LLC stands for limited liability companies in New York, which are quite easy and affordable to form. This is an organization which is made up of one or more people; the ones who make an LLC or the owners are known as the members rather than shareholders or partners. To Form LLC in New York one needs to file articles of organization with the department of state.
Eligibility for forming an LLC
Given below are the two eligibility requirements to form an LLC in New York:
- A person should be a New York state resident.
- It should be a business entity that is located in the New York State.
Benefits of an LLC
- It gives a structured design for small businesses.
- The filing process is easy.
- Registrations- One needs to file the articles of organisation with the New York department of state with all the information such as the LLC name, registered agent address, taxpayer’s identification number, licenses and permits with the member’s signatures. One should not forget to include the filing fee.
- There is limited liability for members.
The specifications for forming a New York LLC are:
- Publication- Business entity needs to publish a copy of the articles of organisation the filed with the department of state or a notice that is related to the formation of an LLC. The information that needs to be published in the document should include the name of the LLC, which should match with the name that is filed with the department of state. The publishers should also provide affidavits of publication to the department of state along with the necessary fees.
- The fee- All new LLC’s are required to submit their articles of organisation form and a certificate of publication with the fee that has to be submitted which usually is 200 dollars and 50 dollars respectively.
- The time period- Usually, it takes about six to seven weeks to fulfil the requirements of the New York LLC formation which includes the time period of processing the forms. But the businesses are given 12 days to publish in two newspapers for six consecutive weeks.
- Naming- The LLC naming requirements are quite strict; the name of the LLC must be different and distinguished from other LLC’s; which can be approved by state agencies and must include certain words in order to qualify and to get approved by the department of state. One can even check the availability of the name before you file you documents.
The formation requirements are simple but every LLC that is being formed with more than one member is required to have a liability operating agreement between members. These terms only govern the income, taxation and roles of each member in the LLC. In simpler terms LLC is a hybrid business structure that brings together the elements of a corporation and also limited liability partnerships. So make sure that you read and study the process of forming an LLC before starting it.