New business owners in New York often choose to organize their enterprises as limited liability companies, so that they can benefit from the legal protections that structure provides. To accomplish that with a minimum of difficulty, entrepreneurs need to understand the basic process for completing that type of NY LLC formation. That's the best way to ensure that all of the specifics for a successful filing are made in accordance with state law.
The first thing to do is to choose a name and file it with the Division of Corporations. New business names must be unique enough that they can be distinguished from all others registered in the State. That sounds complicated, but New York has a name database so that available names can be verified online. This type of company also needs to have the words LLC, L. L. C., or Limited Liability Company included within the name.
The Division also must have Article of Organization on file, laying out the basic details of the enterprise. This document must contain the company's name, county of location, and a valid mailing address. These Articles, along with the required filing fee, can be submitted either online or by regular mail.
New York differs from most states in its requirement that each limited liability company list the State as its Registered Agent rather than legal counsel or other entities. It does so that all legal summons, lawsuits, and similar documents are directed toward the appropriate state agency. That agency then delivers those documents for the company's consideration.
Entrepreneurs must also create an Operating Agreement. This document lists all of the members of the company, as well as their powers, obligations, duties, and extent of liability. While it does not have to be officially filed with the State, the Agreement is used for the next step of this business formation process.
With that Agreement, entrepreneurs have two options for obtaining a Certificate of Publication within the 120 days required by the Division. They can either have the document published in two newspapers or publish a notice that the LLC has been formed. The publishers then provide the company with the aforementioned Certificate that is then submitted to the Division.
The owners of any new LLC must also apply for an Employer Identification Number, except in instances where there is but one owner. In that case, he or she has the option to be considered as a sole proprietorship for tax purposes. All necessary licenses and permits must be acquired to comply with state regulations. For foreign enterprises, there are additional filings, so companies organized outside the State should contact state officials to verify those requirements.
Business owners in New York can enjoy tremendous opportunities and benefit greatly from the LLC status. There are many critical details, however, that can make the filing process more difficult than it has to be. Fortunately, those who research these simple requirements will find the process much simpler than they might have expected.
The first thing to do is to choose a name and file it with the Division of Corporations. New business names must be unique enough that they can be distinguished from all others registered in the State. That sounds complicated, but New York has a name database so that available names can be verified online. This type of company also needs to have the words LLC, L. L. C., or Limited Liability Company included within the name.
The Division also must have Article of Organization on file, laying out the basic details of the enterprise. This document must contain the company's name, county of location, and a valid mailing address. These Articles, along with the required filing fee, can be submitted either online or by regular mail.
New York differs from most states in its requirement that each limited liability company list the State as its Registered Agent rather than legal counsel or other entities. It does so that all legal summons, lawsuits, and similar documents are directed toward the appropriate state agency. That agency then delivers those documents for the company's consideration.
Entrepreneurs must also create an Operating Agreement. This document lists all of the members of the company, as well as their powers, obligations, duties, and extent of liability. While it does not have to be officially filed with the State, the Agreement is used for the next step of this business formation process.
With that Agreement, entrepreneurs have two options for obtaining a Certificate of Publication within the 120 days required by the Division. They can either have the document published in two newspapers or publish a notice that the LLC has been formed. The publishers then provide the company with the aforementioned Certificate that is then submitted to the Division.
The owners of any new LLC must also apply for an Employer Identification Number, except in instances where there is but one owner. In that case, he or she has the option to be considered as a sole proprietorship for tax purposes. All necessary licenses and permits must be acquired to comply with state regulations. For foreign enterprises, there are additional filings, so companies organized outside the State should contact state officials to verify those requirements.
Business owners in New York can enjoy tremendous opportunities and benefit greatly from the LLC status. There are many critical details, however, that can make the filing process more difficult than it has to be. Fortunately, those who research these simple requirements will find the process much simpler than they might have expected.
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