New York State LLC Filing Fee: Everything You Need to Know
The New York state LLC filing fee is the payment required to form a limited liability company in the state. 3 min read
Updated July 2, 2020:
LLC Annual Filing Fee
The New York state LLC filing fee is the payment required to form a limited liability company in the state. When filing tax forms for a New York business, you'll need to submit your SSN (Social Security Number). As a fraud deterrent mechanism, you can also use the EIN (employer ID number) in lieu of an SSN.
New York LLCs must pay an annual filing fee and submit the Limited Liability Company Filing Fee Payment Form (IT-204-LL). This form is required for all domestic or foreign LLCs that have income, loss, gain, or deduction to report from New York and that are taxed as disregarded entities. The form is not required for an LLC that opts for corporate taxation.
The filing fee is based on gross New York income from the immediate past tax year, with a default of $25 for companies with no gross income from New York for the year in question. An LLC treated as a disregarded entity is subject to a $25 filing fee; an LLC treated as a partnership for taxation owes a filing fee between $25 and $4,000 depending on prior year gross income.
The filing fee must be paid by the 15th of the third month after the tax year ends. No extension is available.
State Business Taxes and Fees
Most LLCs are treated as pass-through tax entities, which means that income is reported on each member's individual tax return. Thus, while the members are subject to income tax, the LLC itself is not. However, even pass-through LLCs in New York are subject to an annual filing fee if they opt for default treatment as a disregarded entity or partnership. LLCs who file Form 2553 with the IRS elect to be treated as corporations for tax purposes. These entities must file a separate corporate tax return. New York's corporate tax system is complex and allows corporations to be taxed in various ways.
State Employer Taxes
New York LLCs that have employees must withhold and pay employee income tax and employer taxes. First, fill out Form NYS-100 to register as an employer with the Department of Labor. Withholding taxes are based on the amount of your payroll and are filed with Form NYS-1. You'll likely also need to register for state unemployment insurance tax payments, which are managed by the DOL's Unemployment Insurance Division. This requires quarterly filing of Form NYS-45.
Sales and Use Taxes
If your business plans to sell items to customers who live in New York, you need to register with the Department of Finance as a sales tax vendor and collect and submit sales tax. You can do so at the NYS License Center website or submit Form DTF-17. After registering, you'll receive a certificate of authority for each of your operating locations. You'll need to file either quarterly or annually to pay sales tax depending on your sales amount.
Registration in Other States
If your New York LLC will conduct business in other states, you may need to register in those states depending on their specific laws. This may depend on whether you have a physical location, hire employees, or advertise in the state in question. In most cases, you'll need to get a certificate of authority for registration purposes.
Advantages of Forming a New York State LLC
New York LLCs have the following advantages:
- An easy registration system allows you to set up your company online in less than an hour.
- Limited liability, which means your personal assets are completely insulated from business liabilities, debt, and obligations.
- No complicated regulations, required annual meetings, or boards of directors.
- Little required paperwork.
- The ability to report income and losses of the corporation on your personal tax return.
Steps to Create a New York LLC
First, you'll need to choose a name for your LLC that is not already in use by another New York business. The name must include LLC, L.L.C., or Limited Liability Company. Make sure that the name does not include words or phrases that are prohibited by state law. Once you choose a name, you can apply to reserve it for up to 60 days.
If you need help with your New York state LLC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.