Legal Bueno

    How to Start Your LLC in New York

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $200
    • Turnaround time: immediately

    How do I start an LLC in New York?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for New York, visit https://apps.dos.ny.gov/publicInquiry/.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in New York?

    Here's the rundown for New York:

    • The filing fee is: $200
    • There are ongoing fees of $9 (every 2 years)
    • It usually takes immediately if you're filing online or 8 months (plus mail time) if by mail.

    Why New York is a great state for your LLC

    Starting a company in New York offers numerous advantages that can enhance the success and growth potential of your business. Here are some key benefits:

    • Prestige and Visibility: Establishing a business in New York City carries a level of prestige that can attract customers, clients, and talent, providing a unique leverage point for brand recognition.
    • Tax Incentives: The state has several programs designed to support small businesses. Notably, the Start-Up NY program allows approved businesses to benefit from significant tax breaks when they set up in designated areas, like vacant spaces of participating colleges or incubators.
    • Support for Small Businesses: New York provides specific incentive programs tailored for small and medium-sized businesses (SMBs), particularly helpful for LLCs. These programs can lower operational costs and enhance profitability.
    • Incentive Wizard: New York State offers an online tool, the incentive wizard via NYS Business Express, helping entrepreneurs discover the most suitable tax credits and incentives for their business needs.
    • Formation of LLCs: Creating a New York LLC is straightforward and beneficial. An LLC provides essential legal protections by limiting personal liability concerning business debts while offering simplicity in management and compliance.
    • Tax Benefits for LLCs: LLCs can potentially be exempt from the New York Corporate Income Tax, depending on specific conditions, making tax responsibilities easier to manage.
    • Low Filing Fees: Starting an LLC in New York requires a relatively low filing fee of just $205, making it an accessible option for many aspiring entrepreneurs.
    • Alternative Structures: If an LLC does not fit your business model, New York also allows for the formation of a corporation, providing various structures to suit different business needs.

    Overall, New York provides an encouraging environment for entrepreneurs, with an array of programs, protections, and incentives designed to foster business growth and sustainability.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for New York:

    Articles of Organization

    The articles of organization must include: 1. The name of the LLC;

    1. The county within New York in which the office of the LLC is to be located or if the LLC will maintain more than one office in New York, the county in which the principal office is to be located;
    2. If the LLC is to have a specific date of dissolution in addition to the events of dissolution set forth in N.Y. Ltd. Liab. Co. Law § 701, the latest date on which it is to dissolve;
    3. A designation of the secretary of state as agent of the LLC upon whom process against it may be served and the post office address within or without New York to which the secretary of state must mail a copy of any process served; the LLC may include an email address to which the secretary of state shall email a notice of the fact that process against it has been electronically served upon him or her;
    4. If the LLC is to have a registered agent, its name and address within New York and a statement that the registered agent is to be the agent of the LLC upon whom process against it may be served.

    See statute for further requirements.

    N.Y. Ltd. Liab. Co. Law § 203

    Filing fee: $200

    N.Y. Ltd. Liab. Co. Law § 1101

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what New York laws require for filing:

    A signed articles of organization and any signed certificate of amendment or other certificates filed or any judicial decree of amendment or cancellation must be delivered to the Department of State. If the instrument that is delivered to the Department of State for filing complies with the requirements of law and the filing fee is paid, the document must be filed and indexed by the Department of State. The Department of State must not review such articles or certificates for legal sufficiency; its review must be limited to determining that the form has been completed.

    N.Y. Ltd. Liab. Co. Law § 209

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in New York:

    Operating agreement

    N.Y. Ltd. Liab. Co. Law § 417

    Certificate of change

    N.Y. Ltd. Liab. Co. Law § 211-A