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New York has always been a symbol of hope, promise, and endless possibilities. So, it’s no surprise that when an entrepreneur decides to start an LLC, New York is one of the first places that comes to mind.
But because of its notoriously high cost of living, for those who want to start an LLC, cost can become a major issue. That’s why understanding the ins and outs of how to get an LLC in NY is so important.
In this blog post, we’ll take you step by step through the process, including general requirements you need to prepare for and the resources you need to succeed. This way you can learn the ins and outs of forming an LLC in NY.
Table of contents
Choose a Business Entity
To understand how to start an LLC in NY you need to understand entity formation. The most popular entity structures are Limited Liability Companies (LLCs) or Corporations. This blog post will focus on LLCs, but here are the differences between an LLC and a Corporation.
A corporation is a legal entity created separately from those who own and operate it. A corporation’s debts and taxes are separate from its owners, thereby offering the greatest personal liability protection of all business structures. The two most common types of corporations are S and C corporations.
LLCs are the most popular business structure, blending the aspects of corporations, partnerships, and sole proprietorships into a simple and flexible business entity. Like corporations, LLCs protect the owners and operators from personal liability similar to a corporation, and they possess the “pass-through” tax benefits of a partnership.
Creating an LLC in New York isn’t difficult once you understand the ins and outs of this powerful entity structure.
New York Business Filing Fee
Despite many of the high costs of staring a NY LLC, New York is actually on the lower end when it comes to state filing fees, at $210. Compared to Massachusetts’ $500 filing fee, New York’s fee isn’t so bad.
So, in a nutshell, when it comes to LLC cost, New York is high in many areas but fairly reasonable in others. You’ll have the weigh all the costs to determine your next steps.
Create a Business Name
Starting an LLC in NY also requires you to figure out your business name. It’s actually one of the biggest decisions you’ll make. It may not seem as important as choosing the type business entity, but it is. As a matter of fact, many legal issues can arise from choosing the wrong name for your business startup. So, let’s look at how to register a business name in New York:
- First off, come up with a unique business name that captures what your business will do, is easy to pronounce, and isn’t era specific or too niche. This is easier said than done, so take your time.
- Once you’ve decided on a name, search the web to make sure no one is using it. This may force you to go back to the drawing board. You might also want to check if your desired website URL name is already taken, then plan for an alternative,
- After doing a basic search, you’ll need to do a more thorough trademark search. This is an important step that can lead to a lawsuit if done incorrectly. A good rule of thumb to follow when doing a trademark search is to search for misspellings, plurals, variations of spelling, sound-alike and more…
- Finally, to register a business name, New York law requires you to run your chosen name through the New York State Division of Corporations, State Records, and UCC database making sure to follow the same rules mentioned above.
To check the availability of your business name in New York, search their online database.
Register Your Business
Now that you’ve decided on an entity structure and created an original business name, here’s how to register a business in New York.
You’ll need to file what is known as Articles of Organization with the New York Secretary of State LLC Division.
Once filed and approved, you’ll need to properly organize your LLC with an Operating Agreement.
Get Your Employee Identification Number or EIN
The next step in starting a NYC LLC is getting your EIN or Tax ID Number (TIN). This federal number is like your business’s social security number, separating you from your business. This protects you from fraud and identity theft.
Additionally, an EIN is required by your bank to open a Business Checking Account, file tax returns, obtain payroll services, and credit cards.
Attain Your Business Licenses and Permits
The final step you must learn is how to get a business license in New York. Getting the proper licenses and permits for your small business, authorizes your company to do business in your city/county.
When is comes to applying for a business license for your LLC, New York makes it easy with their online portal called the New York State Licensing Center. It’s a robust system that helps entrepreneurs discover what licenses/permits they need. Remember, license requirements vary depending on your operating city county and industry.
Let’s get started
Starting a business in New York is an exciting opportunity, but like starting most businesses it can be overwhelming. Why not let the business experts at Inc Authority do all the heavy lifting for you?
We’ll form your LLC or corporation, run a business name check, get your EIN, and make sure you have all the licenses and permits needed to run your business in New York.
Not to mention we offer a ton of free management tools to help make running your business as simple as possible. Contact us today to get started!
Incorporating is the most powerful thing you can do to legitimize your business. And at IncAuthority.com, our setup LLC services are 100% free. Always. So, don’t wait. Form your free LLC today and enjoy the protection due to you and your business under the law.