When beginning a business in New York, one of the most significant decisions you'll make is which corporate structure to choose. If you desire the ease of a sole proprietor with the constitutional protections of a corporation, you may want to consider forming an LLC, or limited liability company, to accomplish your goals. An LLC can also insulate you from being held legally liable for the debts and liabilities of the firm; that's why many freelancers, including entrepreneurs, opt to form an LLC.
It is the quickest and most straightforward method of forming a small- to a medium-sized corporation or startup in New York State, and it also happens to be the most cost-effective (LLC). An LLC provides some of the same safeguards and privileges that bigger businesses have while simultaneously requiring obedience to fewer regulations and laws than do larger organizations. Here’s how to form an LLC in NYC-
Representative of the company
When you form a limited liability company, you must designate someone to receive crucial legal letters (such as citations and subpoenas) on the company's behalf. A registered agent for a limited liability company (LLC) in New York is automatically designated by the New York Secretary of State. The Secretary of State would accept and forward legal mail to your LLC if it is ever served on your limited liability company.
A second registered agent, on the other hand, is often appointed by LLCs in New York in order to guarantee that legal correspondence is transmitted as fast as possible. If you want to go this way, you'll need to know the name and address of your registered agent before you can complete your Articles of Organization.
Within 120 days after filing, new LLCs are required to publish a notice relating to the formation of the LLC or the articles of organization in two newspapers, one daily and one weekly, in order to be effective. Each newspaper submits an affidavit of publishing to the government. This, together with the Certificate of Publication, must be submitted to the Department of State, and it costs $50 to do so. After this is completed, the company can be relocated anywhere in the jurisdiction without the need to publish a new business plan.
Consider acquiring a Certificate of Good Standing if you want to ask for funding from a bank or if you intend to register your LLC in a different jurisdiction (a foreign LLC). It costs $25 to get and certifies that the LLC was lawfully constituted and is still in operation. It's also worth acquiring if you're renewing a license or permit that you already have.
Publication of your Articles of Organization in two newspapers
A copy of the articles of the organization or notification relating to the creation of the LLC must be published in two newspapers by the limited liability company. After the LLC's articles of organization become effective, this criterion must be met within 120 days of the LLC's formation.
LLCs are needed to publish in newspapers recognized by the county clerk in the county in which the LLC's office is situated in order to be effective. The newspaper will offer an affidavit of publication after the article has been published. When the Certificate of Publication is completed, it should be presented to the New York State Department of State together with the newspaper affidavits of publication.
Create a Limited Liability Company Operating Agreement.
Members of an LLC are required to establish a formal Operating Agreement before, at the time of, or within 90 days of filing their articles of incorporation, according to the New York Department of State.
However, even though you are not required to file your LLC operating agreement with the state of New York and, as the State Department acknowledges, the law does not specify any consequences for failing to adopt an operating agreement, you should still draft one to serve as the foundation of your company.
Obtain an Employer Identification Number (EIN).
The Internal Revenue Service (IRS) uses an Employer Identification Number (EIN or FEIN) to identify your firm when you file your tax returns. You may obtain a tax identification number (EIN) directly from the IRS at no cost. While applying online is the most expedient method of obtaining an EIN, if you do not have a national insurance number, you will need to complete a paper application. This is how to form an LLC in NYC for your business and secure your future.
The formation of your LLC provides you with a legal framework on which to do business. Plan to maintain your LLC compliant with state regulations and in good standing on the state's website.
This may entail making quarterly tax payments, for example. New York does not demand an annual report from your LLC, but it may force you to pay a state fee on a yearly basis. The amount is determined by the gross income generated by your LLC in the preceding year. This charge must be submitted to the New York State Department of Taxation and Finance. In addition, you must maintain the services of a registered agent for your company.
