Here's a step-by-step guide on how to create an LLC (Limited Liability Company) in New York, with a glossary of business terms and sources cited where applicable*:
- Choose a name for your LLC: The first step in forming an LLC is to choose a name for your company. The name must be unique and not already in use by another business in the state of New York. You can check the availability of your desired name using the New York Department of State's online database.
- Designate a registered agent: A registered agent is a person or company who will receive legal and official documents on behalf of your LLC. Your registered agent must be located in New York and have a physical street address (not a PO Box). You can hire a registered agent service, or you can act as your own registered agent.
- File Articles of Organization: To form your LLC, you need to file Articles of Organization with the New York Department of State. You can file online, by mail, or in person. The filing fee is $200. Your Articles of Organization must include the name of your LLC, the address of your registered agent, and the purpose of your LLC.
- Obtain an EIN: An EIN (Employer Identification Number) is a unique number issued by the IRS for tax purposes. You will need an EIN to open a business bank account, hire employees, and file taxes. You can apply for an EIN online for free on the IRS website.
- Create an Operating Agreement: An Operating Agreement is a document that outlines the ownership structure and operating procedures of your LLC. It is not required by law in New York, but it is highly recommended, especially if you have multiple members. You can create an Operating Agreement yourself or hire an attorney to do it for you.
- Obtain any necessary permits and licenses: Depending on the nature of your business, you may need to obtain permits and licenses from the state or local government. You can check with the New York State Business Permit Assistance website to see what permits and licenses you may need.
- Open a business bank account: Once you have your EIN and other necessary documents, you can open a business bank account in the name of your LLC. This will keep your personal and business finances separate and make it easier to keep track of your expenses. Guava is here to help!
It's important to note that this guide is for informational purposes only and does not serve as legal or financial advice. We strongly recommend consulting with a professional advisor for personalized guidance.*
- LLC: Limited Liability Company. A type of business structure that combines the liability protection of a corporation with the tax benefits of a partnership or sole proprietorship.
- Registered agent: A person or company designated to receive legal and official documents on behalf of a business.
- Articles of Organization: A legal document filed with the state government to formally establish an LLC.
- EIN: Employer Identification Number. A unique number issued by the IRS for tax purposes.
- Operating Agreement: A legal document that outlines the ownership structure and operating procedures of an LLC.
- Permits and licenses: Legal authorizations required by state or local government to operate certain types of businesses.
- Business bank account: A bank account specifically for business transactions, separate from personal accounts.