Frequently Asked Questions About Starting a New York LLC

There are a few different options when it comes to forming a business in New York. From a legal perspective, there are three main types of New York for-profit business entities: LLCs, S Corporations or C Corporations. For many entrepreneurs, we believe an LLC provides the right ratio of liability protection and ease of administration.

In order to form an LLC in the state of New York, there are some minimum requirements you must meet. These are a completed set of Articles of Organization, a business name and a fee you pay to the NYS Division of Corporations. We recommend taking some other steps before formally starting your LLC:

• Research your target market to make sure there’s a demand for the products and services you provide.
• Read industry guides to give you a starting point in your niche.
• Create a comprehensive business plan that defines the most important aspects of your New York business.
• Write an Operating Agreement that covers how you will run your LLC.

After you’ve created your New York LLC, you will also need to review your business license requirements, understand ongoing filing needs, set up a separate business bank account and get an accountant.

In New York, you register a business by completing and filing your Articles of Organization with the New York Department of State. You will need to gather information about your business, fill out the form and send it to the Department of State with your filing fee. This will formally create your LLC in New York. 

You can file your Certificate of Formation on the Secretary of State website or mail it in. Alternatively, Incfile can guide you through every step of the process by getting details from you and filing the form on your behalf — for free! There’s no additional charge for our basic LLC filing service, so all you need to do is pay the New York state filing fee.

At the time of writing the fee charged by the New York Department of State is $200. You can always check the latest New York filing fees here. You can also pay an additional $25-$150 for expedited filing through Incfile, which will create your LLC faster. The amount of the expedited fee is dependent on how quickly you want your filing processed. Some LLC filing services do charge you extra to prepare and submit your filing documents, but at Incfile, we do this for free — so you only pay the state fee.

Once you’ve gathered all of your information together and filed your Articles of Organization (or had Incfile do it for you), it can take up to a week for the New York Department of State to legally create your LLC. If you pay an additional $50 expedited fee, your LLC can be formed in as few as 24 hours, 8 hours, or 2 hours.

The name of your New York LLC needs to be unique, so you’ll need to check if it’s already being used by another business. You can do that via the New York Department of State website, or by using our fast and simple Business Name Search tool.

There are a few ways to register your New York LLC name. 

• If you’re creating a new business and your business name is unique in New York and meets state naming rules, you simply include it in your Articles of Organization.
• If you want to change the legal name of your business, file a Certificate of Amendment with the Department of State.
• If you just want to do business under a different name, file a Certificate of Assumed Name with the New York Department of State, or we can do that on your behalf.

If you want to prevent people from using your business name across the U.S., you can file a trademark for the name. We can help.

In other states, the formal documents that you file to form a corporation or LLC might be known as Articles of Incorporation. In New York, this document is called your Articles of Organization, and it performs the same functions as the Articles of Incorporation.

Yes, the state of New York requires new businesses to publish a Notice of LLC Formation which must be circulated in the county where the LLC's principal office will be located.

No, the State of New York does not have a Series LLC offering. A Series LLC is a special type of LLC where you create one “overall” business and then have individual, series LLCs within it, each counted as separate legal entities.

Yes, all legal business entities in New York, including LLCs, must have a Registered Agent at all times. Here at Incfile, we provide a free New York Registered Agent service for the first year if you file through us.

If you wish to change your New York Registered Agent you can do so by filing a Certificate of Change with the Department of State. Here at Incfile, we provide a free New York Registered Agent service for the first year if you file through us. If you’ve been using a different Registered Agent and want to switch to us, we’ll file the Certificate of Change on your behalf.

If you need to know the Registered Agent of a specific New York business, you can perform a New York Registered Agent search within the state's business database.

As an LLC, any business profits you earn will be reported on your personal 1040 filing and reported and taxed as “pass-through” income. You will typically need to pay:

• Self-employment or payroll tax on all business profits
• Federal income tax on profits after you meet your tax-free allowance
• Sales tax for selling taxable products and services

New York charges a 4 percent state sales and use tax on all retail sales, leases and rentals of most goods. You will also need to pay sales tax if you provide a taxable service. You can find a full list of taxable services here.

You will need to register as a sales tax vendor with the New York Department of Taxation and Finance. You can complete this process online.

The base rate for New York sales tax is 4 percent, and there may be additional sales tax depending on your region, county or city. Once you know your overall sales tax amount, calculate the value of all your taxable products and services. Then, multiply that by your sales tax rate to understand how much you will need to pay.

Once your LLC’s sales tax application is approved, you will receive a letter with instructions on how often you must file a sales tax return and pay sales taxes. Returns and payments may be due monthly, quarterly or annually.

Some businesses will need to pay a corporate franchise tax in New York, however it does not apply to LLCs unless your LLC is treated as a C Corporation for tax purposes.

The types of business licenses you need will vary depending on your type of business, industry, location and various other factors. We can research the types of business licenses you might need for you.