All About New York LLCs
So you’re starting up a new venture. Congrats!
Forming a limited liability company (LLC) is a great way to reduce your personal liability for business expenses and losses. LLCs are also relatively straightforward to form and easy to manage. If all of that is interesting to you, read on to learn more about forming your LLC in greatest place in the world, New York!
Unique Aspects of Formation in New York
Before going any further, it’s important to note that New York has a few unique features when it comes to its LLC law. Consider these differences before you choose where to form your LLC.
One notable difference is New York’s publication requirement. New York mandates that newly formed LLCs publish a notice of formation in two newspapers—one daily and one weekly—for 6 consecutive weeks.
Additionally, New York requires LLCs to have in place a written operating agreement, executed within 90 days of formation. The operating agreement details, among other things, how the LLC is managed, how members and managers are paid, and how to handle dissolution of the LLC.
New York also has some unique limitations on its limited liability protection. Usually, a LLC’s owners (called members) are not liable for the LLC’s obligations except in cases of fraud or other misconduct. In New York, however, the 10 members with the largest percentage interest can be held personally liable for any services performed for the LLC.
Steps to Form an LLC in New York
Choose a Name: Your LLC name must be distinguishable from other registered entities and include “Limited Liability Company,” “LLC,” or “L.L.C.”
Designate a Registered Agent (?): You are not required to designate a registered agent in NY—the NY Secretary of State serves as your registered agent. You must, however, provide in your Articles of Organization an address to whom the NY Secretary of State can forward service of process. If you file your LLC with Ascend Launchpad, included in your filing is Launchpad Privacy Protection and Registered Agent for Life coverage, which means we list our name and address on the Articles of Organization.
File the Articles of Organization: You need to file Articles of Organization with the New York Department of State and pay the required filing fee of $200.
Report Ownership to FinCEN: Under the Corporate Transparency Act, you must file a Beneficial Ownership Information Report (BOIR) within 30 days of formation.
Execute an Operating Agreement: Within 90 days of formation, you must execute an operating agreement. Need help drafting it? Give us a ring!
Publication Requirement: Within 120 days of formation, you must publish a notice in two newspapers for six consecutive weeks and submit the Certificate of Publication to the Department of State.
By understanding these steps and the unique aspects of LLC formation in New York, you can position your business for success while ensuring compliance with state regulations. Forming an LLC not only enhances your business’s credibility but also provides essential protections that can facilitate its growth. We hope you’ll consider forming with us!