Open LLC in NY

How to start a Limited Liability Company (LLC) in New York?

If you are seeking to start a new business entity or restructure your current business, an LLC is a great option to consider. A limited liability company, or LLC, is a legal corporation with an amalgamation of benefits of both corporation and sole proprietorship.

It includes the flexibility of a partnership, the lack of formalities that a sole proprietorship has, and the limited liability protections of a corporation. 

If you are starting your business and are concerned about limiting your personal liability for debts, legal judgments, and other business liabilities, an LLC may be worth considering.

Steps to form an Open LLC in NY

With the help of a New York business attorney, starting an LLC is easier than you think. The following steps outline the general process:

  • Naming your LLC in New York;
  • Selecting a registered agent in New York;
  • Filing New York Articles of Organization;
  • Abide by the Publication Requirements for New York;
  • Draft and execute an operating agreement; and
  • Obtaining an EIN with the IRS.

Naming your LLC in New York

As with any entity, choosing a name for your LLC is an essential first step in setting up your business. The name you choose must not be in use by a similar business and must comply with the naming regulations of the state of New York. The name of an LLC should be easily searchable by clients.

If you find it challenging to select a name for your organization, you can seek the assistance of an experienced New York Business Lawyer.

For the name of your New York LLC be careful not to incorporate certain words that the legislature has determined to confuse consumers. Some of these words may be used with approval from the Secretary of State. 

To open an LLC in NY and use some of the limited words such as a bank, your lawyer may need to file additional paperwork. The availability of the business names may easily be verifiable by checking at the New York Department of State Division of Corporations.

Selecting a Registered agent in New York

Unlike any other state, In New York, the New York Department of State is the default registered agent for the service of a corporation. However, a corporation can choose to appoint its own registered agent. To do so, paperwork needs to be filed with the Department on behalf of the LLC. 

One of the key requirements once you open an LLC in NY is to keep your name, address, and contact information up to date with the Department of State. This is done so that legal documents can easily be transmitted to the entity. Whether it is the Secretary of State or to your designated agent, your LLC is responsible for anything delivered to your registered agent.

Filing New York Articles of Organization

To open an LLC in NY, the founding members must draft, execute and file articles of incorporation. You can prepare your own or use the New York Secretary of State form DOS 1336-f. Articles of organization for a New York LLC must include the following:

  • Name of the LLC;
  • The physical location of the LLC in New York;
  • The mailing address of the LLC where the Secretary of State for New York can mail documents;
  • LLC’s organizer signatures on the incorporating documents;
  • Names of the members who are filing the articles along with their address.

Abide by the Publication Requirements of New York

In order to open an LLC in New York, you need to meet the publication requirements required by New York state law. The law specifies that within 120 days of LLC formation, notice must be published in two of New York newspapers.

One of the newspaper publications must run for one week and the other one daily for 6 consecutive weeks. The choice of newspapers is specified by New York state guidelines.

Developing an operating agreement

To open an LLC in NY, you need to create a written operating agreement. The agreement must be completed within 90 days of filing the Articles of Organization. The agreement must specify the duties, rights, powers, obligations, and liabilities of the members of the LLC. The agreement will serve as an internal document and does not require filing with the New York Secretary of State.

Obtaining an EIN

This is essential as you will need an IRS Employer Identification Number (EIN) to comply with all of the federal, state, and local tax regulations. Depending on the business location and activity, you may need to obtain business licenses with local or state governments.

What to do after your LLC gets registered?

Once your LLC gets registered, you may need to meet other requirements. For example, depending on the nature of your business, you may need to obtain additional licenses. These may include health department permits, occupational permits, and other professional licenses. 

It is essential to register your business with New York’s taxing agencies. After that, you can open a bank account for your business and apply for a credit card. Purchasing an insurance policy for your business is also essential. You can safeguard your business name and logo with the help of a trademark.

Need Legal Help? Speak with an experienced Attorney

If you are ready to start your LLC and are facing any trouble in how to move further, you need to contact The Venture Lawyer.

Our lawyers will help you understand all the mandatory requirements that you need to fulfill to start your business. Schedule a free consultation for a discussion of your business plan.

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