The legality of LLCs (limited liability companies) is a complex topic, especially when it comes to regulations that vary from state to state. As a business owner in Chicago, understanding LLC laws in New York can be especially daunting. To help clear up any confusion, let’s take a look into some of the frequently asked questions regarding LLCs in New York.

Registered Agents in New York

One of the most important questions a business owner starting or operating an LLC in New York should understand is- who is responsible for the company’s legal filings and paperwork? New York requires LLCs to maintain a registered agent, sometimes referred to as a statutory agent, who is responsible for monitoring the business for legal paperwork and lawsuits. Any correspondence directed to the registered agent is considered to have been made to the company itself. In addition, the registered agent must be a resident of New York State or a corporation lawfully capable of serving as a representative of the LLC.

When it comes to registering an LLC in New York, it is important to know the difference between a “true” and “legal” agent. A true agent is the company itself, and it can also serve as a legal agent for the business. A legal agent, on the other hand, is an individual or business entity that acts on behalf of the LLC.

When setting up an LLC in New York, the business owner must provide the name and address of the registered agent. The business must also ensure that the registered agent is available during standard business hours should any legal notifications be delivered.

Taxes on LLCs

In New York, LLCs must file taxes on their profits to the state. This means that the LLC must complete an NY State Business Corporation Franchise Tax Return annually to pay taxes on its profits.

Like many states, LLCs in New York must register for sales tax with the state’s Division of Taxation. Once the LLC has obtained a permit from the state it must collect and pay state and local sales taxes. The amount of taxes will vary depending on where the business is located, although the general rate across the state is 8.875%. LLCs located in qualifying New York City zones will have a sales tax rate of 8.875%. Additionally, other taxes such as corporate tax, business tax, personal income tax and payroll taxes may also be due.

Formation Requirements

When forming an LLC in New York, the business owner must file a Certificate of Formation with the New York Department of State. The application must include the name, purpose, and address of the LLC. Once the Certificate of Formation is accepted and approved, the LLC has formally become a business.

New York state regulations also require the LLC to appoint a registered agent and obtain a business certificate from the Secretary of State. The certificate, which must be kept on file at the business’s principle location, should include the LLC’s name, address, and purpose of the LLC.

Complying with various other regulations and guidelines is necessary to maintain the LLC’s validity in New York. For instance, LLCs in the state are expected to file an annual report, commonly referred to as the biennial statement, to keep the information on file with the secretary of state’s office up-to-date.

Filing Dissolution in New York

To dissolve an LLC in New York, the business must file a Certificate of Dissolution with the Secretary of State. To do this, the LLC must include some vital information, such as the date of dissolution, the name of the LLC, the LLC’s phone number, and a statement that approving the dissolution will not be contraindicated by the LLC’s Certificate of Formation.

Once the Certificate of Dissolution has been accepted and approved by the state, the LLC will officially be dissolved.

To summarize

Being aware of and complying with the regulations in New York for LLCs is essential for staying legally afloat. Whether you are looking to form, maintain, or dissolve an LLC in New York, gaining a solid understanding of the laws associated with the LLCs is a necessary step for business owners.

Topics:

LLC,

New York,

Regulations