Starting a business in New York can be an exciting journey, and one of the most popular ways to do so is by forming a Limited Liability Company (LLC). Whether you’re launching a small business, a startup, or planning to scale a major operation, forming an LLC can be an advantageous choice for entrepreneurs. It provides flexibility, protection from personal liability, and potential tax benefits.
In this guide, we’ll walk you through the process of forming an LLC in New York. We’ll cover everything from choosing a name for your business to handling the unique publication requirements that New York state mandates. Let’s dive in and explore everything you need to know about starting your LLC in New York in 2025.
Steps to form an LLC in New York
Starting an LLC in New York isn’t overly complicated, but there are a few essential steps and legal requirements that need to be followed. In this guide, we will break down each step for you.
1. Search your LLC Name
Choosing a name for your LLC is the first step in the process, and it’s more than just picking something that sounds good. The name of your LLC must meet several requirements set by the state of New York.
What makes a good LLC name in New York?
- Unique Name: Your LLC name must be distinct from other businesses registered in New York. You can check whether your desired name is available by using the New York Department of State’s Business Entity Database.
- Compliance with Legal Requirements: Your LLC name must include “Limited Liability Company” or the abbreviation “LLC” or “L.L.C.”. For example, “ABC Consulting LLC” or “XYZ Technologies Limited Liability Company” would both be acceptable names.
- Avoid Restricted Words: New York has restrictions on certain words that can’t be used in an LLC name, such as “bank,” “insurance,” and “trust.” These terms typically require additional licenses or approvals.
Before moving forward, be sure to confirm the availability of your desired LLC name.
2. Choose how you’ll approach the LLC Publication Requirement
Unlike many other states, New York has a unique requirement for LLCs: you must publish a notice of your LLC’s formation in two newspapers for six consecutive weeks. This is a mandatory step, and it can be tricky, especially if you’re unfamiliar with the process.
How does the publication requirement work?
After filing your Articles of Organization (which we will discuss in the next step), you will need to publish a legal notice in two newspapers. These newspapers must be designated by the county clerk in the county where your LLC is located. One newspaper must be a daily, and the other must be a weekly publication. You can usually find the approved newspapers by contacting your county clerk’s office.
Once you complete the publication, the newspapers will provide you with Affidavits of Publication. You will need these affidavits to file the Certificate of Publication, which is required by New York state.
How much do the newspaper ads cost?
The costs for newspaper ads in New York can vary widely depending on the county and the publication. In general, you can expect to pay anywhere from $500 to over $2,000. The prices depend on factors like the size of the publication, the county, and the length of the ad.
If you’re in a metropolitan area like Manhattan or Brooklyn, costs could be higher due to the larger circulation of the newspapers. If you’re in a smaller county, costs might be more reasonable.
How do I determine how much money I might save?
The cost of publication can significantly impact the overall cost of forming your LLC. To determine how much you might save, it’s a good idea to research newspapers in different counties. Smaller counties may offer lower rates, and certain services that handle this process can help you find the best deals.
3. Choose a Registered Agent (optional)
A Registered Agent is someone or a company designated to receive legal documents and government notices on behalf of your LLC. While it’s not mandatory for you to hire a professional Registered Agent, it’s something that most business owners choose to do.
What is a Registered Agent?
The Registered Agent serves as a point of contact for your LLC. They will receive important legal notices, tax forms, and other official documents, and they will forward them to you. Having a Registered Agent ensures that your LLC complies with state laws and maintains its good standing.
In New York, if you decide to act as your own Registered Agent, you must provide a physical address in the state, and you must be available during business hours to receive documents. For most people, it’s more convenient to hire a professional Registered Agent.
For example:
- If you hire a Registered Agent service, they will receive your legal documents, ensuring that you don’t miss important notices. This can be especially helpful if you don’t have a physical address in New York.
- If you prefer, you can act as your own Registered Agent, but it comes with the responsibility of handling important legal notices and ensuring that your LLC’s status remains in good standing.
4. File Articles of Organization
The Articles of Organization are the official documents that create your LLC with the state. To file the Articles of Organization, you will need to submit them to the New York Department of State along with the filing fee.
How to file your Articles of Organization:
You can file your Articles of Organization online or by mail. The filing fee for this form is $200. When submitting your application, make sure to provide:
- The name of your LLC.
- The county where your LLC will operate.
- The address of your Registered Agent (or your own address if you’re acting as the Registered Agent).
- The signature of the organizer.
Once your Articles of Organization are filed and approved, your LLC will officially exist as a legal entity in New York.
5. Create an Operating Agreement
While New York doesn’t require you to file your Operating Agreement with the state, it’s essential for your LLC’s internal operations. An Operating Agreement is a legal document that outlines the structure of your LLC, how it will be managed, and the responsibilities of its members.
Why do you need an Operating Agreement?
- Clarifies Ownership: The Operating Agreement defines the ownership percentages of each LLC member and how profits and losses will be divided.
- Establishes Management Rules: It outlines whether the LLC will be managed by its members or by appointed managers.
- Protects Your Limited Liability Status: Having an Operating Agreement is a key factor in maintaining your LLC’s legal status and protecting you from personal liability.
Even if you’re the sole member of your LLC, having an Operating Agreement can help clarify expectations and reduce the risk of disputes down the road.
6. Get an EIN for your LLC
An Employer Identification Number (EIN) is like a Social Security number for your business. It is required for tax purposes, hiring employees, and opening a business bank account. Most LLCs will need an EIN, even if they do not plan on hiring employees right away.
You can apply for an EIN for free through the IRS website. The process is quick, and you will receive your EIN immediately after submitting the application.
How can I get an EIN?
- Visit the IRS website and complete the online application form.
- Provide basic information about your LLC, such as the business name, address, and the names of its members.
- Submit the application, and you’ll receive your EIN right away.
Having an EIN allows you to separate your personal finances from your business finances, which is an important step in establishing your LLC.
7. Publish your newspaper ads (and get Affidavits of Publication)
Now that you’ve filed your Articles of Organization and received your EIN, it’s time to fulfill New York’s publication requirement. You’ll need to publish a legal notice in two newspapers for six consecutive weeks. Once completed, the newspapers will provide you with Affidavits of Publication, which you’ll need to submit with the Certificate of Publication.
8. File a Certificate of Publication
After completing the newspaper publication requirement, you must file the Certificate of Publication with the New York Department of State. This form confirms that you’ve published the required legal notices in the designated newspapers.
The filing fee for the Certificate of Publication is $50. Once the form is filed and approved, your LLC will have officially completed the publication requirement.
9. File a Certificate of Change (optional)
If your LLC ever needs to change its name, address, or other key information, you can file a Certificate of Change with the New York Department of State. This form allows you to update your LLC’s official information with the state.
There is a filing fee associated with the Certificate of Change, so be sure to check the exact fee on the Department of State’s website.
What do I do after my LLC is approved?
Once your LLC is approved, there are still a few important things you need to do to keep your business in good standing.
How much does a New York LLC Biennial Statement cost?
Every two years, New York requires LLCs to file a Biennial Statement with the Department of State. The cost for filing the Biennial Statement is $9.
When is the Biennial Statement due?
Your Biennial Statement is due every two years, based on the calendar month in which your LLC was formed. For example, if you formed your LLC in May 2025, your Biennial Statement will be due every two years in May.
When is my first Biennial Statement due?
Your first Biennial Statement is due by the end of the month in which your LLC was formed, two years after your LLC’s formation.
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 a straightforward process, and the $9 filing fee can be paid online.
How will my LLC be taxed?
New York LLCs are typically taxed as pass-through entities, meaning the business’s profits and losses are passed through to the individual members’ personal tax returns. However, LLCs can elect to be taxed as corporations if it benefits the business. The default taxation method for LLCs in New York is that members pay self-employment tax on their share of the business’s income.
FAQ’s
Can I start an LLC in New York if I don’t live there?
Yes, you can form an LLC in New York even if you don’t live in the state. However, you will need a Registered Agent with a physical address in New York to receive legal documents on your behalf.
How long does it take to form an LLC in New York?
It typically takes 5-7 business days to process your Articles of Organization if filed online. However, the publication requirement takes an additional 6 weeks to complete. So, the entire process may take up to two months.
Can I file the newspaper ads for my LLC myself?
Yes, you can handle the publication requirement yourself. You will need to contact the newspapers directly to arrange the publication and obtain the Affidavits of Publication.
