When filing a New York LLC, a business name should be created and registered to the New York Secretary of State. This business name should be in observance with the prerequisites of the state.
The actual New York LLC name should contain ‘Limited Liability Company’, ‘L.L.C.’ or ‘LLC’. More importantly, the LLC name should be unique or must not closely resemble any existing business entity legally registered in the New York Secretary of State Office.
To verify if the name is valid and unused, go to the business name database tool of the Division of Corporations of the New York Department of State.
If the name is still available, you may file for an Application for Reservation of Name at the Division of Corporations. Filing this document allows you to reserve the name for 60 days. A filing fee of $20 is required and the reservation should be done through postal mail.
When starting an LLC in New York, a Registered Agent must also be hired. In New York, the primary Registered Agent should be the Department of State.
An additional agent, whether a New York resident or a domestic or foreign business entity can also be hired to act as a NY LLC Registered Agent. As this is a statutory requirement, compliance is required. You can hire an additional agent through the help of Rocket Lawyer’s Registered Agent Services.
To register an LLC in New York, an Articles of Organization must be filed to the Division of Corporations of the New York Department of State.
As you accomplish the New York LLC filing, the following information is required: name of the LLC, county where the LLC will be located, as well as a New York address where service of process and other legal documentations will be mailed. Filing can be done through postal application or through the online filing system.
Filing Fee of the LLC: $200 payable to the State of New York
You must obtain your own LLC EIN if the organization has more than one member. This is required even if you have no employees in your business.
If you only have one member in your LLC, you should still obtain a New York EIN especially if you’re hiring employees in the future or you opt to have the organization taxed as a Corporation. You can obtain your Employer Identification Number through online filing at the IRS website. Your EIN is free.
By opening a business bank account you will be able to keep your personal and New York LLC finances separate. This way, you can ensure that all your personal assets will not be mixed up with your business assets. If that happens, it would be very difficult to determine whether you are making or losing money as a business.
To find out which is the best bank to open an account with, do some research. You can use the bank you keep your personal account with, just be sure to keep transactions 100% separate.
After you have accomplished the steps above, you are now a legal New York LLC. The following steps below are additional required and recommended ones to enable you to legally operate and conduct business. The recommended ones on this list are provided to ensure that you succeed in operations.
As statistics show, more than half of small businesses that start do not survive by the end of five years of operations. While there are many factors that could be attributed to this failure, unpreparedness can be one of them.
For this reason, when you’re starting a New York business, it is imperative to write a business plan. More than being a document that states business goals and the plan of action to achieve these goals, a business plan is the compass that points your New York LLC in the right direction to growth and progress.
When incorporating an LLC in New York, there are some New York LLC tax obligations that you must completely fulfill.
Since these tax reports are crucial to your New York LLC, you must carefully go through each tax type, identify all the requirements, and complete it in a timely fashion to avoid any trouble with the IRS or the state government. Our guide on New York Business Taxes should give you an idea of common tax types applicable to businesses.
Another task that needs your immediate attention when starting an LLC in New York is the matter of New York business licenses and permits. This requirements allow you to operate legally within the state, so every single New York business license should be obtained.
Also, it ensures that you are in good standing with the state and continue to do so in the duration of your business operations. You can refer to our New York Business Licenses and Regulations guide for a number of helpful resources in completing this task.
When starting a business, it is crucial to pick the right people to be part of the team. More than the applicants’ job qualifications and skills, attitude and the flexibility to adapt to the organization’s culture should also be taken into consequence.
As an LLC in New York, you must keep in mind to create a solid hiring criteria and hire the most appropriate people. Below are a few recommended readings that can point you in the right direction when hiring employees.
An LLC Operating Agreement is an integral part to the smooth operations of an LLC. More than defining the financial and managerial relationships between owners of the LLC, an Operating Agreement protects your LLC’s limited liability status and overrides state-default rules, which may not be applicable to your LLC at all.
You can create your LLC’s own document now with the help of Rocket Lawyer’s Operating Agreement sample. Using this document, you can fully customize it to fit your specific business’ needs.
Before you start marketing your New York LLC, it is important to have a business website. This will give you added credibility and show future customers what you stand for.
Rather than hiring a professional designer, you can build a custom WordPress website by yourself with minimal tech skills. Learn how from start to finish through this simple setup guide.
Please be advised that this guide is only an informational article meant to provide general information on forming a New York LLC. This should not be taken as a legal advice or a document. Always seek the expert advice of a business lawyer for the legalities involved in forming a New York LLC or when starting an LLC in New York.