How to Start Your Own LLC in New York

This comprehensive step-by-step guide explains how to legally form an LLC in New York, from selecting a compliant business name to meeting tax obligations and maintaining long-term compliance.

1. Choose a Name for Your New York LLC

Choosing a business name is one of the most important early decisions you'll make. Your LLC name represents your brand, influences customer perception, and must meet strict legal requirements under New York law.

Before naming your LLC, clearly define your business concept. Knowing what products or services you offer, who your target audience is, and how you want to position your brand will help you choose a name that fits your long-term goals. Many entrepreneurs also find value in discussing name ideas with trusted colleagues or mentors to get honest feedback.

Once you have a shortlist, research each name carefully. Conduct general web searches, check domain name availability, and look for businesses with similar names that could create confusion. While online business name generators can spark ideas, they shouldn't replace thoughtful branding decisions.

New York LLC Naming Rules

New York's Limited Liability Company Law requires every LLC name to include "Limited Liability Company", "LLC", or "L.L.C." The name must also be distinguishable from all other registered business entities in the state.

Certain words and phrases are restricted or prohibited. Terms suggesting affiliation with government agencies or regulated industries—such as bank, insurance, education, or law—often require additional approval from state agencies before use.

After confirming name availability through the New York Department of State's business database, you should also search the U.S. Patent and Trademark Office (USPTO) database to ensure the name is not federally trademarked.

Reserving a Business Name in New York

If you are not ready to file your LLC immediately, New York allows you to reserve a business name for 60 days. Name reservations must be submitted by mail, as online filing is not available for this process.

You must download and complete the name reservation form and mail it to:

New York Department of State
Division of Corporations
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231

The filing fee is $20.

Doing Business As (DBA) / Assumed Name in New York

At some point, you may want your LLC to operate under a different name than its legal name. In New York, a DBA is referred to as an assumed name.

Businesses often use assumed names to launch additional product lines or operate multiple brands under one LLC. An assumed name also allows you to open bank accounts and accept payments using that alternate name.

To register an assumed name, you must file a Certificate of Assumed Name with the New York Department of State. The filing fee is $25, plus additional county-based fees depending on where your LLC conducts business.

2. Select a Registered Agent

New York requires every LLC to designate a registered agent to receive legal notices, tax correspondence, and official state documents.

In New York, the Department of State automatically acts as the default registered agent for all LLCs. However, you may also appoint an individual or professional registered agent service.

A registered agent must be at least 18 years old, maintain a physical address in New York, and be available during standard business hours. Many business owners choose professional registered agent services for privacy, convenience, and compliance reliability.

3. Decide on Your LLC's Management Structure

New York LLCs can be member-managed or manager-managed. In a member-managed LLC, all owners actively participate in running the business. This structure is common for small or closely held businesses.

In a manager-managed LLC, one or more managers—who may or may not be members—handle daily operations. This option is often preferred when some owners want to remain passive investors.

If your Articles of Organization do not specify a management structure, New York law automatically treats your LLC as member-managed.

4. File Articles of Organization with the New York Department of State

To legally form your LLC, you must file Articles of Organization with the New York Department of State. This can be done online or by mail.

The Articles of Organization require basic information, including your LLC's legal name, the county where it will operate, an address for service of process, and the filer's signature.

The filing fee is $200. Online filings are usually approved immediately, while mailed filings may take several weeks to process.

New York Department of State Contact Information

Website: New York Department of State – Division of Corporations

Phone: 518-473-2492

Mailing Address:
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231-0001

5. Create an Operating Agreement

Unlike many states, New York legally requires LLCs to adopt a written Operating Agreement within 90 days of formation. This document is not filed with the state but must be kept with your company records.

An Operating Agreement defines ownership interests, profit distribution, management authority, voting rights, and procedures for handling major changes such as member withdrawal or dissolution.

Although templates are available online, having an attorney draft or review your Operating Agreement can help prevent future disputes and ensure compliance with New York law.

6. Obtain an Employer Identification Number (EIN)

An EIN is issued by the IRS and is required for multi-member LLCs, LLCs with employees, and businesses that elect corporate taxation.

You can apply for an EIN for free through the IRS website. The application must list a responsible party, who is an individual with authority over the LLC's finances and operations.

7. Obtain Required Licenses and Permits

New York does not issue a general statewide business license, but many industries require specific licenses or permits at the federal, state, or local level.

Businesses selling taxable goods or services must register for a New York sales tax permit. Professional services—such as construction, healthcare, food service, finance, and childcare—often require additional state licensing.

Local governments may also impose zoning, signage, or occupancy permits. Operating without proper licenses can result in fines, penalties, or forced closure.

8. Understand Your New York LLC Tax Obligations

By default, New York LLCs are treated as pass-through entities for federal tax purposes. This means profits and losses are reported on members' personal tax returns rather than taxed at the business level.

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships unless a different election is made.

LLCs may elect to be taxed as C-Corporations or S-Corporations, which can offer tax planning advantages depending on income levels and business goals. In addition, New York imposes an annual LLC filing fee based on gross income sourced to the state.

Additional Ongoing Requirements

After forming your LLC, you should open a dedicated business bank account to keep finances separate and preserve liability protection. Applying for a business credit card can help build business credit and manage startup costs.

Business insurance—such as general liability, professional liability, and workers' compensation—is strongly recommended to protect against unexpected risks.

New York LLCs must also file a Biennial Statement every two years. The filing fee is $9, and the statement is due at the end of the anniversary month of your LLC's formation.

New York LLC FAQs