Only in 2021 (the data from 2022 is yet to be published) did almost 6 million Americans file an application to launch a new business. LLCs, or Limited Liability Companies, are one of the most popular types of business, given that the process of starting it is affordable and straightforward when compared to others. In this article, we will walk you through the forming of an LLC in New York, by showing you some important considerations you should make before submitting the application.
LLCs in New York: Where to Start
Before we start showing you the proper forming of an LLC in New York we better define the concept. A limited liability company separates a business owner from the business itself. His personal assets are kept apart from the business’ assets, meaning that LLC owners are not personally liable for the business’s debts. On top of that, this type of company presents tax advantages over others. Additionally, limited liability companies give the customers more confidence, as it looks more professional than dealing with an individual.
If you have decided that an LLC is a way to go, the next step is to decide on a name for the company. Given that this name has to be unique it is important to check the availability on the New York Government website. In order to do that, there is a search database on the Department of State Division of Corporations. Remember that it has to include the LLC abbreviations or plainly Limited Liability Company. If you are not yet ready to submit your documents, you can also apply for a Reservation of Name for up to 60 days. Keep in mind that both of them have a cost.
Selecting a Registered Agent
Once the name matter has been sorted, the next step in forming an LLC in New York is to appoint a registered agent. In the case of the Empire State, you must name the Secretary of State as the LLC registered agent. His or her aim will be to accept a variety of legal documents on behalf of the business, so an address will also be needed so the documents can be mailed. Furthermore, the state lets you select a New York resident or registered agent business, like the Corporation Center, as your LLC’s agent.
After this, you need to adopt a written operating agreement that specifies the type of business, how the day-to-day operations will work, and the rights of the LLC members or responsibilities. If at some point you want to make changes to this document, you will need the express consent of all the parties involved.
The Corporation Center Processes LLCs Documentation on your Behalf!
Now that you have put those pieces in place you are one step closer to forming an LLC in New York. If you are still uncertain about the steps you need to follow or would like our representatives to assist you, contact us today and let us help you set up your business!