When it comes to starting a business, know your legal structure is one of the most important steps. Wherever you are located in the United States, understanding the legal system you're operating under is a must. To that end, let’s take a look at how to get started with an LLC and Inc in New York.

The first step when it comes to filing a LLC or Inc in New York is to decide which type of business entity you want, and which state you would like to register in. Choosing between an LLC and Inc depends on multiple factors, including the owner's personal and financial goals, the structure of the company they are building, and legalities that might affect the company.

An LLC, or limited liability company, is a type of structure that shields its owners from being held personally liable for business debt or liabilities. An Inc, or incorporated business, is a more formal type of business entity and offers more power and protection than an LLC. This type of business would be most beneficial for those looking to have more control and ownership of their business, as well as more responsibility and legal action.

Once you have a good idea of which entity is best for you business, the next step is to find and hire counsel who understands local regulations and is familiar with the LLC and Inc options in New York.

When you’re choosing counsel, look for UpCounsel’s network of experienced lawyers with an average of 14 years of experience. All of our attorney profiles display client ratings and reviews that highlight and explain their recent work. UPCounsel’s briefs summarize all of the essential information related to each case. You can also access high quality attorneys on demand. A lawyer from UpCounsel has met the qualifications to be part of the network and has expertise in business law.

The next step will be filing the articles of organization. This document will legally create your business structure. The articles of organization will provide information about your LLC, such as the name of the LLC, its purpose, the names of the managing members, and the address of the company.

It’s also important to obtain an Employer Identification Number (EIN). An EIN is a number that identifies your business and it will also be used when filing taxes and to open business bank accounts.

For corporations, the process is slightly different. This structure requires more paperwork and filings as compared to an LLC. When filing for an Inc, you will need to file articles of incorporation, which will be done with the Department of State. The articles should include the name and purpose of the corporation, the corporate address, the number of authorized shares and the name and address of the Inc’s registered agent.

The registered agent is an individual or entity who will be responsible for receiving and sending legal documents on behalf of the corporation. It’s important to be sure that the registered agent’s address is a physical address in New York.

The last step for both LLCs and Incs is to follow the maintenance requirements. This includes filing annual documents, obtaining professional licenses, and other state and local laws. This will vary from state to state, but should be done to ensure that the business remains in compliance.

Getting started with an LLC or Inc in New York can be a daunting task, however with the right counsel, understanding of the legal system and the paperwork and regulations that come with each entity, you can set up and operate your business legally and smoothly.

Topics:

LLC,

Inc,

New York