How to form an LLC?
An LLC is a limited liability company that is formed by filing articles of organisation with the department of state. The owners of an LLC are the members and not the shareholders or partners. LLC is known to be a business structure with flexible organisation; it also gives limited liability for its members. The members can be individuals, corporations, other LLC’s and foreign entities. The best part about forming an LLC in New York State is that there is no maximum number of members. It is also known for bringing together elements of a corporation and limited liability partnerships.
Tips for putting up an LLC in New York State
- Select the business name- One can choose any business name as long as it ends with Limited Liability Company or with any abbreviation LLC or L.L.C. The name of a LLC cannot use restricted or prohibited words and phrases; you can also do a name availability inquiry with the department of state to make your work easy and to make it distinguishable from other LLC’s.
- Assign an agent- One can choose an additional registered agent if you do not want the state of New York to automatically act as your company’s registered agent. Irrespective of the agent you to choose to serve but you need to provide a New York residence address where you can be reached if a suit is filed against your company.
- Tax licenses and permits- One should make sure that the company has all the tax licenses/ permits that are needed based on the type of business. You can check with small business offices or with the branch of the city government. There are online business license service providers so one can make use of that also.
- Employer identification number- In case there are two or more members in an LLC then the company needs to obtain an Employer identification number (EIN) from the IRS for tax purposes.
- Agreement- One should make sure that they have a limited liability company operating agreement for filing forms as LLC operating agreements. The agreements need to be filed within 90 days of filing the DOS 1336 form.
Filing an LLC and the fees
- Forms- For forming an LLC in New York State one needs to fill out the articles of organisation form but one needs to fill in the following information in it; the address in New York where the member of the state can be reached, it should also contain the signatures of all the member and the LLC name that meets all the said requirements.
- Fees- The processing fees is generally 200 dollars and submission and filing fees is 50 dollars; but the fee can change with time. The fees can be paid through cash, check, through money order or by VIS and MasterCard.
These are requirements that need to be fulfilled and kept in mind while forming an LLC in New York State. If all these requirements are fulfilled then there is no problem with forming an LLC.