Starting a Limited Liability Company (LLC) in New York can be exciting and rewarding for any entrepreneur. An LLC offers a unique blend of liability protection, as seen in a corporation, and the flexibility and tax benefits commonly associated with a partnership. If you’re considering setting up an LLC in New York but need help figuring out where to begin, don’t worry!
This complete guide will walk you through each step and provide practical tips to help you quickly establish your New York LLC. So, let’s get into the steps to get your New York LLC.
Step 1: Choosing the Name for Your New York LLC
First things first, your business needs a name. Here’s what to remember:
- It should have “LLC” or something similar.
- Make sure it’s different from other business names in New York.
- Avoid names that sound like government agencies.Before settling on a name, use the New York Department of State’s website or check a quick, free name. If you are considering getting a website name that matches your business name, You can find good deals for your domain names on Namecheap.
Step 2: Appointing a Registered Agent in New York
A registered agent acts as your LLC’s point of contact for receiving legal documents. In New York:
- The New York Secretary of State automatically acts as your registered agent.
- You can appoint another individual or a professional service as your agent.
Choosing a reliable registered agent ensures that your LLC doesn’t miss any necessary documents.
If picking one sounds complicated, you can use a service. If you want to skip the process, check out Bizee or Northwest Registered Agent.
Step 3: Files of Articles of Organizations
Filing the Articles of Organization is crucial to officially forming your LLC in New York. This document registers your LLC with the New York Department of State and includes essential information about your business.
How to Send Your Form:
- Online: Filing online is the fastest and most straightforward method. You can file your Articles of Organization through the New York Department of State’s online filing system. This platform provides instructions and allows you to pay the filing fee electronically.
- By Mail: If you prefer to file by mail, download the Articles of Organization form from the New York Department of State’s website. Complete the form and mail it, along with the filing fee, to the Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.
- In-Person: Those who file in person can submit their documents to the same address in Albany. This option might be beneficial if you’re nearby and prefer to handle the submission personally.
Filing Fee:
Filing the Articles of Organization in New York costs $200. This fee applies whether you file online, by mail, or in person, making it the primary cost of starting your LLC in New York.
Step 4: Publish Certificates of Publication
One unique requirement in New York is publishing a notice of your LLC formation in two newspapers for six consecutive weeks. This must be done within 120 days of forming your LLC. After publication, you’ll receive affidavits from the newspapers, which you must file with the New York Department of State along with a Certificate of Publication.
Step 5: Making an Operating Agreement for Your Business
Let’s discuss setting up some ground rules for your business. This is where an Operating Agreement comes in. Think of it as a handbook that explains how your business runs. It’s important because it helps everyone understand their role and what’s expected in your LLC.
Here’s what an Operating Agreement usually includes:
- Ownership: This part talks about who owns what percentage of the business.
- Member’s Rights and Responsibilities: Here, you’ll write down what each person in the LLC can and cannot do and what they’re responsible for. It’s like a job description for each member.
- Joining & Leaving: This section covers how new people can enter your business and what happens if someone decides to leave. It’s good to have this figured out so there are no surprises later.
- Dissolution: This might sound a bit gloomy, but it’s practical. It’s about how to close down the LLC if you ever need to. It includes the steps to take and how to handle everything when wrapping up the business.
Creating an Operating Agreement is a smart move. It keeps things clear and organized so everyone knows what to expect, and it can save you a lot of time.
Step 6: Getting Your EIN from the IRS
Your business needs a number called an EIN from the IRS. It’s like an ID number for your business. This number will help you as an identification number when getting bank accounts, credit accounts, filing taxes, and hiring employees.
It’s free, and you can get it from the IRS website at https://www.irs.gov/businesses/small.
Additional Recommendations: Using a Service like Bizee
For those who find the process overwhelming or prefer to focus on other aspects of their business, using a service like Bizee can streamline the formation of your LLC. These services handle the paperwork and ensure that your filings are correct and submitted on time.
New York LLC: Permits, Licenses, Tax Requirements, and Annual Reporting
After establishing your LLC in New York, navigating the state’s regulatory landscape is crucial for compliance and operational success. This includes obtaining necessary permits and licenses, understanding tax obligations, and fulfilling annual reporting requirements. Let’s explain what you need to know for your New York LLC.
Obtain Any Additional Permits and Licenses
The specific permits and licenses required for your LLC depend on your business activities and location.
Local Business Licenses
- Overview: Many local governments in New York require businesses to obtain local business licenses.
- How to Obtain: Check with your city or county clerk’s office or website for specific requirements and application processes.
Professional Licenses
- Overview: Certain professions may require state-issued professional licenses.
- How to Obtain: The New York State Education Department oversees professional licensing. Visit their website for information on licensing requirements for your profession.
Health Permits
- Overview: Businesses involved in food service, healthcare, or beauty services may need health permits to ensure public safety.
- How to Obtain: Health permits are typically issued by the New York State Department of Health or local health departments. Check their website for specific requirements and application procedures.
Tax Requirements in New York
Understanding and managing your LLC’s tax obligations is essential for legal compliance and financial health.
Employer Taxes
If you plan to hire employees, you need to:
- Register for Unemployment Insurance Tax through the New York State Department of Labor.
- Register for Employee Withholding Tax through the New York State Department of Taxation and Finance.
State Taxes
- Pass-Through Taxation: LLCs in New York are treated as pass-through entities for federal tax purposes but may be subject to state taxes depending on their earnings.
- Sales Tax: If your LLC sells goods or specific services, you must register for a Sales Tax Certificate of Authority through the New York State Department of Taxation and Finance.
- EIN: All LLCs need an Employer Identification Number from the IRS for tax purposes, hiring employees, and more.
Annual Reporting in New York
Maintaining good standing with the state requires filing an annual report for your LLC.
- Filing Requirements: New York LLCs must file a Biennial Statement every two years with the New York Department of State.
- Fees and Filing: The filing fee for the Biennial Statement is $9. You can file online through the New York Department of State’s website.
- Importance: This report updates the state of your LLC’s contact information and is crucial for keeping your LLC in good standing.
To successfully operate your New York LLC while following state laws, it’s essential to abide by permits, licenses, tax obligations, and biennial reporting guidelines.
New 2024 Reporting Requirements (BOI)
Effective from January 1, 2024
Big news! Starting January 1, 2024, there are new reporting requirements for both domestic and foreign reporting companies. This includes LLCs, corporations, and other entities. Here’s what you need to know:
First Report Deadlines:
- Existing Entities: If your LLC was already around before 2024, you’ve got until January 1, 2025, to submit your first report.
- New Entities: If you’re forming your LLC in 2024, you must file your report within 90 days of your company’s creation.
Who Needs to Report:
- Domestic Reporting Companies: This includes LLCs and similar entities within the U.S.
- Foreign Reporting Companies: Entities registered foreign entities must also adhere to these new rules.
Exceptions to Reporting:
- For specific exceptions, you’ll want to refer to the Beneficial Ownership Information Reporting Regulations at 31 CFR § 1010.380(c)(2) and the Small Entity Compliance Guide.
What Must Be Reported
What you need to report is all about transparency. The exact details can be found in the compliance guide, but it generally involves information about your LLC’s ownership and control.
When Must Reporting File Reports
Timing is key! Remember, if you’re an existing entity, your deadline is January 1, 2025. For new LLCs formed in 2024, it’s within 90 days of creation.
Filing Reports & Noncompliance Penalties
Starting January 1, 2024, all BOI reports must be filed electronically. Here are some critical points:
- Filing Before the Date: You must file on January 1, 2024.
- Accuracy: Filer certification of accuracy is mandatory – you need to double-check that everything you report is correct and accurate.
Penalties for Noncompliance:
- False Information: Providing false information or failing to report accurately is a big no-no.
- Penalties: If you slip up here, you could face a fine of up to $10,000 or even imprisonment for up to 2 years.
- FinCEN’s Approach: The Financial Crimes Enforcement Network (FinCEN) focuses on education and outreach to ensure compliance. They’re not trying to trip you up; they want to help you get it right.
- Safe Harbor Rule: Did you make a mistake? If you discover inaccuracies in your initial report, you have a 90-day grace period to submit a corrected report.
If you need more information or specific guidance, please visit the FinCEN website for all the details.
What to Do After You’ve Started an LLC
- Open a Separate Business Bank Account: Keeping your personal and business money apart is super important. Mixing them up can cause significant problems, like losing the protection of having an LLC. This mix-up is sometimes called “piercing the corporate veil,” it can put your stuff, like your car or house, at risk if your business runs into trouble. To open a business bank account, you’ll need:
- Your LLC’s Articles of Organization.
- Your Operating Agreement.
- Your Employer Identification Number (EIN).
When picking a bank for your business, consider the fees, minimum deposits, and benefits (like earning interest) they offer. Look for features that help your business, like using a debit card to pay for things.
Get a Business Credit Card
A business credit card is an excellent tool for handling business purchases and can help build your company’s credit history. Just like with personal credit, a good business credit score can make it easier to get loans and may qualify you for better terms. Visit our website to see our favorite business cards review.
Check out our blog: Novo Review: The Best Business Banking Account in 2024.
- Set Up Your Finances Right: Use good habits to track your money. This means not mixing your cash with your business’s. Good record-keeping makes tax time less stressful and helps avoid problems with the rules. You should use a program like QuickBooks to track your money, inventory, payroll, and sales. Talking to professionals like accountants or business lawyers is also intelligent, especially when understanding your LLC state’s tax rules. Find experts who know a lot about the area where your business is.
- Create a Professional Website: Having a website makes your business look legit. WordPress is a great tool to build your site. You can check out SiteGround or Hostinger for web hosting. They’re both good options to get your site up and running.
- Announce Your Business with a Press Release: A press release is a fantastic way to promote your new business and attract customers.
If you’re starting an LLC in New York, there are several steps you need to follow. These include choosing a name for your LLC and getting an EIN. You may feel overwhelmed by the requirement to publish certificates, but following these steps will ensure that your LLC complies with New York state laws. Remember, this guide is meant to simplify the process, but seeking professional advice for any legal or financial matters specific to your situation is always a good idea.
Bizee Overview
Bizee LLC handles the paperwork and legal stuff needed to get your business. Think of it as having a personal assistant for your business setup, ensuring you don’t trip over any legal hurdles or paperwork nightmares.
Why Choose Bizee?
Now, you might wonder, “Why go with Bizee?” First off, they save you a ton of time. We all know how precious time is, especially when you’re trying to get your business rolling. Bizee takes care of the tedious and complex stuff, like filing documents with the state, so you can focus on the fun parts of running your business.
Another big plus is how they help you avoid mistakes. Let’s be honest: filling out government forms can be confusing, and one small error can set you back big time. Bizee knows their way around these forms like the back of their hand, ensuring everything is done right the first time.
Bizee Core Services
- Business Formation: They’ll help you officially start your business by filing it with the state. This includes setting up LLCs, corporations, and more.
- Compliance: Bizee ensures your business stays in good standing with the state by managing annual reports and other legal requirements.
These services are the backbone of Bizee, ensuring your business is set up correctly and remains compliant with state laws.
Bizee Additional Services
- Registered Agent Service: This is a must-have for keeping your business legit. Bizee will be your official contact for legal documents, ensuring you get all the necessary info.
- EIN Acquisition: Think of an EIN as a social security number for your business. Bizee can get this number for you, which you’ll need to open bank accounts and hire employees.
Starting a business is exciting, but the paperwork and legal stuff can drag. That’s where Bizee LLC takes the hassle out of the equation. We recommend getting the gold/platinum plan for 99% of business owners.
