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What are the steps to form an LLC?

On Behalf of | Jun 24, 2019 | Business Law

If you are starting a small business in New York, you may want to consider forming a limited liability company. An LLC may provide unique benefits, including limiting your personal liability for business debts. The process to form an LLC in New York is fairly simple, but there are specific steps you must follow.

The New York state government defines an LLC as an “unincorporated business organization made up of one or more persons.” You may form an LLC on your own or with others. The first step toward officially creating your LLC is filing Articles of Organization with the state. The state’s website provides a form that you may fill out and file. It costs $200 to file your Articles of Organization.

Another state requirement for an LLC is an Operating Agreement. The law indicates that you and the other members of your LLC must write an Operating Agreement that describes the inner workings of the LLC. Some of the details you must include in your agreement are each member’s rights, powers and obligations to each other and to the LLC. You do not have to turn in your Operating Agreement to the New York government.

In most cases, you also have to publish information about your LLC. Specifically, the law says that within 120 days of formation, you must publish your Articles of Organization or notice of your LLC for six consecutive weeks in two newspapers. You may get a list of acceptable newspapers from the clerk’s office in the county where your LLC is located. Once you publish the notice, you may get an affidavit from each of the newspapers and submit a Certificate of Publication to the New York Department of State. Filing this form costs $50.

This information on limited liability companies is intended for educational purposes and should not be interpreted as legal advice.