Are you thinking of doing business in The Big Apple? New York is home to millions of small businesses teeming with millions of employees? This state is additionally the third largest economy in the country. You can thus imagine how much potential it has in store for you.
Here are some reasons why many businesses flourish in this city:
Are you ready to open an LLC in New York? Here is what you need to do:
Before naming your business, you have to decide on which structure you will follow. The laws governing the naming of an LLC are different from those governing a corporation. Choosing a structure comes down to how much protection you want, whether you wish to bring more people on board and how complex you want the operations to be. Here are some of the considerations at a glance:
Are you confused as to if you should create LLC in new York or choose an informal structure such as a partnership? Here are some characteristics that make your operations best suited for formality:
Below are some advantages of going the formal route:
Once you have settled on a structure that works for you, the next step lies in naming it. At this point, the assumption is that you are working with an LLC, as this article will focus on this type of business.
The one thing you should keep in mind is what you want to communicate to your customers. In some cases, you can decide to use a different legal name from that of your brand. It all depends on what you want. Please note that for separate naming, you need to file a DBA. This filing also applies where you have one legal name but operate under different brand names.
Once you come up with a possible name, you have to make sure that it is different from those registered at state and federal levels. You can do the NY LLC name search on the New York Department of State website. Keep checking until you are sure that nobody else has rights to the name. Moreover, you should look into if anyone has a trademark to the same.
You should also consider checking if anyone has registered a website using the preferred name. It would be quite challenging for you to start a site using a name that is different from that which your consumers know.
Having covered all these bases, you can then ensure that your name meets the following conditions:
To ensure nobody else can use your name, you can reserve it at a fee of $20 by making an application to the following address:
New York Department of State, Division of Corporations
One Commerce Plaza, 99 Washington Avenue
Albany, NY 12231
You are probably aware of the need to have an agent representing your business. In many states, this agent (whether company or individual) is your point of contact with the authorities. However, that is not the case in the Big Apple. Here, the Secretary of State serves as your agent by default. However, you are free to elect someone else to take up the role. Please note that this chosen person or company will not be the primary point of contact, but rather the secondary person of contact. Thus, for any legal action taken against your business, the secretary of state will still be the first to receive the same. Where you have an elected registered agent New York, this information will be forwarded to the designated person.
Your New York registered agent LLC is in charge of the following responsibilities:
You can choose to receive legal documents or you can designate someone else to take up the role, based on your preference. That is to say that anyone can be your registered agent NY provided that they:
Most importantly, you should make sure that the NY registered agent is capable of taking on this task with the seriousness it deserves. Without compliance, you can end up losing your license to operate. It would thus be a good idea to have a professional service handling these processes.
Do you know what drives many people to having agents for their companies? The state laws! If you are new to doing business or haven’t been in the murky legal waters a long time, you can easily get confused with the requirements. It is thus important that you find a knowledgeable third party to handle these intricacies on your behalf. Here are some good registered agent NY state options:
ZenBusiness – here is yet another service you can count on, that works not only in NY, but other states as well. Thus, should you choose to expand your operations now or in the future, you can rest assured that this company would cover you in another region.
Harbor Compliance – being relatively new on the market, it has served tens of thousands of businesses. The biggest advantages are, first, its premium customer service that assigns each client to a specialist, so you can directly contact a Compliance Specialist via call or email. Secondly, you will get assistance at every level of your business formation process and the company will handle all your legal documents.
BizFilings – this online service is well known for its guides and tools for small businesses. It can help with the formation of a wide range of business types, including LLCs, corporations, and even nonprofits, and guarantees compliance with the state where you are going to operate. One more big plus is that there are no hidden fees.
LegalZoom – with the experience of two decades in the industry and millions of customers, this reputable service knows all your business needs and how to succeed. However, if you are not satisfied with its services, you can get all your money back within 60 days of the purchase.
At this point, you will not have elected an agent yet. It is now time to do this as you give more details as to your business. These include its purpose, duration, and other aspects that are integral to its formation. You do this by filing the Articles of Organization with the state. Once you get approval, you are free to start doing business. Without approval, you have to go back to square one and start again. Keep in mind that the application fees are non-refundable, hence the need to get it right the first time.
First, you need to get the forms which are available online on the New York Department of State website. You can choose to fill them online or you can download and fill the manually before forwarding them to the state. The forms include the following information which you need to fill before filing:
We will consider all the filing options as follows:
You can fill the form on the website – New York Business Express.
Alternatively, you can complete the PDF form and send it to:
New York State Department of State,
Division of Corporations, State Records and Uniform Commercial Code
One Commerce Plaza, 99 Washington Avenue,
Albany, New York 12231
You can also deliver the form to:
One Commerce Plaza, 99 Washington Avenue,
Albany, New York 12231
All application methods will set you back $200. Online applications take a shorter period. Mail submissions, on the other hand, take about 7 days. If you would rather skip the waiting period, you can expedite the process at a fee.
Once you get your license, you should publish a notice of the same on two papers- one weekly and one daily. It should take place within 120 days of registration; else, you could lose your license. The paper will give you an affidavit which you should send to:
New York Department of State,
Division of Corporations, One Commerce Plaza,
99 Washington Avenue, Albany, NY 12231
Additionally, you need to pay a $50 filing fee to the state. Now, once again, we go back to the agent. Publishing can cost you as much as $2000. That is why it helps to engage an agent as cited in step 2. The company can do this on your behalf in another state, enabling you to save quite a lot of money.
Filing is in your best interests- failure to do so means that you cannot engage the courts to sue when you have a business disgruntlement. You would have to file first before going in to seek justice. Secondly, you lose out in your good standing. That means that if you ever get into trouble, you will already have set a track record of being in the wrong. It is thus more likely that you will end up on the losing side and may not enjoy as much protection as you should.
It can be hard to part with the required fees, more so where you do not have a third party covering part of the amount. Here are two ways to try and save some coins:
It helps to take note of the fees charged per county as well as the papers you can use in these regions.
You must protect your business from external as well as internal forces by having some laws in place. Without such policies, you will be at the mercy of the state. Suppose you have some disagreements down the line, you would have to solve this using default rules. Unfortunately, these are not likely to be in your favor as they tend to be generalized. You need to decide beforehand which laws you will use to determine conflicts if and when they arise.
The state will not require you to provide such agreements during your licensing. But if things go south, this is what you can use to protect yourself and other members from general rules that would prove unfavorable to your business.
Here is what you should include:
Not only will these rules make day-to-day operations easier, but they will also afford you protection in the event of legal wrangles.
If you don’t want to write the Operating Agreement yourself, you can hire one of the best LLC services. They will create the most appropriate document for your company
An EIN NY is an employer identification number that enables the IRS to keep tabs on you. You should apply for one after you are done getting your license. Always make sure that you have your license first before making an application. Else, you will end up with an ID that does not serve you.
Not every startup needs to apply for EIN NYS. If you are not sure if you should get one, have a look at these conditions:
There are some benefits to this ID, even if you do not have to get one. These include:
You can get all the information you need from this website. EIN NY state filing options are as follows:
This is the best approach when you are short on time. To send a task to get an EIN, use the website www.irs.gov
However, you may lack adequate information to fill the required fields. In this case, you can use the options below:
This process gives results in about four weeks. Manually fill the Form SS-4 and send them to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fill the forms before sending them to (855) 641-6935
An LLC comes with the added advantage of separating you from the business operations. That means that you are not liable for what goes wrong in the business. Here is a way you can mess that up- using one account! If all your income goes to your personal account, you will be personally liable if something goes wrong at work. It thus follows that you should open a bank account for LLC for the following reasons:
Please have the following documents ready:
You might need to have more than one member present during the opening, depending on the rules set out in your agreement. It also helps to note that financial institutions abide by different rules. What works for one bank may not work for another and you should always call beforehand to understand your requirements.
Wouldn’t it be nice to operate in the state without having to pay a dime? Unfortunately, that is not the case and you need to comply with the law as follows:
First, you need to understand if your type of operations requires a permit. You might even find that you need to undergo some training before you can start operating.
You have to report your income each year to the IRS, and the report depends on how you pay yourself as an owner. You remember the part where we said that taxes are flexible? This point comes in handy, as it affects even how you file your returns come the end of the year.
These taxes fall under employer, sales and industry specific categories. You should understand what you are liable for, depending on what you do. For example, if you have hires, you need to look into employer taxes.
Additionally, every LLC in NY is subject to an annual filing fee. What you pay comes down to how much you make in a year.
Every two years by the end of the month of your company’s formation, you need to file a statement with the state, covering what you do. This filing costs $9 and can be done online.
Yes. Unlike some competitors, InCorp has its own professional team. They don’t send clients to a large call center, so you don’t have to wait very long for a response.
Other advantages of InCorp Customer Support are:
– The opportunity to have service in Spanish;
– They offer extended support hours (9 am-9 pm ET M-F).
To consult with InCorp Customer Support by phone, call 1–800–2INCORP.
If you prefer email, use the Contact Us page on the company’s website. Note that on the same page you can find web chat to ask your question to an InCorp specialist.
Timelines vary from state to state, so processing times can range from a few days to a couple of weeks.