How to Get an LLC – the Complete Guide
Since the establishment of the very first LLC back in 1977, it has seen an explosive and continuous rise in popularity3 min read
Since the establishment of the very first LLC back in 1977, it has seen an explosive and continuous rise in popularity. LLC stands for Limited Liability Company and is a hybrid structure that combines qualities of both a corporation and a partnership. It gives a business the legal and liability protection that a corporation has while still giving it the flexibility of a partnership. In New York, filing for an LLC with the Secretary of State is a straightforward process, but it's always a good idea to consult a qualified lawyer to ensure you are in full compliance with laws and regulations.
Assuming no other businesses in New York use the same name and the LLC has all the required documentation, the filing process goes as follows:
First, you must choose a name for the LLC and the name must include the words “LLC”, “Limited”, or “Company” to announce there’s an LLC structure. Additionally, the name cannot be the same as any other business name registered with the Secretary of State. To ensure the name you want isn’t taken, you can search the New York Business Entity database.
Once you’ve chosen a name, you can file the Articles of Organization with the Department of State (DOS). These documents list the name of the LLC, its purpose, its duration, the name and address of the registered agent, and the names and signature of the members. You can either send a completed form to DOS or file the document online through the DOS Online Filing System. The filing fee is $200 and it can be paid using the online filing system.
After filing the Articles of Organization, you must appoint a registered agent. The registered agent is responsible for receiving legal papers if the LLC is ever sued. In New York, a registered agent can be anyone with a real street address in the state and is available during normal business hours. Additionally, the LLC must always maintain a registered office in the state.
To keep the company in compliance with state laws, every New York LLC must:
• Hold an annual meeting or appoint an agent in charge of creating an annual minutes book;
• Have the company name listed on all the LLC’s written business documents and contracts, including website, letterhead, invoices, etc.;
• Maintain a separate bank account for the LLC and keep financial records such as accounts receivable, accounts payable, and other records needed to file annual taxes with the Internal Revenue Service.
The final step of creating an LLC in New York is to obtain all the necessary business permits or licenses. Depending on the nature of the business, the LLC may need a sales tax ID, zoning permits, liquor license, business license, or one or more of various other permits and licenses. And if the LLC will have employees, employers’ identification and social security numbers will need to be obtained.
Before starting your LLC in New York, it’s always a good idea to turns to experienced legal counsels who understand the local regulations. UpCounsel’s network of experienced lawyers provide high quality, cost-effective legal services. UpCounsel can assist in setting up an LLC, filing legal paperwork, obtaining business permits or licenses, and helping the LLC comply with the local, state, federal, and/or issues related to formation of an LLC, filing legal paperwork, obtaining business permits or licenses, and/or helping the LLC comply with the local, state, federal.
Topics:
