When it comes to business it’s better to have a clear knowledge of the one you really would like to venture into. Every business is a step by step process, it not something that you will just sit down at your home and decide what to do and it will come to pass without hard work and stress.
Every successful business you see today started somewhere and truly, some of the business owners now can really boast that their business has gone far and wide. So, you too can be like them, if you really want to make a positive change in your business.
Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?
Now, you have an idea of why you should start an LLC in Michigan.
A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.
1. New York LLC Information
Limited liability companies (LLCs) in New York are affordable and easy to form. And as with other states, the state of New York has some specific requirements.
The specifications required of a New York LLC are:
File the articles of organization form DOS-1336 with the New York Department of State with all pertinent information such as the LLC name, registered agent address, taxpayer identification number, licenses and permits, and member’s signatures. Do not forget to include the filing fee.
Following Section 206 of the Limited Liability Company Law, businesses are required to publish either a copy of the Articles of Organization they filed with the Department of State or a notice relating to the formation of an LLC. This must be published in two newspapers assigned by a county clerk for six consecutive weeks.
Information in the document to be published must include the name of the LLC, which must match the name filed with the Department of State.
Publishers should provide Affidavits of Publication, which must, in turn, be submitted with a Certificate of Publication to the Department of State, accompanied by the necessary filing fees.
- Forms and Fees
New LLCs must submit their Articles of Organization form and a Certificate of Publication following the required time period for LLC publication. The fees to be submitted with the forms are about $200 and $50 respectively, but fees may change. To get the most current fees, contact the New York Department of State.
Generally, it takes about six to seven weeks to meet the requirements for New York LLC formation, including processing the forms in New York.
As for publication timelines, businesses are given up to 120 days from the date they file their Articles of Organization to publish in two newspapers for six consecutive weeks before all LLC transactions are put on hold.
- Naming Requirements
LLC naming requirements are very strict in New York. The LLC name must be distinguishable from other LLCs, must be approved by state agencies, and must include certain words in order to qualify and be approved by the Department of State.
You may opt to have a preferred name for your LLC checked for availability before you file your formation documents.
- Formation Requirements
Formation requirements are simple: every LLC with more than one member is required to have a limited liability operating agreement between members.
These are the terms entered into between the members of an LLC that govern the income, taxation, and roles of each member.
2. Cost to Form an LLC in New York
LLC registrants are required to file Articles of Organization accompanied by the necessary filing fee of $200. Note: Within the first few months after formation, you’ll also have to pay for publishing a notice of your formation in local newspapers and for filing a Certificate of Publication.
3. How to Start LLC in New York
Knowing the basic registration process and cost of fees before starting your LLC in New York is mandatory so that you won’t regret your actions.
One good thing about LLCs is that there is no maximum number of members. It’s also known as a “hybrid” business structure in the sense that it brings together elements of a corporation and limited liability partnerships.
Here are some tips to help you put together what you need to begin the registration process with the New York Department of State:
- Choose a Suitable Name for your Business
Some items to consider as you select a business name:
- You can choose any name as long as it ends with “Limited Liability Company,” “Ltd. Liability Co.,” or any variant of its abbreviation—LLC or L.L.C.
- The name cannot use restricted or prohibited words and phrases pursuant to Section 204 of the Limited Liability Company Law;
- Some words may require the consent of various state agencies; and
- You may opt to submit a Name Availability Inquiry with the Department of State to make it easier to determine whether or not the name for your LLC meets state requirements and is distinguishable from other LLCs.
- Allocate an Agent for Service of Process
The state of New York will automatically act as your company’s registered agent unless you choose to designate an additional registered agent. Since the Department of State offers limited services, you can also use another agent for the service of process documents.
Regardless of who serves as your registered agent, the Department of State or another agent, you must provide a New York residence address where members may be reached should a suit be filed against your company.
- Ensure that the Company has all the Tax Licenses/Permits Required.
Local permits and licenses can vary between locations, so check with local small business offices, often part of the County Clerk or branch of the city government, to learn more.
The Small Business Association (SBA) also offers expertise in finding local forms and permits or you can use an online business license service provider to obtain the proper licenses and permits for you.
- Get an Employer Identification Number (EIN)
If there are two or more members in your LLC, your company will need to obtain an EIN from the IRS, for tax purposes.
- Create an Operating Agreement
Although the operating agreement is not required to be filed with the Department of State, this is necessary when filing your forms as limited liability Company operating agreements may be entered into by members prior to filing, at the time of filing, or within 90 days of filing the DOS-1336 Form.
- Understand the LLC’s Legal Obligations
Continuing legal obligations may vary with each state. These could be but are not limited to, state taxes, annual or biennial reports and so on. Make sure that your LLC, should it offer professional services, meets state legal requirements.
4. New York LLC Annual Fee
In New York, both single-member LLCs and multi-member LLCs are typically required to pay an annual filing fee.
The amount of filing fee you are required to pay depends on the gross income of your LLC that comes from New York in the previous tax year. The fee can vary from $25 to $4,500.
5. Where to Get Tax ID Number in New York
You may also apply for a tax ID number in NYC over the phone by calling 800-829-4933 Monday to Friday, between 7 a.m. and 10 p.m., Eastern. After taking down your information, the operator will assign you an ID number.
I believe this informative article has answered most of your frequently asked questions about New York LLC? If you still have any questions or contributions you can drop a comment below.