New York LLC: Everything You Need to Know
With a New York LLC, New York law allows you to complete your filing online, and you can start your business in as little as an hour.3 min read
2. Naming Your LLC
3. File Articles of Organization
4. Registered Agent
5. Operating Agreement
6. Publication Requirements
7. Employee Identification Number
New York LLC
With a New York LLC, New York law allows you to complete your filing online, and you can start your business in as little as an hour.
An LLC is a great option because any obligations or debts incurred on behalf of the company do not extend to you personally. In addition, LLCs permit greater flexibility than corporate entities. For instance, LLCs do not require annual meetings or the creation of a board of directors as one would under a corporate system.
Moreover, LLCs are easy to manage, and you can set up your own rules and guidelines in the form of operating agreements. Tax filing is an easier process as well, and you can report LLC business income on your personal tax returns, otherwise, known as pass-through taxation.
Naming Your LLC
When naming your LLC, there are a few steps you need to take before you file.
- Research the Name: Before filing your official name, be sure it is not already taken by another company. You can check the New York Secretary of State database to find out if your intended name is already in use. All names should end with “LLC” or “L.L.C.”
- Be Aware of Restricted Words: You cannot use words such as “Bank,” “University,” or “Attorney.” Such names require additional filings, and you may need additional licensure if your LLC pertains to law or medicine.
- Be Aware of Prohibited Words: Words such as “Secret Service” or “Treasury” are strictly forbidden when considering an LLC name. Further, names associating your entity with government agencies are restricted.
You may also reserve a chosen name for two months as you file an application. A separate application called the Application for Reservation of Name must be filed with the New York Division of Corporations. In addition, choose a domain name, even if you do not intend to have a website. If you intend to establish a website, choose a professional email.
Articles of Organization create your organization, and you must file them with the Division of Corporations. They must include such info as the county where you intend to do business, company name, and the address.
All LLCs must have an established address, but it can be your personal address if you intend to operate your LLC from your home. You may also choose any address, but it should not be a P.O. Box. The articles can be filed online or mail, and you must pay a $200 fee.
All LLCs in New York should have what is known as a registered agent. The registered agent is responsible for filing annual reports and accepting legal documents on behalf of the company. The registered agent can be yourself, anyone with the company, or an appointed representative from outside your organization with a physical street address in New York.
An operating agreement is mandatory in New York. It should be filed before, during, or within days after the Articles of Organization is filed. An operating agreement establishes the rights, duties, and responsibilities of all members. Further, it outlines the overall management structure of the organization.
With that, the operating agreement is not filed with the Division of Corporations and is simply an internal document that the LLC adheres to.
New York is one of the few states that mandate new LLCs to publish their debut in local newspapers. You must publish your LLC daily in one paper and weekly in another for six weeks straight.
Law still mandates the requirement, and you must announce your LLC in newspaper within 120 days of official filing.
Employee Identification Number
Lastly, you should obtain an employer identification number (EIN), which is a number given to you by the IRS to identify your business. An EIN is needed when filing your federal and state taxes. Additionally, banks may need your EIN so you can open a business checking account. Get a free EIN from the IRS by applying online.
You must obtain an EIN even if you have no other employees under a multi-member LLC. Single-member LLCs must obtain one if that business intends to hire employees, or if it’s taxed in the same manner as a corporation.
To learn more about New York LLC guidelines, post your legal need on UpCounsel. We retain a pool of top lawyers to guide you through New York business laws. You can rely on our expertise in New York tax law so your business can use tax laws to your advantage as you grow your business operations.