How to start an LLC in New York: Your 2025 step-by-step guide

You’re ready to launch your business. Congratulations! One of the first decisions you must make is selecting the right legal structure. Your business's legal entity structure controls how it is taxed and the liability protection you might enjoy. There are several types of entity structures, including sole proprietorships, limited liability companies (LLCs), S-corporations, C-corporations, and limited liability partnerships (LLPs). One of the most popular small business structure types is an LLC.

A limited liability company is a legal structure used by some businesses to provide liability protection for the owner. Unless the business elects to be taxed like a corporation, the business taxes pass through to the owners. They report their income on their individual income tax forms instead of filing a separate business tax return. 

Jump to:

• Why choose an LLC in New York?
• New business data in New York in 2025
• 5 steps for creating an LLC in New York
• Step 1: Choose a name for your New York LLC
• Step 2: Choose a registered agent in New York
• Step 3: Prepare and file your New York LLC documents
• Step 4: Get an Employer Identification Number (EIN)
• Step 5: Ongoing compliance and required filings
• Types of LLCs to consider in New York
• Costs of setting up an LLC in New York
• LLC Taxes in New York State
• Frequently asked questions

Why choose an LLC in New York?

An LLC provides key advantages over other business structures, making it a common choice for entrepreneurs. One of the biggest benefits is liability protection—your personal assets remain separate from the business, protecting them from lawsuits and debts. LLCs also offer flexibility in management, allowing owners to run the business as they see fit without the constraints of a board of directors. Additionally, forming an LLC can boost your business’s credibility, giving it a more professional and established presence compared to a sole proprietorship.

This guide will explain how to start an LLC in New York State. It covers the costs and paperwork involved, tax considerations, how accounting software could help, and other important information to set yourself up for success. 

New business data in New York in 2025

New York is positioning itself as a powerhouse for innovation, economic growth, and technological advancement. With strategic investments in key industries, the state is fostering an environment that attracts businesses, creates jobs, and strengthens long-term economic resilience. 

New York State is a leader in the semiconductor industry. Its Green CHIPS program provides up to $10 billion in economic incentives to semiconductor manufacturing and supply chain projects. The program attracts semiconductor partnerships, creating jobs and fostering environmental stability.

To attract investment in manufacturing and high-tech development, the state is investing in power-ready sites. As part of this effort, the governor is launching the Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) initiative. Backed by $300 million in initial funding, this program will enhance electric capacity at key sites, making them ready for development and more appealing to new businesses.

New York City, specifically, has a thriving economy, with record-high employment and a labor force participation rate of 62.8%. The city has added 21,500 finance jobs post-pandemic while also expanding in tech, life sciences, healthcare, and the green economy, creating more high-growth, middle-to-high-wage opportunities.

The city is a global leader in applied AI and home to over 2,000 AI startups and 40,000 AI-skilled workers, with AI expected to generate far more jobs than it displaces. Tourism is also rebounding, with nearly 65 million visitors in 2024—a 3.5% increase from the previous year—marking the second-highest tourism year in the city’s history.

5 steps for creating an LLC in New York 

Starting an LLC in New York involves a series of steps such as choosing a unique name, filing necessary documents, and securing an EIN. This guide details each step so you can form your LLC correctly and in compliance with New York State laws and regulations. 

Step 1: Choose a name for your New York LLC

Your LLC’s name is the legal identity of your business and must comply with New York State naming regulations. When choosing your business name, consider one that is distinct, professional, and representative of your company’s purpose. You may also want to see if a matching URL is available if you plan to establish an online presence.

New York LLC naming rules

When selecting a name for your LLC in New York, you must follow the guidelines set by Section 204 of the New York Limited Liability Company Law:

Uniqueness requirement

• Your LLC’s name must be distinguishable from any registered New York domestic or foreign LLC, corporation, or limited liability partnership.
• Minor variations, such as changes in punctuation, spacing, or abbreviations, do not create uniqueness. For example, the following do not make a name different from an existing entity:
• Suffixes (e.g., "Inc." vs. "LLC")
• Articles ("The," "A," "An")
• Symbol substitutions ("&" vs. "And")
• Singular vs. plural forms of a word
• Numbers in words vs. digits (e.g., "Five" vs. "5")

LLC designation

Your LLC’s name must include one of the following:

• Limited Liability Company
• L.L.C.
• LLC

Restricted words and special approvals

Certain words require additional authorization from state agencies before use in an LLC name. Examples include:

• "Bank" 
• "Trust" 
• "Insurance Company" 
• Other regulated terms implying a specific business activity may also require agency approval.

For a complete list of prohibited and restricted words, refer to Section 204 of the New York Limited Liability Law.

Check for name availability

Before registering your LLC, ensure your desired business name is not already in use. You can search for existing business names using the New York Department of State Business Entity Database. Keep in mind that a name being available does not mean it is approved or meets all legal requirements.

To officially search for name availability, submit a written request to:

New York Department of State, Division of Corporations

One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231

Clearly state that you are checking name availability and list the name(s) to be searched. The fee is $5 per name.

Reserving your LLC name

Reserving a name is not mandatory, but you may wish to do so. This will allow you to reserve your desired name as you work on the rest of your paperwork. To reserve a name, file an Application for Reservation of Name with the New York Department of State.

• Fee: $20
• Reservation period: 60 days
• Renewal: You can request one 30-day extension with an additional $20 fee.
• Where to file: You can submit the form online or mail it with a check payable to the New York Department of State.

By reserving a name, you gain exclusive rights to use it while preparing to launch your LLC.

Step 2: Choose a registered agent in New York

A registered agent is an individual or entity that serves as the official point of contact for receiving legal documents and official communications on behalf of your LLC. In New York, this is also called an Agent for Service of Process. 

Who needs a registered agent?

All LLCs in New York, both domestic and foreign (out of state), are required to have a registered agent. However, in New York State the Secretary of State is the default registered agent. That means it will automatically accept service on behalf of your business and forward a copy of the legal documents to your business via your address on file.

Who can be a registered agent? 

LLCs also have the option to appoint a registered agent in New York State other than the Secretary of State. This agent must meet the following requirements:

• Be over the age of 18
• Have a physical address within New York State (P.O. boxes are not acceptable)
• Be available during regular business hours to receive legal documents on behalf of your LLC. 
• If you choose to designate such an agent, you must provide the agent's name and address in your Articles of Organization

Choosing a registered agent service

If you prefer, you may hire a professional registered agent service. These services provide a physical address in New York and are available during business hours to accept legal documents on your behalf.

There are registered agent services throughout New York. If you’re thinking about hiring a professional provider, here are some tips for finding the right one.

Research and compare

Be sure to research different providers and compare factors such as:

• Cost: Fees typically charge from $50 to $250 or more annually
• Reputation: Choose a reputable company with a proven track record.
• Customer support: Ensure they provide excellent customer service and support.
• Knowledge. Select a provider with a strong understanding of New York-specific compliance requirements to ensure your business stays in good standing.
• Coverage. For businesses operating in multiple states, choose a provider that offers services across all the states where you plan to operate.

Consider bundled services

If you're using a company formation service or an attorney to set up your LLC, they may offer registered agent services as part of a package.

Step 3: Prepare and file your New York LLC documents

Once you’ve decided on your name and your registered agent, the next step is to fill out and file the Articles of Organization form.

What is an Articles of Organization?

The Articles of Organization is the legal document you must file to form an LLC in New York. It is filed with the Department of State. The filing fee is $200.

You have two options for filing:

Option 1: Online filing

The New York Department of State offers an online filing system for Articles of Organization. To file online, visit the Department of State's online filing system. After submission, you will receive an email acknowledgment with your filing receipt attached in PDF format. Online filings are typically processed promptly, allowing for quicker approval of your LLC.

Option 2: Mail-in filing

If you prefer to file by mail, download and complete the Articles of Organization form. Prepare payment for the $200 filing fee (preferred methods include money order, Visa or MasterCard), payable to the "Department of State." Mail the completed form and payment to:

New York State Department of State Division of Corporations, 

State Records and Uniform Commercial Code 

One Commerce Plaza 

99 Washington Avenue 

Albany, NY 12231

You can also deliver it in person to the same address on the sixth floor Monday through Friday between 8:30 am and 4:30 pm or fax it to the Division of Corporations, State Records and Uniform Commercial Code at (518) 474-1418.

How long does it take for an LLC to get approved in New York?

Online filings are generally processed immediately. Shortly after submitting your filing, you will receive an email confirmation with your filing receipt attached as a PDF. 

Mail-in filings may take longer, depending on the Department of State's workload. For time-sensitive filings, expedited processing services are available for an additional fee.

What to include in your LLC’s Articles of Organization

When completing the Articles of Organization, you'll need to provide:

• Your name and contact information
• Exact name of your business entity
• Document type 
• Whether you want certified copies (for a fee)
• County in which your business is located
• Post office address for the Secretary of State to send copies of legal process
• Filer's name and mailing address

Publication requirement

In New York State, LLCs must adhere to specific publication requirements regarding the Articles of Organization and the adoption of an operating agreement.

• Timeline: Within 120 days of filing the Articles of Organization, an LLC is required to publish either a copy of the Articles or Organization or a related notice in two newspapers.
• Newspaper selection: The newspapers must be designated by the county clerk of the county where the LLC's office is located.
• Publication duration: The notice must run for six consecutive weeks.
• Affidavit of publication: After the publication period, each newspaper will provide an affidavit of publication.
• Certificate of Publication: The LLC must complete a Certificate of Publication form, attach the affidavits from both newspapers, and submit them to the New York Department of State along with a $50 filing fee.
• Consequences of non-compliance: Failing to meet the publication requirement and file the Certificate of Publication within the 120-day timeframe will result in the suspension of the LLC's authority to conduct business in New York.

Operating agreement requirement

New York also requires LLCs, whether you are a single or multiple member LLC, to prepare and adopt a written operating agreement within 90 days of filing the Articles of Organization. This agreement outlines the rights, powers, duties, liabilities, and obligations of the members among themselves and in relation to the LLC.

Your operating agreement doesn't need to be filed with the state, and the state also has no requirements for what it should include. However, each LLC member must be given a copy.

If you are not a New York resident

To conduct business in New York as a non-resident and establish a foreign (out-of-state) LLC, follow these steps:

1. Designate a registered agent: All foreign LLCs must designate the New York Secretary of State as their registered agent (also known as agent for service of process). You may also appoint an additional registered agent with a physical New York address (P.O. boxes not allowed) to receive legal documents on your behalf.
2. Ensure compliance with naming requirements: Your LLC’s name must be distinguishable from existing entities registered in New York. If your business name is unavailable, you may need to register under an assumed name.
3. Obtain a Certificate of Status: Submit a Certificate of Status (also called a Certificate of Good Standing or Certificate of Existence) from the state where your LLC was originally formed. The certificate must be dated within one year of the application.
4. Complete the Application for Authority: Fill out the Application for Authority and mail the form with the $250 filing fee to: The New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.
5. 5. Meet the publication requirement: Within 120 days of approval, publish a copy of your Application for Authority (or a notice) in two newspapers designated by the county clerk where your LLC is located. The notice must run once a week for six consecutive weeks. After publication, submit the following with a $50 filing fee to the New York Department of State. 

• Certificate of Publication
• Affidavits from both newspapers

For more details, visit the New York Department of State website.

Step 4: Get an Employer Identification Number (EIN)

You’ll likely need an Employer Identification Number (EIN) from the Internal Revenue Service to form an LLC in New York. An EIN is a nine-digit number that identifies a business for tax purposes, similar to a Social Security Number for your company.

According to the IRS, you need an EIN if any of the following apply:

1. You have employees
2. Your business operates as a corporation or partnership
3. You file employment, excise, or alcohol, tobacco, and firearms tax returns
4. You withhold taxes on income, other than wages, paid to a non-resident alien
5. You have a Keogh plan (a tax-deferred pension plan)
6. You are involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers' cooperatives, or plan administrators

Single-member LLC considerations

If you are a single-member LLC, you may not be required to obtain an EIN. However, getting one is still a smart idea, as your business needs might change over time, and obtaining an EIN is free.

An EIN becomes mandatory if your LLC elects to be taxed as a corporation, hires employees, or files excise or employment tax returns.

Having an EIN also simplifies opening a business bank account and protects your personal Social Security Number, reducing the risk of identity theft.

Requesting an EIN

You can request an EIN by mail or phone, but the fastest method is completing the process online on the IRS website. After obtaining an EIN, use accounting software to track business expenses and ensure your company’s finances remain separate from your personal finances. If you plan to hire employees, the New York paycheck calculator can help estimate wages and withholdings.

Step 5: Ongoing compliance and required filings

Once you've started an LLC in New York, you must take steps to maintain compliance with New York State and federal law. This includes the following:

• Biennial Statement
• Filing requirement: Every domestic and foreign LLC authorized to do business in New York must file a Biennial Statement with the Department of State.
• Due date: The statement is due every two years during the calendar month of the LLC's formation or authorization.
• Purpose: To update the Department of State with the LLC's current address for service of process.
• Filing method: File online using the Department of State’s e-Statement Filing Service.
• Fee: $9.
• Beneficial Ownership Information Report
• Filing requirement: Submit a Beneficial Ownership Information Report to the U.S. Department of the Treasury within 30 days of forming your LLC.
• Purpose: This report helps prevent money laundering and other financial crimes by identifying the true owners of the LLC.
• Who needs to file: All LLCs formed in 2024 or later are required to file.
• How to file: File the report online through the U.S. Treasury Financial Crimes Enforcement Network website.
• Fees: There is no filing fee.
• Business licenses and permits
• Requirement: Depending on your LLC's location and industry, specific licenses or permits may be necessary.
• Examples: Professional services, alcohol retailers, importers and manufacturers, cosmetologists, home contractors, and real estate brokers 
• Verification: Consult the New York Business Express website and local county or city clerks to determine specific requirements.

State tax registration

• Requirement: If your LLC will collect state taxes, such as sales tax, you must register with the New York State Department of Taxation and Finance.
• Registration method: Register online through the New York State Department of Taxation and Finance’s Online Services portal.
• Purchase insurance
• Requirement: Depending on your business activities, specific insurance coverage may be necessary.
• Examples: Workers’ compensation insurance, disability benefits insurance, and unemployment insurance.

Certificate of Status (Optional)

• Purpose: This certificate (also called a Certificate of Existence or a Certificate of Good Standing) verifies that your LLC complies with state regulations and is authorized to conduct business in New York.
• Why you may need it: To open a business bank account, obtain certain business licenses, or apply for credit card processing.
• How to obtain it: submit a written request to: New York State Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. Certificates of Status cannot be ordered online or through email or phone. 
• Fee: $25. Expedited handling services are available for additional fees. 

Types of LLCs to consider in New York 

When establishing an LLC in New York, it's important to understand the different types available to determine which best suits your business needs.

Single-member LLC

A single-member LLC is owned by one individual or entity, offering liability protection while allowing for simplified management and taxation. A single-member LLC can be treated as a disregarded entity for federal income tax purposes, meaning the business activities are reported on the owner's personal tax return.

Multi-member LLC

A multi-member LLC consists of two or more members sharing ownership. This structure provides flexibility in management and profit distribution among members. Multi-member LLCs are typically treated as partnerships for tax purposes unless they elect to be taxed as a corporation.

Manager-managed LLC

In a manager-managed LLC, members appoint one or more managers to handle the daily operations, allowing non-managing members to act as passive investors.

Member-managed LLC

A member-managed LLC involves all members actively participating in the management and decision-making processes of the company. This is the default management structure for LLCs in New York unless otherwise specified in the Articles of Organization.

Costs of setting up an LLC in New York

Setting up a limited liability company in New York can vary significantly depending on your circumstances, however it involves several fees:

• A $200 one-time fee to file your Articles of Organization
• Registered agent service fees, if applicable, which typically start at $50 a year
• Certificate of Publication filing fee of $50
• Publication requirement costs, which may range from $300 to $1,200 depending on the county and publication
• Business licenses and permits costs, which vary by industry and location

Open a New York LLC business bank account

Establishing a separate business bank account is essential for managing your LLC's finances and maintaining the liability protection afforded by the LLC structure. Commingling personal and business funds can compromise this protection.

What you'll need 

When opening a business bank account, you’ll typically need:

• Your EIN 
• Articles of Organization, typically a certified copy 
• (Possibly) an operating agreement and Certificate of Status
• Personal identification

Out-of-state residents should consider choosing a bank with a presence in the state.

After opening your bank account, use QuickBooks accounting software to keep track and manage your finances. 

LLC Taxes in New York State 

New York LLCs are subject to specific tax obligations at both the federal and state levels.

Federal tax classification

• Single-member LLCs: By default, treated as disregarded entities, with income and expenses reported on the owner's personal federal tax return.
• Multi-member LLCs: Default to partnership taxation, requiring the filing of Form 1065 with the IRS.
• Election as a corporation: LLCs can opt to be taxed as a C corporation or S corporation by filing the appropriate forms with the IRS.

State income tax

LLCs that are treated as pass-through entities for federal tax purposes do not pay state income tax at the entity level. Instead, income passes through to members, who report and pay state income tax on their personal returns. However, LLCs that elect to be taxed as corporations are subject to New York's corporate income tax.

Pass-Through Entity Tax (PTET)

LLCs treated as pass-through entities for federal tax purposes do not pay state income tax at the entity level. Instead, income passes through to members, who report and pay New York State income tax on their personal returns.

Corporate income tax

LLCs that elect to be taxed as corporations are subject to New York's corporate franchise tax. In 2025, the New York corporate tax rate is 7.25% for businesses with income over $5 million. Rates for other businesses can vary. 

Annual filing fee

LLCs in New York are required to pay an annual filing fee, which is based on the LLC's New York source gross income from the preceding tax year. The fee ranges from $25 to $4,500. For detailed information, refer to the New York State Department of Taxation and Finance filing fee table. 

Sales and use tax

LLCs selling tangible goods or certain services in New York may be required to collect sales tax from customers. If an LLC purchases items for business use without paying sales tax, it may owe use tax. Registration for sales and use tax can be completed through the New York State Department of Taxation and Finance.

Employment taxes

LLCs with employees must handle state employer taxes, including withholding New York income tax from employee wages and paying unemployment insurance tax. Employers need to register with both the New York State Department of Taxation and Finance and the New York State Department of Labor.

New York State has a complex tax code. LLC owners should consult with a tax professional to ensure compliance with all federal, state, and local tax obligations.

New York-related resources

• New York State Department of Taxation and Finance: This department is responsible for administering state tax laws, collecting taxes, and ensuring compliance with tax regulations for individuals and businesses across New York.
• New York State Department of Labor: The New York State Department of Labor oversees workforce development, unemployment insurance, labor laws, and workplace protections to support employees and businesses across the state.
• New York State Department of State: The New York State Department of State oversees business registrations, licensing, and regulatory compliance, providing essential services to help business owners establish and operate legally within the state.
• New York Small Business Development Centers (NYSBDC): NYSBDC provides no-cost, confidential one-on-one business advice, training, and research to small business owners and entrepreneurs throughout New York State.
• New York Business Express: A centralized online portal offering step-by-step guides, licensing information, and access to state agency services for starting and running a business in New York.

Federal-related resources 

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Internal Revenue Service (IRS): The IRS provides essential information for LLCs, including tax classifications, employer identification numbers (EINs), and filing requirements. Its Small Business and Self-Employed Tax Center offers guidance on tax obligations specific to LLCs.
• U.S. Patent and Trademark Office (USPTO): For businesses looking to protect their intellectual property, the USPTO provides resources on how to apply for patents and register trademarks, which can be essential for safeguarding your unique products or services.
• U.S. Department of Labor (DOL): The DOL's website offers information on federal labor laws, workplace safety regulations, and employee benefits that LLC owners need to consider when hiring staff.

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.