Drive and enthusiasm aren't enough to start a business; you need a plan to achieve the desired success. With this in mind, Hispanos Emprendedores will teach you how to form an LLC in New York.
Why start a business in New York?
New York is an ideal territory to develop businesses and companies, whether you are considering forming an LLC (Limited Liability Company) or a corporation. From there you can reach other national and international markets.
You could also benefit from the incentive programs offered by the state to promote small and medium businesses.
In New York, as well as in the rest of the United States, there are several options to legalize businesses. There are sole proprietorships and general partnerships that file in the county where they will operate.
Business corporations that need a certificate of incorporation and register with the Department of State. Likewise, that the limited liability companies that merit the presentation of the articles of organization. While, limited partnership corporations consign the limited partnership certificate.
There are many opportunities, given that it's the fourth most populous state in the country, with 62 counties, the largest being New York City. It's home to a wide variety of small, medium, and large businesses, including ABC, Avon, CBS, Marvel Comics, and MasterCard. It accounts for 7,2% of all businesses in the country.
Advantages of registering an LLC in New York
You must be clear that the LLC is a type of business that grants protection to the owners. That is, the company is separate from the assets of the owners with its own rights and responsibilities.
LLCs are easy to register in New York State . There are some expenses involved, but they are generally inexpensive to maintain. They offer personal protection by keeping personal and business assets separate. If the company is sued or has debts, the plaintiff will not have the right to seize personal assets.
On the other hand, you pay tax as a sole proprietorship or partnership (transfer tax). In other words, they pass from the business to the owners as personal income tax. It is a way for small businesses to reduce the tax burden.
These types of businesses are more flexible in terms of the formation of their organizational structure. They are not required to form a board of directors, or assign corporate officers, nor do they keep minutes. In addition, they can have an unlimited number of owners and profit sharing is easier.
Having a separate entity gives you the option to create a new credit profile . The owners' credit history is not linked to the LLC. Furthermore, it provides a business identity, because no other company in the state can use your business name. It also allows you to own another LLC, corporation, or any other type of legal entity.
How to form an LLC in New York
Naming the company is the first step in registering it. The name must be unique and then make sure that no other business has it. It must bear the phrase "limited liability company" or its abbreviation LLC. You can reserve it for 60 days for a cost of 20 dollars.
Next, choose a registered agent . This agent will accept tax documents and notices on behalf of the owner(s). The agent's name must appear on the certificate of training; otherwise, the Secretary of State will act as the agent.
Next, it presents the articles of organization, they are the documents that are consigned to officially register the company with the New York State Department. They can be sent by mail, fax or online, the latter option is recommended because it is faster. If you opt for the other two, it would take between 3 and 4 weeks.
The filing fee is $200, payable by cash, check, money order, MasterCard, Visa, or American Express. The expedited processing service offered by the New York State Department of State Division of Corporations is for urgent documents.
You can use it by paying an additional fee of $25 and it will be processed within 24 hours. If it is for the same day, it is $75 per document and $150 within 2 hours. To apply online, create an account at NY.gov. When you want to check the status just log in.
Once the articles of organization are approved, those completing the process will receive an Employer Identification Number (EIN). With these two requirements met, it is advisable to open a business bank account. The EIN can be obtained at https://www.irs.gov/.
New York requires that within 120 days the LLC must publish a copy of it or a related notice in 2 newspapers. The printout must be sent to the Department of State along with the affidavit of publication and $50
It should be noted that newspapers are appointed by the clerk of the county in which the business is located. Likewise, it is suggested to draft an operating agreement that will only be legally binding on the members.
More Obligations of LLCs
The New York State Department requires LLCs to file a biennial return. It is done online and the fee is $9. The companies that request it receive a notice by mail when the term for the presentation of said declaration expires.
They are also required to conduct their business under their legal name. If they choose a name that does not appear on their documents, they must present a fictitious name certificate. This can be obtained from the Department of State for $25.
After completing the registration, investigate what licenses or permits you need. Some business activities require authorization from state or local governments. Contact the appropriate county clerk to find out which ones you should apply for.
Also, check with other agencies to see if you'll need to obtain any additional licenses. Among the most important are the New York State Department of Labor ( www.labor.ny.gov/home/ ) and the New York State Workers' Compensation Board (www.web.ny.gov).
Surely you have to take out unemployment insurance and Workers' Compensation. The first is processed in the Department of Labor and the second in the New York State Insurance Fund or in a private company.
Depending on the structure, location and employees, disability and health insurance may be necessary.
To comply with state licenses, register the business at https://my.ny.gov/SelfRegV3/selfreg.xhtml?app=nyappelic. It is possible to manage this entire process online.
Additionally, register him as a New York State sales tax provider . Request a Sales Tax Authority Certificate from the State Department of Taxation and Finance.
Support for ventures and New York
Before starting business operations, look for information about the resources that the state offers to help companies. It can be financial support, advice and training.
Apply for support at the New York State Small Business Development Center. As well as in the NYS Empire State Development.
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