Script: How to Form an LLC in New York
If you are interested in starting an LLC in the Empire State, you are not alone.
New York has the 3rd largest economy in the country and one of the highest rates of newly
formed LLCs.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own Limited Liability
Company in the state of New York.
Let’s start by looking at the six basic requirements to form an LLC in New York on
your own:
Name your LLC.
You’ll need to choose a company name that complies with New York naming requirements,
and do a name search 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.
Use the default statutory agent.
In New York, the Secretary of State acts as the statutory agent for service of process
for 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 state whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage 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 publication, the printer or publisher of each 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.
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.
EIN’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:
New York's LLC publication requirements mandate that your principal LLC address be publicly
shared.
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.
Now that you have seen the different requirements and ways you can form an LLC in New York,
visit our site and take some time to research your options and establish a solid foundation
for your business activities.
HowtostartanLLC.com has full details on how to form an llc in NY and the full publication
guidelines.
We also offer a host of free templates and tools to help accelerate your small business,
from operating agreements to business plans- all free of charge.
Visit us at HowtostartanLLC.com