Frequently Asked Questions: How to Start an LLC in New York
Starting an LLC: Benefits for Entrepreneurs4 min read
An LLC (limited liability company) is a popular type of business entity for entrepreneurs since it protects them from personal liability for business debts and judgments and allows for both pass-through taxation and flexibility in management structures. Starting an LLC in New York can be especially beneficial due to the state's advantageous regulations. However, the process of starting an LLC involves multiple steps and can be confusing if you are unfamiliar with the nuances of business law. To help you make the classic startup dream of launching an LLC a reality, this article provides answers to some frequently asked questions about the process of forming an LLC in New York.
Do I need a lawyer to start an LLC in New York?
Though the process of forming an LLC in New York may seem daunting, it is actually possible for a business owner to form an LLC without a lawyer. When forming an LLC, you are required to file documents with the state of New York. However, since the documents themselves are relatively straightforward, it is possible to complete the process of forming an LLC without engaging the services of an attorney.
It is important to note, however, that there are potential risks and drawbacks in going without an attorney. For one, there is the risk of making a costly mistake. Additionally, business owners who are starting an LLC in New York should be familiar with the state laws and regulations governing the formation of an LLC, and may not be well-prepared to deal with any legal issues that arise.
Therefore, while it is possible to form an LLC without a lawyer, the issue should be carefully considered, as it can be beneficial to invest in legal support when forming an LLC. Consider hiring a lawyer for your LLC formation - especially if you are unfamiliar with business law and taxation practices.
When do I need to register my LLC in New York?
All businesses operating as a LLC in New York must register with the New York Department of State. This includes both foreign and domestic LLCs.
When filing the Articles of Organization for your LLC, the effective date of the LLC’s formation is the date on which the Articles of Organization are either mailed or delivered to the Secretary of State’s Office, and not the date on which the articles are signed. It is important to bear in mind that the LLC is not officially created until the Secretary of State records the filing.
The filing fee for forming an LLC in New York is $200. The filing must be completed before the LLC will be considered a legal entity, and all of the LLC’s business activities must be conducted under the LLC name and in accordance with New York laws.
How do I choose a name for my LLC in New York?
Choosing a name for your LLC is an important step in forming the LLC. A name should distinguish the LLC from other entities, so the name should be unique and not too similar to existing company names. The name should also contain the phrase “limited liability company" or "LLC” and should not contain any words prohibited by the Secretary of State’s office.
Additionally, it is important to ensure that the name does not interfere with any existing trademarks, and to note that an LLC established under a fictitious name must also register with the Secretary of State.
Once the selected name has been approved, the LLC is required to register for a Doing Business As (DBA) designation with the City Clerk’s office. Additionally, if the LLC will be conducting business in a county or municipality outside of New York City, it must also file a DBA with the County Clerk’s office of those counties in which business activities will occur.
What do I need to do after my LLC is formed in New York?
Once the LLC has been formed, the designated organizer should send a Notice of Formation to the county clerk in the county in which the LLC is organized. This notice must include the LLC’s name, business address, and a statement that the LLC was formed pursuant to the Limited Liability Company Law. Additionally, the LLC will need to obtain an Employer Identification Number, open a business bank account, and obtain the necessary licenses and regulations for the type of business activities to be performed by the LLC.
Final considerations
Forming an LLC in New York is a great way to establish a successful business without assuming personal liability for debts or judgments. Though the process of forming an LLC may seem complicated, it is possible to go through the process without engaging a lawyer, though obtaining legal support for this process can be beneficial and is highly recommended. Additionally, all LLCs must pre-register with the New York Department of State, must choose an appropriate name for their LLC, and must complete other post-formation steps.
Topics:
