How To Set Up An LLC In New York – Forbes Advisor

There are a few crucial details you need to take care of before submitting your LLC formation documents. The following sections detail what to handle before you file.

Select Your LLC Business Name

Before trying to register your new LLC, you should make sure the name you plan to use is available. The Department of State Division of Corporations website offers a searchable database to double-check business name availability. For official confirmation that your name is available, you can submit a name search request in writing to the NY Department of State, along with a $5 fee. After settling on a name and confirming that you can register it, remember it must include “limited liability company” or the abbreviations “LLC” or “LLC”

If you aren’t ready to file your LLC documents, you can ensure your chosen business name will remain available for use by submitting an Application for Reservation of Name. The fee is $20 and must be made payable to the Department of State. Once filed, you can hold your chosen name for 60 days.

Name New York Secretary of State as Registered Agent

Most states require LLCs to name a person or business to act as the LLC’s registered agent. The agent’s job is to accept lawsuits and other legal documents on behalf of the business. In New York, you must name the Secretary of State as your LLC’s registered agent. You must also provide an address to which the Secretary of State can mail any documents it receives.

New York also allows you to name an additional New York resident or registered agent business as your LLC’s agent, but you are not required to do this. If you do decide to hire a registered agent company, there are many choices available. The cost ranges between $49 and $300. Be sure to check the services offered to ensure you are getting the best deal.

Create an Operating Agreement

In New York, LLCs must adopt a written operating agreement, as addressed in Section 417 of the state’s LLC laws. This agreement must include details, such as the type of business, how it will function in day-to-day operations, the rights and powers of LLC members and individual obligations or responsibilities. It is possible to make amendments to the operating agreement from time to time. However, you cannot do so without the express consent of all parties.

The operating agreement may be adopted before articles of organization are filed or within 90 days after filing. They are not filed with the state.

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