never had “trusted partners” or sold a lead, and never will.
We will be your registered agent. Most of our competition outsources this service. But as the official contact point of our clients’ business, we think it’s much too important a task to hand off to someone else.
We are the only national registered agent service that locally scans documents to clients in real time. That means we’ve minimized any chance of losing your documents and you’ll get any notifications we receive on your company’s behalf minutes after receipt.
Your LLC will come fully-equipped with everything you need. For no extra charge, we provide you with all the supporting documentation (operating agreement, membership certificates, resolutions, etc) you’ll need to take to a bank to open a business checking account.
We actually like what we do. Our company is a fun mix of computer nerds, paralegals, attorneys, and business formation know-it-alls. You’ll get to talk to these weirdos. Throughout the life of your company, we hope you’ll call, email or contact us however you like with questions and comments about your LLC. As weird as it sounds, we love to talk about the business entity formation process and the oddities of state bureaucracy and company maintenance.
We help clients work through awful business experiences every day. You’ve all seen the cliche mission statements and soulless “about us” pages. If you want to find out how we operate, you might enjoy our manifesto on how we think you shouldn’t run a business like an idiot.
So, in short (for those who are skipping around and didn’t read the big paragraphs above), we keep your information as private as possible; we’ll never sell your information to any third party; we don’t outsource our registered agent service; we scan documents from our local offices in real time within minutes of receipt; we don’t use document forwarding hubs; we don’t charge extra for the things we know you’ll need; and when you call you’ll actually talk to someone who knows what they’re talking about. That’s why we think you should hire us to form your New York LLC!
New York LLC Articles of Organization Requirements:
Your name must include “Limited Liability Company” or an abbreviation. Most businesses keep it simple with “LLC.” New York also has a long list of words and phrases you can’t use in your name—mostly words that suggest your business is something it isn’t (“corporation,” “state police,” etc.) or does something that requires licensing or approval you don’t have (“bank,” “finance,” “doctor,” etc.).
New York County
List the county where your LLC is located. This will determine which newspapers you’ll have to publish your notice of formation in. Tip: When you hire Northwest, you can list our Albany address and save hundreds compared to New York City.
Registered Agent and Office
While the Secretary of State is automatically designated as an agent for your LLC, you can (and should) list an additional address for copies of legal notifications to be sent—after all, the Secretary of State has to wade through thousands of documents and process servers. Tip: Hire Northwest as your registered agent and reap the benefits: years of experience, dedication to our clients, and of course, our Albany address.
If you file online, you’ll be asked if your LLC is managed by members or managers. Most LLCs are managed by members, but if you don’t plan to run the day-to-day operations, you can turn over decision-making power to one or more managers.
If you want push off the start date for your LLC for a bit (maybe you’re waiting for the next tax period to begin) you can list an effective date up to 90 days in the future. Tip: Most LLCs choose to start upon filing.
Want your business to continue indefinitely? Select “perpetual existence” on the online form. Prefer to put a self-destruct timer on your business? You can list an end date for your New York LLC in your Articles. Tip: Most LLCs are perpetual.
If filing online, you also have to option to include a clause stating that the LLC will compensate members or managers for expenses (like attorney fees) incurred in connection to any sort of claim, lawsuit, or proceeding against the LLC.
New York LLC Organizer
Your organizer is the person who signs and submits your Articles of Organization. The organizer doesn’t have to be a member, manager, or anyone connected to the LLC. Tip: We’ll be your organizer when your hire Northwest.