Frequently Asked Questions About How to Make a New York LLC
Forming an LLC: An Effective Way to Protect Yourself as a Contractor, Consultant, or Freelancer3 min read
Whether you’re an independent contractor working in finance, a consultant providing digital marketing services, or a freelancer managing event organizers, forming a limited liability company (LLC) is an effective way to protect yourself from costly personal liabilities. LLCs are also growing increasingly popular as a way to ensure your business takes advantage of pass-through taxation.
No matter the reason for forming an LLC, If you’re considering forming an LLC in New York, you’ll need to understand the general requirements and the options available to you. Below are some commonly asked questions and answers to help you understand the process for forming your New York LLC.
What are the Advantages of a New York LLC?
Generally, there are several important advantages to forming an LLC in New York, including:
Limited liability protection for owners from debts or liabilities of the company;
Pass-through taxation benefits that help businesses avoid double taxation; and,
Assets are typically protected from judgments against the company.
What Steps Do I Need to Take When Creating a New York LLC?
The following are the general steps you need to take when forming a New York LLC:
Choose a name for your LLC and conduct a name search to check for availability.
Designate a registered agent in New York to receive official correspondence and notices as required by law.
Draft and file Articles of Organization with the New York Department of Decisions.
Draft an Operating Agreement, which sets the rules and regulations you and your partners agree on as members of the LLC.
Obtain the appropriate licenses and permits your business may need.
Open a business bank account for your LLC.
Finally, you may need to file for certain tax elections with the IRS.
What Are the Requirements for Naming an LLC in New York?
When naming your LLC in New York, your business name must contain “LLC” or “L.L.C.” The name of your LLC must also be distinguishable from other business names registered by the New York Department of State. Additionally, certain words may be restricted or require additional documentation to use.
Do I Have to Hold Meetings for my New York LLC?
No, you are not required to hold meetings for your New York LLC. However, it is wise to keep business activities organized and documented through regular corporation meetings and resolutions.
Do I Have to Draft an Operating Agreement for my New York LLC?
Yes, it is strongly advisable to draft an Operating Agreement for your New York LLC. This agreement is an internal document which sets the rules and regulations that bind the members of your LLC. The Operating Agreement is also the document that sets out each member’s ownership interest in the company and lays out procedures for decisions about additions or changes to the business.
Which Professional Services Should I Seek for Forming My New York LLC?
Forming an LLC involves a number of legal considerations. While you can complete most of the paperwork on your own, it is wise to get legal counsel to help with the formation of your LLC and the completion of required state and federal filings.
For New York LLCs, it is a good idea to consult an experienced business lawyer. Having a lawyer on your side can help ensure everything is in order and that none of the vital steps are overlooked. UpCounsel’s network of experienced lawyers have experience working with local regulations in New York, so you can rest assured that the formation of your LLC is in the best of hands.
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