How to Form an LLC in New York in 2021

 How-to-Form-LLC-New-York-2021

How to Form an LLC in New York in 2021

If you are interested in starting an LLC in the state of New York follow the below-mentioned steps for creating your own Limited Liability Company. Let’s start by looking at the six basic requirements to form an LLC in the state of New York :

Name Search for your LLC

You’ll need to choose a company name that complies with New York naming requirements, and do a namesearch on the State of New York website to make sure the name isn’t already taken. You should go ahead and register the URL for your business website and email as well.

new-york-llc-name-search

You can reserve a name for a period of 60 days by filing an Application for Reservation of Name with the New York Department of State Division of Corporations with a filing fee of $20.

Use the default statutory agent

In New York, the Secretary of State acts as the statutory agent for service of processor all New York LLCs by default. In this case, the Secretary of State will forward documents and service of process papers directly to your LLC’s principal address.

File the Articles of Organization

To register your New York LLC, you will need to file the Articles of Organization with the State of New York. This can be done online or by mail. You will need to mention whether your LLC will be member managed or manager managed. Member-managed means all members of the LLCmanage the company. This is good for small organizations, where everyone is involved in day-to-day operations. The second option is manager-managed, where individuals are appointed to manage the LLC.This is appropriate for larger organizations, where not everyone is involved in the day-to-day affairs of the business.

Publication Requirement

New York requires that within 120 days of formation all LLCs publish a copy of the Articles of Organization or a notice related to the formation of the LLC in two newspapers (one weekly and one daily).The newspapers must be approved by the local county clerk of the county you designate in your Articles of Organization. After the publication printer or publisher of every newspaper will provide you with an affidavit of publication. You must submit your Certificate of Publication along with your affidavits of publication to the New York Department of State, Division of Corporations. The fee to be paid for filing the Certificate of Publication is $50.

Create an Operating Agreement

You should also create an operating agreement to establish ownership terms, member roles, and operating procedures. This legal document ensures that all business owners are on the same page and reduces the risk of future conflict. A comprehensive operating agreement will further establish your LLC as a separate legal entity, however, it does not need to be filed with the state.

Obtain an EIN

Lastly, you’ll need to get an Employer Identification Number, or EIN, from the IRS. Also known as a Federal Tax Identification Number, your EIN is like a social security number for your LLC and is important for taxes and banking. IN’s are free of charge, and can be obtained from the IRS online or through the mail. And with that, you will have formed a New York LLC on your own. Keep in mind, however, that New York’s newspaper publication requirements can cost $1,500 or more if your LLCs principal address is in New York City. To reduce Publication costs entrepreneurs have developed various strategies. A registered agent service located outside the city allows an LLC to use the registered agent’s address as the principal address, which greatly reduces the cost of publication. There is also the added benefit of privacy because New York's LLC publication requirements mandate that your principal LLC address be publicly shared.

How much does it cost to form an LLC in New York?

For filing the Articles of Organization, the New York Department of State Division of Corporations charges fee of $200.

If you wish to reserve your LLC name prior to filing the Articles of Organization, It will cost $20 to file a name reservation application.

Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but will often cost you hundreds, if not thousands, of dollars in the process.

Hiring a professional registered agent service will allow you to use their address instead of yours which will protect your personal privacy. In addition, a hired registered agent helps with getting your reports filed on time, helps you stay organized by keeping your business mail separate and is available at all regular business hours to accept official mail and legal papers on your LLC’s behalf.

Related Post :

How To Start A LLC in Texas in 2021

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