Starting a business is an exciting journey, but navigating the process of forming a legal entity can be a bit tricky, especially when you’re in a state like New York, which has specific requirements that must be followed. If you’re planning to start an LLC (Limited Liability Company) in New York, you’re in the right place!
This comprehensive, step-by-step guide will walk you through the entire process of setting up your LLC in New York in 2025, from checking the availability of your business name to completing all necessary filings.
An LLC is one of the most popular business structures because it offers flexibility and protection. Unlike a sole proprietorship, an LLC helps separate your personal assets from your business’s debts and liabilities, meaning your personal assets (like your home or car) are generally safe if your business gets into financial trouble. Additionally, an LLC offers tax benefits and a simplified management structure, making it an ideal choice for many entrepreneurs.
However, while starting an LLC is an excellent decision for protecting your business, it’s important to understand the steps required to legally form and maintain your LLC in New York. The process isn’t overly complicated, but there are certain things you’ll need to know, including how to handle New York’s unique publication requirement (which isn’t required in most other states). This involves publishing notices in two local newspapers, a requirement that adds a bit of extra time and expense to the process.
Additionally, you’ll need to understand the need for an Operating Agreement, how to choose a Registered Agent, and what to do after your LLC is approved by the state. From filing the Articles of Organization to getting your Employer Identification Number (EIN) from the IRS, this guide will break down each step so you can start your LLC confidently.
Whether you’re setting up your first business or you’ve already navigated the process before, this guide is designed to ensure that you follow each step correctly. It’s written in simple, easy-to-understand language to make sure that you’re fully informed every step of the way. By the end of this guide, you’ll have the knowledge and confidence to form your LLC and start your business in New York with success. Let’s dive in!
Steps to form an LLC in New York
1. Search Your LLC Name
The first step to starting an LLC in New York is to choose a unique name for your business. Your LLC name must be distinguishable from any other business registered in New York, and it must include the words “Limited Liability Company” or abbreviations such as “LLC” or “L.L.C.” before the name ends.
How to Check if Your Name is Available:
- Visit the New York Department of State website to search the database of existing businesses to see if your desired name is available.
- Ensure your name is not too similar to an existing business, as this could cause delays or rejections during the registration process.
2. Choose How You’ll Approach the LLC Publication Requirement
New York has a unique rule that requires you to publish a notice in two newspapers for six consecutive weeks. The newspapers must be located in the county where your LLC is based, and the publication has to be done in both a daily and a weekly newspaper.
How much do the newspaper ads cost?
The cost of publishing an LLC notice in New York varies widely based on the county and the newspaper. Typically, it can range from $300 to $1,500, depending on the location.
How do I determine how much money I might save?
If you’re looking to save money, consider setting up your LLC in a less expensive county, as the cost of publication can vary. It’s also worth contacting different newspapers in the area to compare prices before committing to a specific one.
3. Choose a Registered Agent (Optional)
A registered agent is a person or business entity designated to receive legal documents on behalf of your LLC. While this step is not mandatory, it can help you stay organized and ensure that you never miss important mail.
For example:
A registered agent can help by receiving court papers, tax notices, and other official correspondence, which you may not want to handle yourself if you’re busy running your business.
What is a Registered Agent?
A Registered Agent can be an individual or a service provider that operates in New York. If you choose to act as your own Registered Agent, you must have a physical address in New York (not a P.O. Box) where legal documents can be delivered during business hours.
4. File Articles of Organization
Once you’ve chosen your LLC name and registered agent, the next step is to file the Articles of Organization with the New York Department of State. This is a formal document that officially creates your LLC.
- You can file online or by mail.
- The filing fee is $200 as of 2025.
After filing, the state will send you a confirmation that your LLC has been officially formed.
5. Create an Operating Agreement
Even though it’s not required to file with the state, creating an Operating Agreement is an essential step in setting the groundwork for your LLC. This document outlines the ownership structure and operational rules for your business.
The operating agreement helps protect your limited liability status by clarifying your role and the roles of other members, as well as how profits and losses will be distributed.
6. Get an EIN for Your LLC
The next step is to obtain an Employer Identification Number (EIN) from the IRS. An EIN is like a Social Security number for your business and is required for tax purposes.
How can I get an EIN?
Getting an EIN is quick and easy. You can apply online on the IRS website, and it’s free. After completing the application, you’ll receive your EIN immediately.
Having an EIN is necessary for opening a business bank account, hiring employees, and filing taxes.
7. Publish Your Newspaper Ads (and Get Affidavits of Publication)
After your LLC is officially formed, you must publish an LLC notice in two newspapers for six weeks, as mentioned earlier. After the ads are published, the newspapers will provide you with Affidavits of Publication, which serve as proof that you’ve fulfilled the publication requirement.
8. File a Certificate of Publication
Once you have the Affidavits of Publication, you need to submit a Certificate of Publication to the New York Department of State. You’ll need to send both the affidavits and a filing fee of $50.
Once the certificate is filed, your LLC will have met the publication requirement.
9. File a Certificate of Change (Optional)
If you need to make changes to your LLC after it’s formed, such as changing the registered agent or LLC address, you can file a Certificate of Change with the state. This is an optional step, but it’s essential if any information about your LLC needs updating.
What Do I Do After My LLC Is Approved?
Once your LLC is approved and your paperwork is filed, you need to stay compliant with state requirements to maintain good standing. Here’s what to keep in mind:
How much does a New York LLC Biennial Statement cost?
The Biennial Statement is a document that updates the state on your LLC’s current information. It costs $9 to file.
When is the Biennial Statement due?
The Biennial Statement must be filed every two years. The due date is the last day of the month in which your LLC was originally formed.
When is my first Biennial Statement due?
Your first Biennial Statement will be due two years after your LLC is officially formed. Keep an eye on the due date, as failing to file could result in penalties.
How do I file my LLC Biennial Statement?
You can file your Biennial Statement online through the New York Department of State’s website. It’s an easy process that only takes a few minutes.
How will my LLC be taxed?
LLCs in New York are subject to the state’s taxes, but the way your LLC is taxed will depend on its structure. For single-member LLCs, the business is typically taxed as a sole proprietorship. For multi-member LLCs, it’s generally taxed as a partnership. You can also choose to have your LLC taxed as an S-corp if it qualifies.
LLCs are not taxed directly by the state but must file taxes annually to stay in good standing. You’ll need to file the necessary forms and pay taxes based on your earnings.
How to Start an LLC in New York FAQs
How long does it take to form an LLC in New York?
Generally, it takes about 2 to 3 weeks to form an LLC in New York, though it may take longer if there are any complications or delays.
Do I need to hire a lawyer to start my LLC?
No, hiring a lawyer is not necessary, though it can help if you want legal advice or have a complex situation. Many people opt for an LLC formation service or handle the paperwork themselves.
Can I use a P.O. Box for my LLC’s address?
No, you cannot use a P.O. Box as the registered address for your LLC in New York. You must provide a physical address where legal documents can be sent.
What happens if I don’t meet the publication requirement?
If you don’t meet the publication requirement, your LLC will not be in good standing with the state, and you may face penalties. The state can suspend your LLC, which could prevent you from legally operating or accessing state services.
Can I start an LLC without publishing in New York?
Unfortunately, no. The publication requirement is one of the few that New York has for LLCs. If you do not complete the publication, you won’t be able to file your Certificate of Publication, and your LLC status will be in jeopardy.
Final Thoughts
Starting an LLC in New York can seem like a daunting task, but with the right guidance and a clear understanding of the necessary steps, you can navigate the process with ease.
The state’s unique requirements, such as the publication rule, may add complexity, but they’re manageable as long as you follow the steps carefully. By choosing a unique LLC name, filing the required documents, and fulfilling all state obligations, you’ll be setting your business up for success and legal protection.
The flexibility that an LLC provides in terms of tax benefits, liability protection, and management structure makes it an appealing choice for many entrepreneurs. Whether you’re a first-time business owner or have experience in launching companies, this guide will ensure you don’t miss any critical steps in the LLC formation process.
While the process may take a few weeks and require some financial investment, especially with the publication requirement, it’s worth the effort. Once your LLC is officially formed, you’ll have the peace of mind knowing that your personal assets are protected, and you have a legally recognized entity to help grow your business.
So, take your time, follow each step outlined here, and don’t hesitate to reach out for professional help if needed. Starting your LLC in New York may seem complicated, but with the right knowledge, it’s a straightforward and rewarding process that will position your business for long-term success.
Take your time, check every box, and you’ll be ready to take your business to the next level in 2025!