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Starting an LLC in New York can significantly your business growth, thanks to its large population and its business-friendly environment.

It's important to be aware of the essential aspects involved in creating an LLC in New York. There are many necessary forms and strict deadlines that must be met to avoid severe penalties. To help you navigate this tricky process, we've outlined six key steps for successfully starting an LLC in NY.

What are the benefits of starting an LLC in New York?

Starting an LLC in New York has at least three benefits. First, having an LLC provides limited liability to members. 

  • First, having an LLC provides limited liability to members. 
  • Members can also choose to have their LLC operate as manager-managed or member-managed, with different effects on who operates the LLC. 
  • Starting an LLC in New York requires less paperwork than other business entities. This can allow you to start your LLC in New York with fewer issues than in other states.
  • How to start an LLC in New York

    There are six steps to start an LLC in New York. 

    Step 1: Choose Your LLC Name

    The first step to starting an LLC in New York is to choose your LLC name. There are three requirements for naming your LLC in the state of New York. 

    First, your LLC name must include:

  • LLC
  • L.L.C.
  • Limited Liability Company
  • Second, your LLC name will need to be available and unique from other business entity names in New York. To check if your business name is available, you’ll go to the Divisions of Corporations within the Department of State and do a name search.

    Third, to make sure your LLC name doesn’t have any issues, there are some phrases and words which you can’t use or may need additional paperwork to have.

    You can’t use words that imply government offices and units, like:

  • Treasury
  • State Department
  • FBI
  • CIA
  • Village
  • City
  • You will also need professional licensing and additional documents to include the following words in your business name:

  • Engineer
  • Attorney
  • CPA
  • Bank 
  • Trust
  • Insurance
  • You’re also not allowed to use any derivative of an existing business name or adding “ing” to forbidden words.

    Furthermore, while you can pick a business name without reserving it, you have the option to reserve a business name.

    Finding a unique brand name and (normal-looking) domain to go with it can be a bit of a time-sink for a new business owner. This free tool from Business Name Zone generates name and domain combos for you based on your input – and it only takes a few minutes.

    Step 2: Registered Agent Requirement

    The second step to starting an LLC in New York is to work with a registered agent. A New York registered agent service will accept legal documents for your LLC.

    New York State operates as its own registered agent, but you have the option to choose a different New York registered agent service. 

    Step 3: File Articles of Organization

    Next, you’ll file a New York LLC Articles of Organization, also known as Form DOS 1336, which the New York Department of State issues.

    Some of the information you’ll need to complete this step is:

  • Your LLC name
  • Your LLC’s county location
  • Purpose of your LLC
  • New York Registered Agent (if needed)
  • Duration of your LLC
  • Service of process designation 
  • Organizer signature 
  • Filer information
  • There are three things you’ll need to know about Article of Organization requirements in New York. First, your LLC or limited liability company will designate the Secretary of State as the agent for the service of process. You’ll provide an address which the Secretary of State will send to your LLC. 

    Second, the organizer of the Articles of Organization will print and sign their name. Third, you’ll provide the address and name of the filer of the Articles of Organization. The New York Department of State will send the filer a filing receipt.

    There are four ways you can send the Articles of Organization. You can submit these forms by fax, by mail, in person, or online.

    Step 4: Create an Operating Agreement

    Fourth, you’ll create an operating agreement. An operating agreement will determine how your New York LLC will operate its:

  • Information about the members of the LLC
  • Management structure of your LLC
  • Buyout and buy-sell rules
  • Distribution of profits
  • Dissolution provisions
  • Outline of voting procedures
  • Duties and powers (for managers and members)
  • Meetings
  • Responsibilities and voting rights
  • An LLC operating agreement is a requirement in New York, which members will create. There’s a limit of 90 days for LLC members to develop an operating agreement, which can happen after forming your Articles of Organization.

    Step 5: Apply for an EIN

    Fifth, you’ll apply for an EIN or employer identification number. The IRS issues an EIN for small businesses, and it’s free to apply. You can apply for an EIN in three ways: by fax, by mail, or even apply for EIN online

    The fastest way to receive your EIN is online, but you’ll need to complete it in one session. If you apply for an EIN by fax, you’ll receive your employer identification number within four business days. If you apply for your EIN by mail, you’ll receive your EIN in four weeks.

    Step 6: Publication Requirements

    The last step to starting a New York LLC is to stay up to date with publication requirements. This is crucial because there are severe penalties if you don’t complete publication requirements within 120 days.

    You’ll publish either a copy of the Articles of Organization or a notice related to your LLC in two newspapers for six consecutive weeks. The newspaper will need to be designated by the county clerk where your LLC will operate. 

    There are three other things to know about LLC publication requirements in New York:

  • You’ll receive an affidavit of publication from the newspaper printer or publisher. 
  • You’ll attach the affidavit of publication to your Certificate of Publication when submitting it to the Department of State.
  • If you don’t file and publish the Certificate of Publication with the Department of State within 120 days, your LLC may lose its ability to conduct business in New York.
  • How much does it cost to form an LLC in New York?

    The final cost to start an LLC in New York will differ from one LLC to another. You may pay more if you expedite fees, and you may pay less if you 

    There are two required fees to start an LLC in New York:

  • You’ll pay a fee of $200 to file Articles of Corporation.
  • You’ll pay a fee of $50 for a Certificate of Publication.
  • You’ll also pay newspapers a fee for the publication of notice.
  • If you want to apply for a name reservation for your LLC, it will cost $20.

    You may pay additional fees if you want to expedite processing times. This is optional, but if you want the New York Department of State to process your fees faster, you can pay:

  • $25.00, per document, for processing within 24 hours.
  • $75.00, per document, for processing within the same day.
  • $150.00, per document, for processing within 2 hours.
  • How long does it take to form an LLC in New York?

    The exact time it will take to form your LLC in New York can vary. It may take a few weeks when setting up an LLC in New York City if you don’t have a business name in mind or an EIN. 

    If you choose expedited processing for your documents, starting an LLC in New York will take less time.

    LLC Fees in New York

    There are three fees you’ll pay to form your LLC in New York: Articles of Organization, Certificate of Publication, and Registered Agent fees.

    Articles of Organization

    The first required fee is for Articles of Organization. This fee costs $200, and there are several payment options available. You’ll have the option of paying the Articles of Organization fee by fax, by mail, in person, or online.

    Certificate of Publication

    The second fee you’ll pay is for the Certificate of Publication. There’s a fee of $50, which you’ll pay to the Department of State. There’s a limit of 120 days to file and pay this fee. 

    Registered Agent

    The last fee you might pay may apply with a registered agent. While there’s no fee for the Department of State to serve as your LLC’s registered agent, you have the option to choose your own registered agent. If you select a different registered agent, there may be a fee.

    Let Us Help You Start Your LLC in New York

    Starting an LLC in New York could be the catalyst for your business's success. It offers minimal requirements and fosters growth with reduced risk.

    To form an LLC in New York, it's essential to follow all necessary steps, which include filing the appropriate forms and paying the required fees. Partner with the experts at 1-800Accountant to efficiently set up your New York LLC.

    This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.