Forming a Limited Liability Company (LLC) in New York

ISLANDIA, N.Y. - Oct. 28, 2019 - PRLog -- Limited liability companies, more commonly called LLCs, are becoming more popular today due to the flexibility and protection they offer. However, there is a lot to know when forming an LLC, and if you do not do it properly, it can negatively affect your business down the road. Below are the basic steps anyone should take when forming an LLC in New York.

Choosing Your Name

This might be one of the most exciting parts of forming a business for any owner. However, while you may be thinking of puns and cute names, there are legal requirements to consider as well. In New York, any LLC must have the words "Limited Liability Company" or its short form, "LLC" in its name. You can choose a name and reserve it for 60 days by filing an Application for Reservation of Name with the New York Department of State Division of Corporations. There is a filing fee associated with this form.

Articles of Organization

The creation of an LLC in New York begins with you filing an Article of Organization. This is also filed with the New York Department of State Division of Corporations. These articles must state the name of the LLC, the county in which it is located, and the legal address documents can be mailed to.

Create an Operating Agreement

It is advisable to create an operating agreement that will state different policies and procedures. However, in New York, it is also the law. The agreement must be entered into at the time of, or within 90 days of filing the Articles of Organization. Although this is the law, the statute does not list any penalties for LLCs that do not prepare this agreement.

Publication Requirements

After the articles of organization are put into effect, the LLC must publish a statement about the formation of the LLC in two New York newspapers. Full instructions, such as which newspapers are designated by the county clerk, are listed with the articles of organization. After the notice has been published, a Certificate of Publication must be submitted to the New York Department of State Division of Corporations.

Learn About Tax and Regulatory Requirements

There are some tax and regulatory requirements that may apply to your LLC and it is important you are aware of them. These requirements include an IRS Employer Identification Number (EIN), business licenses, and annual state filing fees.

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