New York LLC Costs
Recommended LLC Services
An LLC, or limited liability company, is a business structure that gives business owners liability protection, special tax breaks and incentives, and a flexible management structure. Small business owners and entrepreneurs commonly think that forming an LLC in New York is overly complicated and too expensive. However, it is a straightforward process and affordable for most companies.
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Costs to start an LLC in New York
1
LLC Articles of Organization ($200)
- You must file your Articles of Organization with the New York Secretary of State.
- The cost to file your New York Articles of Organization is $200.
- New York does offer expedited services for LLCs. 24-hour – $25, Same day – $75, 2-hour – $150.
2
New York biennial statement fee ($9)
- You must file a biennial statement, or biennial report, with the New York Department of State.
- You will file your biennial statement online using the New York e-Statement Filing System.
- The biennial fee is $9 and must be paid every two years by the end of the month that your LLC was formed.
- Failure to pay your biennial statement fee may result in losing your good standing status and may face New York LLC dissolution.
3
New York registered agent fee (varies between $50 to $300)
- New York is the one state that does not require an LLC to obtain a registered agent for formation.
- The New York Secretary of State is a registered agent by default.
- However, hiring a registered agent in New York lowers your LLC formation costs and makes the process easier.
- You can appoint anyone, including yourself, as a registered agent in New York.
- The cost for a registered agent differs depending on the service, your business needs, and the state filing fees.
4
Fees to form a foreign LLC in New York ($250)
- If you have an existing LLC in another state and wish to expand to New York, you must register as a foreign LLC.
- You will complete the New York by filing an Application for Authority (Form 1361-f-a) and submit it to the New York Division of Corporations, State Records, and Uniform Commercial Code.
- The LLC filing fee to register your New York foreign LLC is $250.
5
LLC name reservation fee ($20)
- In New York, you do not have to reserve an LLC name before LLC formation, but it must be available for use.
- However, reserving a New York LLC name ensures that no other company can register it.
- LLC names in New York must be unique and not similar to any other company on file.
- You can reserve an LLC name in New York for up to 60 days before formation.
- You must complete the Application for Reservation of Name (Form 1233-f) and submit it to the New York UCC.
- The LLC cost for reserving a New York LLC name is $20.
6
DBA filing fees in New York ($25)
- The business acronym DBA stands for ‘doing business as.’ A DBA or assumed name is any registered name that an individual or business uses to operate under that is not the legal name.
- You are not required to register a DBA in New York as an LLC.
- However, there are benefits to a DBA in New York. And some banks will require you to file a DBA if your business is using a name that is not the company name.
- You will complete the Certificate of Assumed Name form (Form 1338-f) and submit it by mail to the New York SOS Division of Corporation.
- The cost to register a DBA in New York is $25.
7
Cost of certified document copies ($10)
- You will order your New York LLC documents through the Department of State.
- The cost for a certified LLC document in New York is $10.
8
Certificate of Status ($25)
- Banking institutions and money lenders in New York will ask for a Certificate of Status before allowing you to open a business banking account.
- You must read the instructions and follow the filing process. You can order your Certificate of Status by mail, fax, and in person.
- The filing cost for a Certificate of Status in New York is $25.
9
New York LLC publication fee (varies between $200 to $2000)
- New York law requires an LLC to publish a copy of the Articles of Organization or a notice in two newspapers. One must be weekly and one daily.
- The costs of publication vary widely because the significant expenditure comes from the newspapers and publications you publish. For example, publishing in New York City can cost upwardly of $2000, while smaller cities like Albany average around $80.
- You are required to publish the Articles of Organization within 120 days of formation.
- You must complete the Certificate of Publication (Form 1708-f) and submit it to the New York Department of State.
- You will include the affidavits of publication when submitting your form.
- The New York processing fee is $50.
Steps to start an LLC in New York
1
Choose a business name
It is important to consider a few things before you choose an LLC name in New York.
- An LLC name in New York must be distinguishable from any other company name in New York.
- An LLC name must meet all New York LLC name guidelines and requirements.
- For branding purposes, you will want to check the availability of a web domain.
You will use the New York Corporation and Business Entity Database to conduct a name search for your LLC name availability.
LLC name reservation fee
In New York, you are not required to reserve a name as long as it is available before formation.
An LLC name reservation is good for up to 120 days before formation.
You will complete the Application for Reservation of Name (Form 1233-f) and submit it to the New York UCC.
The fee to reserve an LLC name in New York is $20.
The cost to reserve an LLC name in New York State is $20 and good for up to 120 days before LLC formation. New York. does not require you to reserve an LLC name.
2
Appoint a New York registered agent
New York is the only state that does not require you to appoint a registered agent to form an LLC.
However, hiring a registered agent lowers your LLC cost and keeps the process simple.
The price for a New York registered agent or service varies beetween $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in New York is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a New York resident or a registered agent service authorized to conduct business in the state.
ZenBusiness
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-alone registered agent service. The price is $99 per year.
Northwest
- Total Out The Door New York LLC Formation Service Package – $56 month and includes:
- New York State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
LegalZoom
- Economy – $79 plus $153 New York filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
3
File New York Articles of Organization
You will file your New York LLC Articles of Organization with the Department of State.
You can file online using the New York State Business Express website.
Or you can complete Form DOS 1336 and submit it by mail, fax, or in person.
The cost to file Articles of Organization in New York is $200. Your submitted paperwork must include the Credit Card/Debit Card Authorization form if you file by fax.
New York does offer expedited services for LLC formation. 24-hour – $25, Same day – $75 2-hour – $150.
Mailing address:
Department of State Division of Corporations
State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231
Fax: (518) 474-1418
Form DOS 1336 will ask you for certain information about your LLC in New York State.
- LLC name and address
- Registered agent information
The fee in New York for filing your LLC Articles of Organization is $200.
4
Get a New York LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
An EIN is a 9-digit number that acts as a Social Security Number for companies for income tax purposes. The IRS, or Internal Revenue Services, issues EINs for no cost.
New York requires you to apply for an EIN if converting a sole proprietorship into an LLC.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a New York LLC
Financial professionals recommend keeping your personal bank account separate from your business banking account. It protects your personal assets and credit scores.
In New York, banks will require you to present your Articles of Organization, your operating agreement, and the EIN.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in New York
A business attorney is always good to have around when forming an LLC. It ensures that the process remains manageable and that someone is there to handle any future business-related problems.
Business attornies typically offer free consultations for first-time clients.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in New York will cost $300 per hour.
LLC taxes in New York
- In New York, an LLC is considered a pass-through entity. It means you will file your tax return rather than the LLC’s state tax return.
- If you sell physical products, you must register for a Sale Tax Certificate of Authority with the Department of Taxation and Finance. It is New York’s version of a seller’s permit.
- The New York state tax rate is 4.00%, and a max local and county rate of 4.875%
- Register for Unemployment Insurance Tax with the New York Department of Labor.
- You are required to also enroll for Employer Withholding Tax with the New York Department of Taxation and Finance.
- New York state taxes can get complicated. Your LLC may benefit from hiring a tax expert to avoid fines, fees, and possible dissolution.
Business licenses and permits in New York
In New York, business licenses and permits will vary depending on where your LLC is located, and the type of business you operate.
You will use the New York State Business Express to search for the business licenses you need for your LLC.
A business licence in New York varies between $50 to $150. The total cost of permits and licences will depend on where your LLC is, and the type of business you own.
Local government offices in New York will have different rules and regulations regarding permits and business licenses. You will need to contact the office for questions about the process, price, and office hours.
Notary public
You may find that some LLC documents in New York require a notarization from a notary public.
Most government agencies have a notary public in the office if you cannot find one.
Per New York law, a notary public can only charge a max of $5 per notorial act.
Employer obligations in New York
- You have specific employer obligations in New York if your LLC hires employees.
- The federal government requires you to verify that your employees are eligible to work in the US using Form I-9 from the USCIS Website.
- New York requires you to enroll in worker’s compensation insurance.
- You must report all new hires to the New York Department of Taxation and Finance.
- You can find a complete list of New York employer obligations.
Benefits of a New York LLC
- You simplify business banking when you form an LLC in New York State. Money lenders and banks will require you to open a bank account that is seperate from your personal account.
- Corporations and LLCs have different compliance requirements. Incorporation answers to shareholders and stock owners when they make decisions.
- In New York, an LLC is considered a pass-through entity. Your LLC’s earnings are only taxed through your personal tax returns.
- LLCs are not double-taxed like other business structures. C-corporations, for example, are double-taxed, while LLCs are not.
FAQs
How long does it take to register an LLC in New York?
It could take up to 7 weeks to receive your certificate if you register your LLC by mail. You can get expedited services for in-person LLC registration.
The cost for expedited services in New York is 24-hour – $25, Same day – $75, 2-hour – $150.
How do I dissolve my New York LLC?
You will need to dissolve your LLC in New York to avoid ongoing costs and fees. You will file your Articles of Dissolution by mail by completing the form.
The filing for LLC cancellation is $60.
Does New York have an annual franchise tax?
New York has an annual franchise fee based on business income, business capital, and fixed dollar minimum tax.
You can calculate your New York annual franchise using the New York Department of Taxation and Finance website.
Does New York have an annual report fee?
Instead of an annual fee, New York has a biennial statement fee.
The fee is $9 every two years by the end of the month that your LLC was formed.
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