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LLC

New York LLC: How do I start a small business in New York?

New York is a great place to start your business. Out of all 50 states in the United States of America, New York is ranked

  •  Third in access to venture capital.
  •  Seventh in lowest corporate taxes.
  •  Third in the largest economy.  

These points make New York very suitable for starting a small business. However, you should have a clear idea, intent, and firm decision to start a business. Here is the guide on how to start an LLC in New York.

New York LLC

 STEPS TO STARTING YOUR NEW YORK BUSINESS

  1. Choose an Idea

It would be best if you had an original idea to begin with. This idea of yours should be from your mind or your partner. It should be unique and profitable. You can choose to work upon an already existing idea or make something new, out of the blue. 

  1. Plan Your Business

It would be best if you plan your business from A to Z. Whatever you have in mind, you need to document it and make sure you go through it again. This method will make sure neither you miss anything, nor you make any fatal mistake.

  1. Form Your Business

Registering your New York company as a legal business entity is what is forming your business. It can be as an LLC or a Corporation. This increases the credibility of your company and protects 

  1. Register for Taxes

You should obtain your EIN and register for taxes after forming your business. 

Registerion with the Department of Taxation and Finance is necessary and required to collect sales tax. Although registering is a simple procedure and free of charge, you might need more information than you would to get an EIN. 

  1. Open a Bank Account

Getting a business bank account and business credit card is essential. You do not want your money and assets to be in danger in case your business is sued. 

  1. Set Up Accounting

Annual tax filings and checking up all the profits and losses can become a burden if you do not have accounting software in place. 

  1. Obtain Permits & Licenses

There are regulations set up by federal, state, and local governments. You have to comply with them to make sure your business is legal. If you are going into business, do consult a lawyer about necessary permits and licenses.

  1. Get Insurance

Insurance is necessary as there are always chances of your business model to fail. In such cases, insurances save you from going bankrupt. Also, some laws make sure you are under specific necessary protection. 

  1. Define Your Brand

Your brand should stand out from other brands in the competition. It would help if you convinced people how different your brand is and why people should go for your brand rather than others.

  1. Establish a Web Presence

Web presence and digital marketing are significant in today’s digital world. It would help if you increased your outreach through your web presence and Google profile. 

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LLC

How much does an LLC cost in New York?

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.

LLC

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.