Creating an LLC in New York: Starting Your Own Business
When it comes to starting your own business, creating a Limited Liability Company (LLC) is often the best choice3 min read
When it comes to starting your own business, creating a Limited Liability Company (LLC) is often the best choice. An LLC is a US business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. This structure provides founders the opportunity to launch and manage their business in a considerably more flexible way, while also protecting their personal assets from the debts or liabilities of the business itself. Many small business owners choose to form an LLC in order to take advantage of these benefits.
If you are based in New York and looking to start an LLC, the process is fairly straightforward, though it may be helpful to work with an attorney who is familiar with the particular laws of your state. For this article, we will focus on the steps involved in registering an LLC in New York. By providing an overview of the process, applicable regulations, and additional resources, we hope to make the task of registering your LLC a little easier and thus set your startup up for success in the long run.
Steps to Register an LLC in New York
The process of starting an LLC in New York is relatively simple but there are a few things to keep in mind as you get started.
Step 1: Name Your LLC
The first step is to come up with a name for your LLC. Your LLC name must be recognizable from other business entities and indicating the type of business structure. Additionally, the name cannot include any restricted words (such as Bank, Attorney or University) unless you have authorization to use them. The name also must not contain any offensive language.
Step 2: Appoint a Registered Agent
LLCs are required to appoint a registered agent in the state of New York. This agent is responsible for receiving any legal documents (such as tax forms) and other official correspondence. The registered agent must have a physical address in the state and be available during normal business hours to receive these documents.
Step 3: File the Articles of Organization
The next step is to file the Articles of Organization with the New York Department of State. These Articles should contain basic information about the LLC, such as the name and address of the business, the purpose of the LLC, the names and addresses of the members and managers, and the name and address of the registered agent.
Step 4: Obtain an EIN (Employer Identification Number)
Once your Articles of Organization have been filed, you will need to obtain an Employer Identification Number (EIN) from the IRS. An EIN is essentially a nine-digit number that is used to identify a business entity for tax purposes.
Step 5: Create an Operating Agreement
After you have obtained your EIN, you should also draft an Operating Agreement for your LLC. This document outlines the ownership and management powers and lays out the responsibilities of each member of the LLC. It is not required by the state but can be helpful in setting the stage for a successful LLC.
Additional Resources
In addition to the steps outlined above, there are a number of additional resources available to those looking to start an LLC in New York. Start by visiting the New York State Department of State's website, which provides a helpful guide to forming an LLC and includes a checklist for ensuring the paperwork is properly completed. Additionally, the Small Business Administration's website offers an online tutorial on forming an LLC.
Finally, UpCounsel provides an array of legal services for small businesses and entrepreneurs, including assistance in forming an LLC in New York. As the leading business attorney marketplace, UpCounsel has access to experienced legal professionals with exceptional skills and knowledge of the local regulations.
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