In New York, the procedure to create an LLC can take a few days to a few weeks. The first step is to pick a name that is original and hasn’t been taken by another company. You must submit Articles of Organization to the New York Department of State after deciding on a name. The filing fee for this is $200, and you can submit it online or by mail. You must post a notice of your intention to incorporate an LLC in two newspapers in the county where your company is located after submitting the Articles of Organization. Within 120 days of the Articles of Organization’s filing, this must be done. You will get a certificate of publication once the notice has been released, and this document needs to be submitted to the Department of State. In addition, you must receive an Employer Identification Number (EIN) from the IRS and any other required licenses and permissions. If you now have employees or want to in the future, you must obtain an EIN for tax purposes. Cons and Advantages of an LLC
An LLC provides its owners with limited liability protection, which is one of its main benefits. In the event that the firm is sued or accrues debt that it cannot pay, your personal assets will be safeguarded. Due to the fact that they are exempt from the double taxes that corporations must pay, LLCs also have tax advantages. Instead, the business’s gains and losses are transferred to the owners’ individual tax returns.
But becoming an LLC has certain drawbacks as well. One drawback is that establishing an LLC can be more expensive than doing so for a sole proprietorship or partnership. Additionally, LLCs need to go through more formalities and documentation, including holding yearly meetings and maintaining records.
Yes, a registered agent may also be an LLC’s owner. In reality, a lot of people opt to handle the paperwork and legal needs of their LLC through a registered agent service. A registered agent is a person or business chosen to receive court papers like subpoenas and lawsuits on behalf of the LLC.
Risks Associated With Being a Registered Agent
There are hazards associated with becoming a registered agent, despite the fact that it can be a lucrative profession. Important legal documents must be received by and forwarded to the LLC’s owners via the registered agent. If they don’t, the LLC risk suffering severe repercussions including missing court dates or losing legal rights.
In conclusion, establishing an LLC in New York can have a number of advantages, but it’s crucial to understand the time involved in doing so as well as the benefits, drawbacks, and risks of doing so. You can decide whether an LLC is the best choice for your company by doing your homework and talking to a legal expert.