The state of New York has managed to become one of the most powerful economies among other competitors. The state contributes to around 8% of the American GDP, and in 2017 the small, yet influential state ranked in over $1.5 trillion towards the U.S. economy. For years, small-medium businesses, and the obvious Wall Street financial entities have become a key component in their contribution to boosting economic expansion, creating more employment for citizens and foreigners and also host a variety of successful industries.
A portion of the New York economy is an active sprawl of wealthy and influential business owners. These activities have made it possible for entrepreneurs and small startup owners to grow their business, generate more substantial revenue for themselves, and lay a foundation for economic stability.
Starting an LLC in New York
Limited Liability Companies or LLCs are relatively common amongst American enterprises, offering better liability protection, easier formation setup, and some attractive tax benefits. The overall popularity of LLCs in New York is something many entrepreneurs are considering, as the state can now boast with lower unemployment and better monetary income for buyers.
Why start an LLC in New York?
There might be an average rise in basic products and services, but overall a low flat tax rate for businesses and LLCs making $290k or less in the taxable year will receive a 6.5% tax solicitation. With this, LLCs and Limited Liability Partnerships (LLPs) are exempt from paying state and federal income tax. Members are thus required to pay a filing fee under their gross income
The state does offer better tax legislation, but the formation process which can take between 5-7 weeks, has made it somewhat less of a convenience for many. The state manages to control thousands of filing each year, and without much limitation on the formation process, new owners can form their new LLC within a few months.
How to set up an LLC in New York?
Like many of its neighbor states, there are basic guidelines and requirements one should thoroughly complete when filing your New York LLC documentation.
STEP 1 – Create a name
Having a good and well worth name can offer you a better brand identity, especially in a state with thousands of successful businesses. You will need to ensure your new business name isn’t already being used by another person or is registered as a trademark. You can do this by visiting the Department of State’s Division of Corporations, State Records and Uniform Commercial Code.
STEP 2 – Appoint a Registered Agent
Your registered agent must be willing to receive and file any necessary state or federal documentation. This will become your liaison between the state offices, and also is a vital role during the formation process.
STEP 3 – File Articles of Organization
You can file these documents on your own, or with the help of a business attorney. There are online applications that can be found on the Department of State Division of Corporations State Records and Uniform Commercial Code website. You can also post it to their offices, and ensure to pay a $200 filing fee to the Department of State.
STEP 4 – Publishing Notice of Articles of Organization
You will need to publish a copy of your articles in two country newspapers for 6 weeks within 6 months of formation. There are some legal requirements regarding this, so ensure to review them beforehand.
Step 5 – Create an Operating Agreement
This document will need to contain each member’s dedicated role and the capacity they fill in your newly formed LLC, with an attachment of legal roles, how profits and dividends will be divided, etc.
Step 6 – Register for an Employer Identification Number (EIN)
An EIN can be obtained from the IRS and will assist in opening a business bank account, hire new staff, and also apply for state and federal tax.
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