New York LLC Formation Guide

What am I going to be looking at for ongoing fees to New York?

The New York Department of State requires a biennial report, which is due on the last day of the month filed. The report will cost $9.00 every 2 years.

What are the New York business taxes?

The New York Corporate net income tax rate is 7.1% . There is a minimum tax of $100-$1,500 depending on your County and assets.

The New York personal net income tax rates are:

$0-8,000.00     4%
$8,000.00-11,000.00     4.5%
$11,000.00-13,000.00     5.25%
$13,000.00-20,000.00     5.9%
$20,000.00-200,000     6.85%
$200,000.00-500,000.00     7.85%
$500,000 +     8.97%

There are also a lot of local income taxes with an average rate of 1.17%.

The average New York sales tax rate is 8.3%. The State has a 4% tax, but the average local tax is 4.3% making a total of 8.3%.

What is required to file New York Articles of Organization?

To form a New York LLC, you file New York articles of organization. The New York articles of organization cost $200.00 with the New York Department of State. These can be basic or complicated. We custom draft your New York articles of organization when you hire Northwest to form your New York Company. The basic requirements are:

  • The business name must have a LLC ending or variation of it.
  • The New York company name must be different than already registered New York companies.
  • The county location of the New York Corporation.
  • The name and office address of the registered agent or address for them to send any correspondence or documents in New York.
  • The New York organizer must sign.
  • Filed by name and address.
New York requires original signatures on filings by mail or in person. The original will come back to the return address on the form.

What's the actual process to start a New York LLC?

  1. You file the articles of organization for a New York LLC with the New York Department of State.                                                           Publication is required for all LLC filings in New York. Publication must be done once a week for six successive weeks in two newspapers in the county in which the office of the limited liability company is located. One newspaper must be "printed daily" and the other "printed weekly." The newspapers must be designated by the county clerk. The Affidavit of Publication, Certificate of Publication, and filing fee must be filed within 120 days after formation or qualification.
  2. You obtain a federal tax ID number with the IRS after you have confirmation from New York that the articles are completely filed.
  3. You should be able to open a business banking account with these two items.
  4. You register your New York Company with the Department of Revenue or Labor if you're going to have employees or need to withhold sales tax.
  5. You obtain a trade license, if you actually need one. (Most businesses don't.)
  6. You obtain a local City or County general license, if you need one.
  7. You obtain a local trade license, if the City or County you're going to be working in requires it.
  8. If you're going to have an office or shop, you might need an approval from the city zoning for your type of business in that location.

Why do we pay taxes in New York when other websites don't?

When we form a New York LLC, we'll be your New York LLC agent. That means our New York office is in Albany, New York, and we have a physical presence in New York, so we have to pay income tax off the money we derive from doing business in New York. It's called "Nexus." If you're shopping around for a New York LLC formation service, we would challenge you to call one of the other LLC filing services and ask the person that answers the phone if they have nexus in New York. If they don't, or don't have any idea what that word even means, that would be kind of like hiring a real estate agent in Bangor, Maine, to sell your home in Buffalo, New York. Just doesn't sound right does it? If they do have nexus in New York, then that's Great… At least you're then comparing us with another company that should know what they are doing, and you've ultimately done yourself a favor. While you're on the phone comparing apples to apples, you should ask the company what the name and address will be of the New York registered agent, and how much the renewal bill will be. If they can't tell you the name, the town the office will be in, and if it's not their own name, it means you're ultimately signing up with someone you don't know.

We've seen other sites with packages that include New York LLC agent service, or offer it free for 6 months or a year, or it's just built into a "Package." But you're paying a website, and they then list another person or New York company as your agent. Then you get a bill at the end of the 6 months or year from some random company you've never heard of for a lot of money. Our New York registered agent service is $125.00 a year, has no hidden weird fees, and the first year is included in our New York LLC service.

What do I get with your New York registered agent service?

  • 1 year of service from the time of hire.
  • Annual report reminders for your LLC in New York.
  • Annual report calendar in your online account to track your due dates in New York.
  • Online account for contact info, corporate documents, documents we receive on your behalf, annual report dates, calendar, and end of service dates.
  • Any lawsuits or service of process are uploaded to your account immediately, in full, for your viewing. We can notify your attorney at the same time if you would like. We can notify up to 5 different people and your attorney of your lawsuit instantly.
  • Added privacy and identity protection.
  • All junk mail is shredded.
  • Same day complete scan of received documents. (Other registered agents forward items received locally to their National headquarters by mail, and then scan them. You get everything the same day from us.)
  • No cancellation fees.
  • No forwarding fees.
  • We don't keep your credit card on file and automatically charge you for anything.
The requirements of a registered agent are being open during normal business hours for someone (A process server or Sheriff) to walk in and hand deliver a document or notification to you. Assigning someone, or a website you don't know to this role means that if you get a notification by mail or someone delivers a letter or a lawsuit to that person or business, its legal proof that you've been notified, regardless of if it actually gets to you. There are only 5 national registered agents, and there's thousands of LLC forming websites, so the odds are that if you pay one of the thousands of LLC formation websites, they've got a discounted referral fee plan to dump you on one of the national agents to collect a referral fee, and you'll be taking a big chance that the person they list will get the documents they receive for you to the incorporation website, and then the incorporation website you hire will get it to you. It is worse yet is if you are continually being billed from a national LLC formation website you signed up with and they aren't the actual business or person that is listed as your registered agent. With us, you know who you're counting on from day one. As far as we know we are the only service that uploads all complete documents instantly, from our local location to your account.

Are you a do-it-yourselfer? You can save some money:

If you want to form a New York Limited Liability Company yourself, you can just hire us as your New York registered agent, and you'll instantly have the New York forms to file and filing instructions on the quickest, cheapest, and most efficient way to file a New York LLC. We also will look over your filing for free if you would like us to. You'll get the ongoing support of our online tools, compliance reminders and the support of a professional New York LLC Agent service.