Filing an LLC in New York StateSeptember 2021 | Steven J. Brennan, Esq.
There has been a surge of “at-home” businesses started in the past year and the increased numbers are not slowing down. Entrepreneurs in many different areas are enjoying the low overhead of working right out of their home, putting that savings right back into the business to help it grow. If you are a “budding entrepreneur” and have been thinking about forming a new business, consider the benefits of creating an LLC.
An LLC is one of several different types of business entities that can be formed in New York State. It’s important to also research other types of entities (corporations, DBA’s, partnerships, etc.) to see what entity type is best for you.
The first step when creating an LLC is to file with the New York State Department of State (hereinafter “the Department”). It is usually best to file online because the Department’s website will check the name of your new business automatically to make sure it is available.
Your LLC name MUST end with the insignia LLC, L.L.C. or the words Limited Liability Company. The Department will charge you $200 to file; once filed, the Department will send you documentation (a filing receipt and articles of organization) as proof that you filed and can operate your new business.
As an aside, you can obtain a free employer identification number (EIN) for your new business from the IRS (irs.gov) after your LLC is filed with the Department. You can then use your EIN, filing receipt and articles of organization to open a separate banking account for the LLC. You must also obtain an operating agreement for your LLC, which is an “internal document” (this doesn’t have to be filed anywhere but should be kept with your important papers) that can be obtained online for a fee or from an attorney.
The next step in filing an LLC is to “publish” in two different newspapers for six consecutive weeks in the county where your LLC is located. A list of newspapers can be obtained from your local county clerk’s office; one of the newspapers must be a daily paper and one must be a weekly paper.
This “publication” is not the same as advertising your business; rather, it is announcing to the newspaper’s audience the formation of your LLC. Once you have decided which newspapers you will “publish” in, simply contact the newspapers and they will advise you of their procedure and the cost involved.
Each newspaper will send you an affidavit swearing they completed the “publication” for you after six weeks have elapsed. This “publication” step is required by New York State law and needs to be completed within 120 days of the date of filing.
The third and final step in the LLC formation process is to advise the Department that you have completed step two outlined above. The Department can be advised by sending them both affidavits that you received from the newspapers, a personal or business check for $50, and a completed Certificate of Publication (a form that can be obtained for free from the Department’s website) to their address.
Please feel free to contact your Legal Service Plan’s National Legal Office at 800-292-8063 with any questions regarding filing or whether another business entity may be a better option for you.
*You should also consult with your accountant prior to formation to discuss any tax ramifications pertaining to your business.