When thinking about the best legal structure for your business, creating a Limited Liability Corporation (LLC) in New York may be the right choice. Although there is no “one size fits all” solution, an LLC is often preferable to a Sole Proprietorship or Partnership because it keeps personal assets separate from business assets and provides personalized limited liability protection with integrated tax advantages. If this sounds appealing, then you are likely ready to start setting up your LLC in New York.

In order to successfully create an LLC in the state of New York, the best plan of action is to consult with a legal expert who understands the local regulations. As a resident of New York state, you are likely well-aware that local regulations can be complex and frustratingly specific. Working with an attorney or legal team that has years of experience handling LLC formations in your specific state can ensure that you are getting the best relevant advice and investing in an LLC structure that will protect you and your business in the long run.

Fortunately, there are a number of excellent options for finding legal counsel in New York. UpCounsel is a great place to start your search if you are looking for a one-time consult or an entire freelance legal team to handle this important business structure. UpCounsel’s network is made up of experienced lawyers and can provide you with high quality, cost-effective legal services. In addition, you will be able to access a library of attorney profiles that includes client ratings and reviews of their recent work.

Once you have identified the right legal team for your LLC formation, it is important to understand the different steps that are necessary to officially establish your limited liability corporation in New York. The steps you will need to take are as follows:

Step One: Choose a Business Name

When picking the name for your LLC in New York, it is important to follow the rules set forth in the New York Limited Liability Company Law. For instance, your business name must include the phrase “Limited Liability Company” or one of its abbreviations. Unique rules apply to names ending with words such as “Association” and “Corporation.” Further, the use of certain language is reserved for businesses that have already received approval from the New York State Department of Financial Services (DFS) and any business name that includes “bank” cannot be registered with the state unless it has been pre-approved by the DFS.

It is also important to make sure that the name you pick is not already in use by another business registered with the New York Secretary of State. One way to check if the business name is available is to search the Business Records website. It is recommended that you conduct your search using a non-exact match because the system may reject your desired name even if another business is not already using it.

Step Two: Appoint a Registered Agent

All LLCs in New York must appoint a registered agent. This person is responsible for receiving service of process on behalf of the LLC in the event of a legal dispute, tax audit, or other legal matter. The appointed registered agent must have a physical street address in New York and must consent to become the registered agent in writing. When you file the Articles of Organization to form your LLC, you will need to include information about the registered agent.

Step Three: File the Articles of Organization

Once you have chosen a name for your LLC and identified the registered agent, it is time to officially form your limited liablity corporation by filing a document called the “Articles of Organization” with the New York Department of State. This documents must include the name and address of the LLC’s registered agent as well as additional information such as the LLC’s purpose and the name and address of each member of the LLC. Some LLCs may also need to attach an assumption of name form to the Articles of Organization, depending on the words included in its desired name.

Step Four: Create an Operating Agreement

Creating an operating agreement is an important step in forming an LLC. This document is a legally-binding agreement between the members of the LLC and outlines the company’s operations, protocols and rules. Having a clearly written operating agreement helps to avoid disputes among the members of the LLC and can simplify a lot of headache later down the road.

Step Five: Register for Taxes

LLCs must register with the New York Department of Taxation and Finance to pay taxes and obtain a Certificate of Authority. Depending on the type of business you are operating, you may also need to get additional permits and licenses from the government. For instance, restaurants and museums will need state and health related permits in addition to the Certificate of Authority.

Step Six: Open a Bank Account

Lastly, you will need to open a business bank account for your LLC. This will allow you to manage the company’s funds separately from your personal accounts and establish a professional presence for the business.

Creating an LLC in New York requires careful planning and the ability to navigate the state’s complex regulations. Using the right teams of business lawyers and legal counsel can help to ensure that you are setting up your LLC correctly and protect you and your business in the long run.



Limited Liability Corporation,

New York