As you prepare to start a new business, you will be inundated with many things to consider and many decisions to be made. One of the most basic, but significant choices that you have to make is what type of business structure is best for your New York business. A popular choice for many is to form an LLC (limited liability company). Read on to learn about how to form an LLC in New York.
Other Business Types
In New York, you have a couple of different options when it comes to types of business structures. Each one comes with its own sets of pros and cons. When you decide on a corporation, you are protected from the personal liability that comes from starting a sole proprietorship, which is the easiest structure to form. However, forming a corporation involves completing complex paperwork that must be submitted to the state government. An LLC combines elements of a corporation with elements of a sole proprietorship: It shields you from personal liability and contains less formalities than a corporation. For some, this is the best of both worlds, making it a popular option for small business owners.
Steps to Take When Forming a New York LLC
Just like every state, New York has specific requirements that must be completed before an entity can become an LLC. One preliminary requirement is that the principle must be a resident of New York. Here are the next steps to forming your New York LLC:
- Business Name: You will need to pick a business name for your LLC. The name can’t be a name already used in New York and it must contain “LLC”, “L.L.C.”, or “Limited Liability Company.”
- Articles of Incorporation: File Articles of Incorporation with the state and pay the required filing fee.
- Registered Agent: Appoint a registered agent. A registered agent (or RA, also known as an agent for process of service) is specified by the business for the purpose of receiving official legal documents, including lawsuit documents, subpoenas, wage garnishments, and other official legal documentation.
- Operating Agreement: Create and adopt an operating agreement for your LLC. This the key document within your company that sets up the powers, duties liabilities, rights and responsibilities of the members of the LLC to each other and to the LLC. Because it’s an internal document, you don’t have to file this with the state.
- Publishing Requirement: Within 120 days of forming the LLC, you must publish a notice in two general circulation newspapers (one daily, one weekly) in the county where the LLC was formed.
- License and Permit Requirements: Depending on the type of business activities, you may have to obtain license or permits from local or state governments.
Get Help Forming your New York LLC from an Experienced Attorney
While New York doesn’t require the use of a lawyer to form an LLC, the Articles and Operating Agreement create enforceable rights and responsibilities and there are many tax considerations to contemplate. Consider using a skilled MOWK Law attorney to help you with your formation so that nothing is overlooked. We will work hard to represent your best interests. Contact us today to learn more and to get started.