With the 3rd-largest economy in the nation and top access to funding, New York is a great place to launch your business. However, New York is a little bit trickier than some other states. Because of the required payment to newspapers for publishing the LLC formation per se. If you have made up your mind, this review will help you to figure out the overall cost from the start to the end.
LLC stands for Limited Liability Company. Forming an LLC is one of the simplest ways of structuring your business in order to protect your assets in case your business is sued. It also helps to make your business seem more credible to customers and creditors.
To form an LLC in New York, you will need to register your Articles of Organization with the New York Department of State Division of Corporation, which will obligate you $200. You can do the needful online or by mail. The Articles of Organization is the statutory document that formally creates your New York Limited Liability Company.
However, there are various steps necessary to form an LLC:
1. Name Your LLC
Naming your LLC is the first and crucial step. Your name defines your brand.
2. Registered Agent
Choose a registered agent who can help you carry out the formalities.
3. Articles of Organization
The next step is filing all the reports related to the organization with the help of your agent.
4. Publication Requirements
Some requirements are needed to be followed for publication.
5. Operating Agreement
You should make an operating agreement, which is a carefully laid out plan.
6. Obtain an EIN
Obtaining an EIN is necessary for any business and hence for an LLC as well.
How to Apply for an LLC:
You can always find the Paper forms on the New York State Department of State’s website.
Ways to do so are:
1. You may apply online.
2. Sign in or create an NY.gov account on the official website.
3. After you have applied, keep checking your application status.
The cost of an LLC is variable, because although there are a few fixed costs, there are fees plus one or more variable expenses:
You have to pay $250 in filing fees charged by the State of New York.
You might need a lawyer to help you prepare the documents that are included in this process. This adds more of added legal fees. Now, these fees are also variable and depend on the lawyer you appoint for the task.
You have to publication fees as well. New York, unlike most other states, asks you to publish LLC information. Depending on which publications the state government assigns to you, this could cost you an additional $1,800 or more to run the advertisements.
So, whatever you do, the minimum cost would probably be $1,800. That is when you take matters into your own hands and do it without an attorney and with less-expensive publications. This cost can increase to $3,000 if you hire an attorney.