Starting a business often starts with forming a limited liability company, or LLC. An LLC is beneficial because it provides the legal protection of corporate entities, allowing owners to protect their personal assets. While the process of creating an LLC is the same across the country, states may impose different regulations. In New York, there are a few key items to consider when creating an LLC.

Creating an LLC in New York takes a bit of work. There are government forms to fill out, fees to pay, and procedures to follow. It may help to speak to a business lawyer who can provide expert counsel. Experienced lawyers can provide not only legal advice, but also insight into potential opportunities and pitfalls business owners may encounter.

It is important to be aware of the most important considerations before forming an LLC in New York. Here a five things to keep in mind:

Choose a name

The first step in creating an LLC is selecting an appropriate name. A business name must include the words “Limited,” “Ltd,” “LLC” or “LLLP,” and it cannot include words that could confuse it with a government agency or be too similar to an existing business.

It is important to make sure the desired name is not already taken. The New York Department of State offers availability searches that provide feedback on whether a business name can be used.

Appoint a registered agent

As part of setting up an LLC in New York, business owners must appoint a registered agent. A registered agent is typically a person who will receive legal paperwork on behalf of the company and serve as the primary contact if the business is sued. A registered agent may also be a business entity that specializes in this service. It is important to make sure the individual or entity chosen to fill this role is reliable and can handle the legal paperwork.

File Articles of Organization

Articles of Organization must be filed with the New York Department of State to officially create an LLC. This document includes the LLC’s name, name and address of the registered agent, and other information. A business lawyer can help with this portion of the process.

Create an operating agreement

One of the most important documents LLCs need is an operating agreement. This agreement lays out the terms of the organization, including the owners’ percentage of ownership, duties, and some legal guidelines. The document also discusses key business decisions and processes.

Consider taxes and licenses

LLCs must be registered with the New York Internal Revenue Service. Depending on the type of business, there may also be certain licenses or permits required. A business lawyer can provide assistance in this area.

When setting up an LLC in New York, it is important to keep these five considerations in mind. Consulting with an experienced business lawyer can go a long way in making sure all the paperwork and procedures are done correctly.

Topics: