The Limited Liability Company (LLC) is a popular business entity formation option among entrepreneurs because its hybrid business structure combines the features of a sole proprietorship (i.e flexible organization structure and simple formation) and a corporation (i.e. personal liability protection).
If you want to form an LLC in New York specifically, you’ll need to understand all the steps involved in the NY LLC formation process to ensure that your LLC is set up for success.
This article will guide you through the 6 step process for forming your NY LLC which includes picking a New York LLC name, appointing a registered agent, filing the New York Articles of Organization, and maintaining your NY LLC post-registration.
Although forming a New York LLC can be straightforward, it's possible to miss out on a detail that would make the process difficult. Because of this, we recommend following each step carefully to minimize any potential problems in the future.
The steps and supporting documents required to form your LLC are listed below:
The first step you'll need to take is to choose a name for your New York LLC. An LLC Name serves as a legal identifier for your business. New York laws require all business names to be unique and not deceptive. Check the Department of State website for name availability before filing the LLC formation document.
Check for NY LLC name availability here.
Aside from choosing a unique and easy-to-remember name that resonates with your customers, it must also comply with New York naming requirements. Because of this, you will need to note the following:
See the complete list of New York LLC naming requirements here.
Note: Choosing an LLC name similar to a trademark name might result in confusion and litigation in the future. Therefore, you should check if your business name is trademarked. Trademarks offer countrywide protection and may not be on the state database.
Check if your business name is trademarked here.
A registered agent (also called an Agent for Service of Process) is an individual or agency that a business appoints to receive legal documents (lawsuits, notices of license renewal, subpoenas, etc.) on behalf of its New York LLC.
Unlike other states, the New York Secretary of State is designated as the registered agent for all businesses by default (more info here). However, since the department’s services are limited, which might affect your business workflow, you can assign an individual or agency as your New York registered agent. To do this, you must file a Certificate of Change with the Secretary of State for a $30 fee.
New York laws require all additional registered agents (outside individual, LLC member, or authorized agency (i.e Stable)) to meet the following criteria:
The Articles of Organization (also called Articles of Formation) is a legal document that provides the government with vital information about your New York LLC. New York state laws require LLCs to file with the Department of State in person, online, or by mail. In this filing, you’ll need to present a business address, company name, etc.
For online filing, you can get started here.
For the in-person filling, you’ll have to submit the completed Articles of Organization with a filing fee of $200 to the Department of State office.
Need a business address to form your LLC? With Stable, we'll set you up with a permanent business address that you can use for your New York Articles of Organization, bank, taxes, and etc.
Note: It takes about 14 working days to issue the Certificate of Formation, however you can get an expedited filing for an extra fee that ranges from $25 to $150 depending on the processing time.
All business owners who want to form a NY LLC must publish their Articles of Organization in two newspapers within 120 days of formation, following New York state laws.
To meet the NY LLC publication requirements, please note the following:
This step is known as the "NY LLC publication requirement" (more info + instructions here).
Note: Failure to comply with the publication requirements will result in the suspension of your LLC's Authority to operate in New York.
An operating document outlines the structure of your New York LLC. It outlines the rights, power, duties, and obligations of members of an LLC. Members of an LLC are to agree on and sign the document within 90 days of filing the Articles of Organization.
The operating agreement you create will provide your New York LLC with legal cover and helps to settle internal disputes that may arise in the future.
Information you should include in the Operating Agreement:
New York LLCs with employees or more than one member must obtain the Employee Identification Number. It's a nine-digit number (like the social security number) assigned by the Internal Revenue Service for tax purposes.
You can apply for an EIN online on the IRS website. Alternatively, you can submit the EIN application form by mail or fax.
To summarize, you’ll need to pick a NY LLC name, appoint a registered agent, file the NY articles of organization, meet the NY Publication requirement, create an operating agreement, and get a NY EIN in order to form an LLC in New York. Failure to file the correct documents and remain compliant with the Department of State laws can risk your LLC's authority to operate.
At Stable, we provide virtual business addresses and mailboxes for LLCs, corporations, and more. You can use our permanent business addresses for your LLC formation documents, banking purposes, and communication with the IRS. We’ll also digitize all the business mail you receive at your address, so you can access it anywhere in the world.
Get started with Stable and get a virtual business address to use for your LLC in less than 3 minutes.
Disclaimer: Stable is not a legal or accounting firm; therefore, we cannot provide legal or tax advice. You should consult legal and tax professionals for advice on how to meet ongoing obligations that apply to you and your company.