Understanding Biennial Statement Notice for LLCs in New York

What is biennial statement notice?
Every two years, domestic and foreign corporations are required to file a Biennial Statement with the New York Department of State. This document essentially allows these corporations to maintain their entity status. To file, eligible corporations and Limited Liability Companies (LLCs) must pay a $9 fee.
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You must submit a biannual statement notice to the New York Department of State (DOS) if you are the owner of a Limited Liability Company (LLC) in that state. Every two years, the state is required to receive this declaration, sometimes referred to as a biennial report, in order to verify that your LLC is still in operation and in good standing.

How are LLCs taxed in New York with regard to this?

In New York, LLCs pay a different tax rate than corporations. The revenues and losses of an LLC are passed through to the owners and are taxed on their individual income tax returns as opposed to being taxed as a distinct company. The term “pass-through taxation” applies here. A few state taxes, such as the state franchise tax, may still apply to LLCs in New York.

How do I renew my LLC in New York keeping this in mind?

You need to submit a biennial statement notice to the DOS in order to renew your LLC in New York. The name, address, contact information for the registered agent, and a statement attesting to the LLC’s continued existence must all be included in the statement, which can be submitted online or by mail. There is a $9 filing charge per member, with a minimum registration price of $45 and a maximum filing fee of $4,500.

Is New York required to submit an annual report in this regard?

New York does not require LLCs to submit an annual report, in contrast to certain other states. Instead, the state mandates the filing of a biennial statement notice every two years.

In New York, how long is an LLC effective?

In New York, LLCs can exist indefinitely as long as they continue to submit the obligatory biannual statement notice and make all required payments. However, LLCs have the option to specify in its operating agreement a specified time period that will determine when the LLC will dissolve.

In conclusion, it’s critical to comprehend and abide by the state’s obligation for biennial statement notice if you own a firm in New York with an LLC. You may safeguard the life and prosperity of your firm by submitting the statement on time and keeping up a good standing.

FAQ
What if my LLC has no income?

You must still file the New York Biennial Statement Notice even if your LLC is not making any money. Even though there is no income to declare, the statement attests that your LLC is still in existence and still in operation. If the Biennial Statement Notice is not submitted, your LLC risk fines and dissolution.

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