How to Form an LLC in New York

Introduction

New York is one of the most popular states for forming an LLC, with more than 71,000 active LLCs and 620,000 active corporations. The process of forming an LLC in New York is relatively simple. Below are the basic steps you need to take to form and register your new business entity:

Decide on the structure of your business and appoint a registered agent.

One of the most important decisions you’ll make when forming your LLC is deciding whether to form a general or limited liability company. A general liability company has no restrictions on its owners or members, while a limited liability company restricts ownership to one member and limits their personal liability.

When deciding what type of structure is right for you, keep in mind that there are advantages and disadvantages to each option:

• General Limited Liability Company (GL): As mentioned above, the GL structure allows for more than one owner who can be held personally liable for business debts and obligations. The other major benefit this type provides is that it can be taxed as either an S-Corporation or C-Corporation (see below). If your business plans include hiring employees, running payroll deductions through credit cards from home/office merchants such as Amazon Payments or PayPal Express Checkout), then starting with an GL may make sense since it requires little more than filing some paperwork with New York State before being able to operate legally under state law.
• Limited Liability Company (LLC): The LLC was designed specifically so that people could enjoy both advantages—limited personal responsibility while still retaining control over their businesses’ operations while remaining flexible enough in terms of taxation methods—without having any real drawbacks beyond those associated with being taxed as either S-Corporation or C-Corporation

Choose a name for your LLC.

Choose a name for your LLC.

The name of your LLC must be distinguishable from other active business names in New York, or else it will not be approved by the state department of state. There’s no fixed rule on what makes a good name—it depends on several factors, such as the type of business you’re running and whether or not you’ll need to register trademarks or copyrights related to that business in the future. One thing is certain: New York does not approve names which are too similar to government agencies and public entities (for example, if we were trying to start up a new business called “New York City Department of Dog Parks,” our application would likely get rejected). Also note that words like “corporation” and “limited liability company” should not appear anywhere within your LLC’s official name (unless they’re part of an acronym).

File the Articles of Organization with the New York Department of State.

The final step in forming an LLC is to file your organization’s Articles of Organization. These are documents that must be filed with the New York Department of State—and they can be filed online, through the NYS Department of State website. The articles of organization state who owns the company and what type of business it is.

Once you have filled out this form, you will need to sign it by all owners listed on the form (even if some are not present). Once this is done, mail or hand-deliver your documents to:

New York Secretary of State

Citizenship Section – Corporations Bureau

One Commerce Plaza – 9th Floor

Albany, NY 12231

Create an Operating Agreement for your LLC.

An operating agreement is a contract between members of the LLC that defines their rights and responsibilities. It can be used to transfer ownership of the LLC, and it’s legally binding on all members of the entity.

A well-crafted operating agreement can help you avoid disputes among your members, or even lawsuits from outsiders. For example, if one member refuses to pay his or her share of an outstanding debt because he or she does not agree with other decisions made by other members, an operating agreement may help resolve these issues in a way that protects each member’s investment in the company.

Comply with other tax and regulatory requirements.

You will also need to comply with other tax and regulatory requirements. In addition to filing your own federal and state taxes, you must file a New York State tax return. The New York Department of Taxation and Finance administers the Business Tax program; all LLCs are required to pay annual taxes based on their gross receipts as well as self-employment taxes for members who work in the business more than half time. This information can be found on their website at www.tax.ny.gov/busf/biz_tax_registration_form_07152019a_companies_listing_guidebook__12132019a_.pdf

An LLC can be formed in New York by following these steps.

In New York, there are several ways to form an LLC. You can choose from one of the state’s approved forms or create your own. The process is not difficult and typically requires completing a few documents that incorporate information about your business and its owners.

An LLC provides legal protection and flexibility for its owners (called members). In addition to providing liability protection against personal liability claims, an LLC can help you avoid double taxation on profits and allow you to operate under your own rules if you so choose.

For most businesses, forming an LLC is a good choice because it offers maximum flexibility while providing some important protections without being as cumbersome as other business structures such as corporations or partnerships. If you want complete freedom over how your business is run but still want some level of legal protection for yourself and other members of the company, then forming an LLC may be right for you!

Conclusion

You’re on your way to becoming an LLC! You can check the status of your New York LLC by visiting the New York Department of State website.