[ad_1]
Every state has its own processes for LLC formation. If you want to set up an LLC in New York State, you’ll have to complete certain paperwork. The below steps cover the basics.
Step 1: Pick Your LLC’s Name
There are certain rules to follow when naming your New York LLC. First, the LLC’s name must be unique from other business names in the state. To make sure your chosen name is one-of-a-kind, you can run a name availability inquiry. If your dream business name is available and you want to save it, you can file an application to reserve it (see the “Application for Reservation of Name”). You’ll have to pay a $20 filing fee. Second, the LLC has to be designated as such, for example with the words Limited Liability Company, L.L.C., or LLC. Finally, the business name can’t include certain restricted words. For example, you can only include the word “attorney” if you’re licensed to practice law or “doctor” if you’re an actual medical professional. The state provides a list of restricted words.
Step 2: Designate a Registered Agent
Every LLC in New York must designate a person or business entity for service of process, something commonly known as a registered agent. In case of legal action involving the LLC, like a lawsuit, the legal papers are sent to the registered agent. The designated agent for the LLC’s service of process must have a physical address in New York (not a P.O. box).
Step 3: File the Articles of Organization
Once you have your business name chosen, you can file the Articles of Organization with the New York Department of State. You’ll have to provide the LLC’s name, county location, filing person’s name and contact details, and designated individual or entity for service of process (the registered agent). The filing fee for the Articles of Organization is $200, which can be paid via credit card, money order, check, or cash.
Step 4: Draft an Operating Agreement
An operating agreement is a formal document that outlines the rights, obligations, powers, and liabilities of the members (owners) of the LLC. Some states require an LLC to draft an operating agreement upon formation, while others don’t. In New York, you are legally required to adopt a written operating agreement for your LLC within 90 days of filing the Articles of Organization. Note that this document is for internal purposes only; you don’t have to file it with the Department of State.
Step 5: Fulfill New York’s Publication Requirements
New York law requires newly formed LLCs to publish a notification of formation in at least two newspapers for a period of six straight weeks. The country clerk in the office of the county where the LLC is located picks the papers. You will have to pay a fee to the newspapers for the publication of the notice; in return, you’ll receive an affidavit of publication. The LLC must then submit these affidavits, along with a Certificate of Publication, to the Department of State, along with a $50 filing fee. Failing to take this step can result in a suspension of the LLC’s business permissions in the state.
Step 6: Get an Employer Identification Number (EIN)
You need an EIN if your business employs other people, withholds income taxes, or files certain types of taxes, including alcohol, tobacco, excise, employment, or firearms taxes. Certain types of businesses, like estates and non-profits, must also have an EIN. You can apply for an EIN for free through the Internal Revenue Service (IRS) website. An online application is the preferred and fastest method. Alternative application methods include mail, fax, and phone. Note that if you have employees, you must register with the New York State Department of Labor after you get your EIN. You can do this online.
[ad_2]
Source link