Getting Started with an LLC in New York: A Guide (Short)
Doing business in New York requires proper legal filings and an understanding of what's expected from local regulations2 min read
Doing business in New York requires proper legal filings and an understanding of what's expected from local regulations. Forming an LLC, or limited liability company, is a popular way to protect the personal assets of the business owners and creditors. To get started on an LLC in New York, follow these steps.
The first step toward operating an LLC in New York is to choose a name for the company. The name must include “LLC” or “L.L.C.” at the end. The name must also be unique, and it can’t be the same as another company's name that’s registered in the state. To make sure the name is available, check the business entity database maintained by the New York Department of State.
Next, select a formed agent for the business, which can be a lawyer or an individual. This person is essentially the point of contact between the LLC and the state.
In New York, all LLCs must have a certificate of formation that’s filed with the NY Department of State. This form lists the basic information about your business, including the LLC’s legal name and address, as well as the name and address of the registered agent. You can file the form yourself or have a lawyer or other service provider do it on your behalf.
After filing the certificate of formation, the LLC should create an operating agreement, which describes the rules for operating the business. This document should include details about the rights and responsibilities of all parties involved in the business, such as owners and managers. Like the certificate of formation, an operating agreement is not required by law, but it’s wise to document these rules to ensure everyone is on the same page.
Depending on the nature of the LLC and the type of work it will perform, you may also need additional permits and licenses. For example, if the LLC will operate a restaurant, you’ll need a food service permit. If the LLC will provide professional services such as accounting or law, you may need a professional license or certification from the appropriate governing board.
When an LLC is formed in New York, it’s required to pay a biennial fee to the Department of State. This fee is in addition to any annual fees or taxes due to local, state, or federal authorities. The amount of the fee depends on the size and type of business; for instance, professional LLCs may be subject to higher fees than non-professional LLCs.
To sum up, to get started with an LLC in New York, you’ll need to pick a business name, select a registered agent, file a certificate of formation, create an operating agreement, obtain any necessary permits or licenses, and pay the biennial filing fee. For assistance in navigating the rules and regulations involved in setting up an LLC in New York, you may want to consult with an experienced business lawyer.