New York LLC Fees: Everything You Need to Know
New York LLC fees will vary based on the documents you are filing, or where you are in the process of staring your limited liability company.3 min read
2. Why Form an LLC?
3. Naming your LLC
4. Filing Requirements
5. Ongoing Legal Obligations
6. Taxes and Regulatory Requirements
There are a number of fees you'll pay throughout the LLC process in New York:
- $200 for Articles of Organization.
- $50 for Certificate of Publication.
- $75 for two-day processing.
- $125 for same-day processing.
- $200 for two-hour processing.
- $10 for a certified copy of your filed articles of organization.
- Fees for publishing are around $1,300.
Why Form an LLC?
Forming an LLC in New York is easy and inexpensive. Members can be people or other companies, even foreign entities. An LLC is flexible and offers benefits like limited liability for its members. LLCs are favored because they combine benefits from both corporations and limited liability partnerships.
Naming your LLC
Like other states, New York requires that a LLC name have LLC, L.L.C. or "Limited Liability Company" in it. New York's Limited Liability Company Law Section 204 sets forth prohibited or restricted phrases. If you want to add words like "attorney" or "doctor," you need to file additional paperwork and show proof of licensing.
Do a name search on the New York Department of State website to verify that the name you want is available. Be prepared to have backup name ideas in case the name you want is taken.
Articles of organization must be filed with the New York Department of State. It typically takes six to seven weeks to get through the LLC formation process in New York. If you need assistance with your articles of organization, the New York Department of State's website offers sample forms.
Businesses need to either publish the articles of organization or a notice related to the LLC's formation. A county clerk's office determines where you need to publish the notice, and you may need to call and speak to someone who will advise on what newspapers to use.
The notice must run in two newspapers consecutivelyfor six weeks. Once the notice has run, you'll receive an affidavit of publication, which needs to be submitted to the Department of State with a certificate of publication. You have up until 120 days after filing the articles of organization to get the notice published.
LLCs are required to name the State of New York as the registered agent. The state's services are limited, so you are allowed to name an additional registered agent.
Businesses with more than one member are required to prepare an operating agreement. It also discusses how the LLC will distribute profits and losses, how it will be managed, and what is necessary to dissolve it.
Ongoing Legal Obligations
In New York, LLCs must file a biennial statement every two years. The Department of State will automatically send the form.
LLCs in New York don't have to file annual reports, but they are obligated to pay an annual fee. The filing fee amount differs, as it's based on your LLC's gross income in New York from the prior year. If you have no income, losses, etc., you don't need to pay a filing fee. If you do, be advised it can range from around $25 to $4,500. You must file the form within 60 days of your LLC's tax year.
New York also requires that LLCs that have income in the state must pay an annual filing fee of $100 multiplied by all the members. The minimum is $500 and the maximum is $25,000. If you're a single-member LLC, it's $100.
To show that your LLC was legally formed, you will need a certificate of good standing. You may need this to open a bank account, request funding, register your business as a foreign LLC elsewhere, or file for specialized business permits and licenses.
Taxes and Regulatory Requirements
Do your research and verify that you have all the licenses and permits needed based on your business type. Permit requirements can vary by area, so you need to check with your closest county clerk. The Small Business Administration (SBA) is another good resource if you need assistance to verify hat you have the proper licenses and permits.
If your LLC has two or more members, you need to obtain an employer identification number (EIN) from the IRS. It's like a Social Security number for the LLC, and it's required when filing federal and state taxes.
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