Setting up an LLC is a great choice if you want to launch a business in New York. An LLC, or limited liability company, is a type of business entity that shields its owners, usually referred to as members, from personal liability. Additionally, an LLC is simple to establish up and offers a flexible tax structure. We’ll walk you through the procedures to form an LLC in New York in this article.
Select a Name for Your LLC in Step 1 The first step in creating an LLC is picking a name. It must be a brand-new name that hasn’t been registered with the New York State Department of State. On the department’s website, you may see whether a name is available. Once you’ve decided on a name, you can submit an application to the department to reserve it for 60 days.
Step 2: Submit Articles of Incorporation The Articles of Organization must then be submitted to the New York State Department of State. Online or mail-in filing is an option. Online filing costs $200, while mail-in filing costs $250. The LLC’s name and location, the registered agent’s name and address, and the members’ names and addresses should all be listed in the Articles of Organization.
Obtain an EIN in Step 3 Employer Identification Numbers, or EINs, are special nine-digit numbers given out by the IRS to identify your company for tax-related purposes. An EIN is required for each LLC. On the IRS website, you can get an EIN for nothing. An EIN is required to submit taxes and open a business bank account.
Opening a business bank account is step four. It’s crucial to register a corporate bank account in order to keep your personal and business finances distinct. To open a business bank account, you must present your EIN as well as the documentation establishing your LLC. Be ready because certain banks could want additional paperwork or information.
A personal bank account is permissible for an LLC.
Using a personal bank account for commercial activities is not just not advised, but it is also not unlawful. Managing your finances can be challenging if you combine your personal and corporate accounts. It might also get you into legal trouble. Opening a company bank account is the greatest way to keep your personal and business finances apart.
How Long Does It Take in New York to Form an LLC?
Depending on the registration procedure, forming an LLC in New York can take some time. Online filings are processed in two to three days. Processing time for mail-in filings might be up to two weeks. A Certificate of Formation, which serves as legal documentation of your LLC’s formation, will be provided to you.
In conclusion, establishing an LLC in New York is a simple procedure. You must select a distinctive name, submit your articles of incorporation, get an EIN, and create a business bank account. Additionally, it’s critical to register a company bank account in order to keep your personal and corporate finances distinct. Depending on the filing process, forming an LLC in New York can take a while. You are now prepared to create your own LLC in New York thanks to this detailed tutorial.