You’re in luck if you want to form a Limited Liability Company (LLC) in New York. The entire procedure may be completed online and is rather simple. Here is a step-by-step instruction sheet to get you going:
1. Pick an LLC Name: Picking a name for your business is the first step in forming an LLC in New York. Make sure the name you select is original and has not been taken by another New York-based business. On the website of the New York State Department of State, you can determine whether a name is available. 2. Submit Articles of Organization: You must submit Articles of Organization to the New York State Department of State in order to formally establish your LLC. Online or mail-in filing is an option. There is a $200 filing fee. A Certificate of Formation will be given to you once your Articles of Organization have been accepted.
3. Obtain an EIN: The IRS issues a special nine-digit number called an EIN, or Employer Identification Number, to identify your business for tax purposes. An EIN is required, and you may get one for your LLC online at the IRS website. Create an operating agreement for your LLC. An operating agreement is a legal document that describes who owns your LLC and how it will be run. Although it is not required by law in New York, it is strongly advised. A lawyer can draft your operating agreement for you, or you can do it yourself.
You’ll need to include details such the name and address of your LLC, the names and addresses of the members, the proportion of ownership for each member, and the distribution of profits and losses while filling out an operating agreement. Any particular policies or processes for your LLC should also be included.
5. ZenBusiness: ZenBusiness is an organization that offers services for forming LLCs, such as submitting Articles of Organization and drafting an Operating Agreement. Starting at $49 plus state costs, they provide a range of options. As a result of its numerous good client testimonials, ZenBusiness is a well-liked option for New York LLC formation.
6. Single-Member LLCs and 1099s: An LLC that has only one owner is referred to as a single-member LLC. You are not obligated to issue yourself a 1099 form for tax purposes if your LLC has just one member. If you did hire any contractors or employees, you must give them a 1099 if you paid them $600 or more in the tax year.
In conclusion, creating an LLC in New York is a rather easy process. Pick a distinctive name, submit your articles of incorporation, get an EIN, draft an operating agreement, and think about hiring a business like ZenBusiness to help. Additionally, you are exempt from issuing a 1099 form to yourself if your LLC has just one member. You’ll be well on your way to managing your own LLC in New York once you’ve finished these steps.