Limited liability companies operate much like sole proprietorships or partnerships, while borrowing advantages from the corporate form of organization. New York, the home of Manhattan and the New York Stock Exchange, is a popular location to start a business, especially in particular industries such as finance. Familiarizing yourself with the process of incorporating an LLC in New York is the first step toward starting a profitable LLC in the Empire State.
Fit your business needs with the right LLC package
Register your business name with the Department of State. New York LLCs are required to include the LLC designation in their names. As with other states, names must also be original and not misleading to the public. Search the Division of Corporations' online business entity database to discover whether your desired name is already in use. Follow the link in Resources to find the database.
Draft a corporate operating agreement. Design your operating agreement to look similar to a partnership agreement. Set forth the major responsibilities and agreed-upon contributions of each founding member, and draft bylaws for how board meetings are run, if applicable. Also set forth how profit will be distributed among the founding partners, unless you are forming your company alone. Solo owners' operating agreements may be a bit thinner than partnerships, since all final decisions rest on a single person's shoulders and one person reaps all profits.
File your articles of incorporation with the Department of State. Standard articles of incorporation include the company's name, address and contact information of a company representative. See Resources for a ready-made template from the Department of State for your articles of incorporation.
Contact your county recorder's office for instructions on posting a public notice about your new LLC. New York LLCs are required to post notice in a county-specified news outlet for six weeks prior to registering the business. This allows time for existing businesses to speak up about possible name infringements or other issues. Obtain an affidavit of publication from a notary public after publishing your notice. The affidavit is simply a statement, made and signed by you before a notary, that you have published notice according to state law.
File a certificate of publication with the Department of State. A certificate of publication is simply a document that acknowledges that you have registered your company and filed the articles of incorporation. Attach your signed, notarized affidavit of publication to the certificate. Follow the link in Resources to find a certificate of publication template from the Department of State.
Register with federal and state tax authorities. Register for an employer identification number if you plan to hire employees. Register for New York state employment taxes with the Department of Taxation and Finance. Follow the links in Resources to find the IRS's online EIN application, as well as instructions and forms for state employment tax filings.