How to Form an LLC in New York: Step-by-Step Guide for 2025

Forming a Limited Liability Company (LLC) in New York involves seven key steps: choosing a unique name, filing Articles of Organization with the NY Department of State ($200 fee), completing the state-required publication in two newspapers, obtaining an EIN, creating an operating agreement, and securing necessary licenses. The entire process typically takes 4-6 months primarily due to New York's unique 6-week publication requirement under Section 206 of the LLC Law.

New York is one of only two states that requires LLC publication (the other is Arizona), and failure to complete this step within 120 days will result in suspension of your LLC's authority to conduct business. The total cost ranges from $550 to $2,700+ depending on your county, with publication costs varying significantly—Albany County averages $150 while Manhattan can exceed $2,000.

This guide covers everything you need to form your LLC correctly, avoid costly mistakes, and maintain good standing with the state.

Why Form an LLC in New York?

A Limited Liability Company provides several advantages for New York business owners:

Personal Asset Protection: The LLC structure separates your personal assets from business liabilities. If your business faces a lawsuit or debt, creditors generally cannot pursue your personal home, car, or savings.

Tax Flexibility: LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding the double taxation that corporations face. You can also elect to be taxed as an S-Corp or C-Corp if it provides tax advantages.

Professional Credibility: Operating as an LLC (rather than a sole proprietorship) signals legitimacy to customers, vendors, and potential partners. It can make securing business loans and contracts easier.

Flexible Management: Unlike corporations with required boards and officers, LLCs can be managed directly by members or by appointed managers, providing operational flexibility.

However, New York's unique publication requirement makes it one of the more expensive states for LLC formation. Understanding this upfront helps you budget appropriately.

Step 1: Choose Your LLC Name

Your LLC name must comply with New York Department of State naming rules:

Required Elements: The name must include "Limited Liability Company," "LLC," or "L.L.C." Abbreviations like "Ltd. Liability Co." are not acceptable.

Uniqueness Requirement: Your name must be distinguishable from all other business entities registered with the NY Department of State. This includes LLCs, corporations, and limited partnerships.

Prohibited Terms: Certain words require additional filings or approvals:

• "Bank," "insurance," "attorney," or similar regulated industry terms typically require special licenses
• "University," "college," or educational terms may need Education Department approval
• Generic geographic terms combined with business types (e.g., "New York Consulting") may be restricted

Check Name Availability:

Before filing, verify your desired name is available:

1. Search the NY Department of State business entity database
2. Search common law trademarks and federal trademarks via USPTO TESS
3. Check domain name availability if you plan to establish a web presence

Reserve Your Name (Optional):

If you're not ready to file immediately, you can reserve your name for 60 days by filing an Application for Reservation of Name (form DOS-234) with a $20 fee. This prevents others from taking your chosen name while you prepare your formation documents.

Step 2: Designate Your Principal Office Location

You must designate the New York county where your LLC's principal office will be located. This county designation is critically important because it determines:

Publication County: You'll be required to publish your LLC formation notice in newspapers designated by that county's clerk. Publication costs vary dramatically by county—from $150 in Albany to over $2,000 in Manhattan.

Service of Process Address: This is the address where legal documents (like lawsuits) will be served. It must be a New York address and will appear on your Articles of Organization.

County Clerk Interaction: You'll need to contact this county's clerk office to get the list of designated newspapers for publication.

Important: The county you designate doesn't have to be where you physically conduct business day-to-day. Many business owners strategically choose Albany County to minimize publication costs, as long as they can receive mail there (using a registered agent or mailbox service is common).

Step 3: File Articles of Organization

The Articles of Organization (Form DOS-1336-f) is the official document that creates your LLC under New York law, filed pursuant to Section 203 of the Limited Liability Company Law.

Required Information:

1. LLC Name - Including required designator (LLC, L.L.C., etc.)
2. County - The New York county of the LLC's principal office
3. Service of Process - You have two options:
   • Designate the Secretary of State as agent (most common)
   • Designate a registered agent (optional in NY, unlike most states)
4. Latest Date to Dissolve - Optional; leave blank for perpetual existence
5. Purpose - Can be general ("any lawful business") or specific
6. Organizer Information - Name and address of the person filing

Filing Methods:

• Online: Via the NY Department of State online filing system - Fastest processing (1-7 business days)
• Mail: Send to One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231
• In-Person: 6th floor, 99 Washington Avenue, Albany, NY (Monday-Friday, 9 AM - 4:30 PM)
• Fax: (518) 474-1418

Filing Fee: $200 (non-refundable)

Processing Time:

• Online filings: 1-7 business days
• Mail/fax filings: 2-4 weeks typically

Once approved, you'll receive a stamped copy of your Articles of Organization. This document proves your LLC legally exists and is often required to open a business bank account.

Step 4: Complete the Publication Requirement

This is New York's unique requirement that surprises many new LLC owners. Section 206 of the NY Limited Liability Company Law mandates that most LLCs publish a notice of formation in two newspapers for six consecutive weeks.

Publication Requirements:

• Two Newspapers: One daily and one weekly newspaper
• County Clerk Designation: The newspapers must be designated by the clerk of the county where your LLC office is located
• Six Consecutive Weeks: Publication must run for exactly six weeks without interruption
• 120-Day Deadline: You must complete publication AND file the Certificate of Publication within 120 days of your LLC formation date

Failure to Comply:

If you don't complete publication within 120 days, the NY Department of State will suspend your LLC's authority to conduct business. While your LLC technically still exists, it cannot legally:

• Enter into contracts
• Sue or be sued
• Conduct business operations

Your LLC can be reinstated by completing the publication requirement, but the suspension creates legal complications.

The Publication Process:

1. Contact County Clerk: Call or visit the county clerk's office to get the list of designated newspapers
2. Contact Newspapers: Request publication rates (costs vary dramatically—see our county-by-county cost breakdown)
3. Provide Publication Text: The notice typically includes your LLC name, formation date, county, and purpose
4. Run for Six Weeks: The newspapers will publish your notice weekly for six consecutive weeks
5. Receive Affidavits: After the sixth week, each newspaper will send you a notarized Affidavit of Publication
6. File Certificate of Publication: Submit both affidavits with Form DOS-1708-f-L to the Department of State with a $50 fee

Typical Publication Costs by Region:

Professional Help:

Because publication is complex and time-sensitive, many business owners use a publication service like LLC Publishers. Our all-inclusive service handles the entire process: selecting approved newspapers, running the ads, collecting affidavits, and filing the Certificate of Publication with the state. This removes the guesswork and ensures compliance. See pricing →

For a detailed walkthrough, see our complete guide to the NY LLC publication requirement.

Step 5: Create an Operating Agreement

New York requires LLCs to adopt a written Operating Agreement within 90 days of filing the Articles of Organization, per Section 417 of the LLC Law.

What Is an Operating Agreement?

This internal document outlines how your LLC will be governed, including:

• Ownership Structure: Member names, ownership percentages, and capital contributions
• Management: Member-managed vs. manager-managed structure
• Profit Distribution: How profits and losses are allocated
• Decision-Making: Voting rights and procedures for major decisions
• Member Changes: Procedures for adding or removing members
• Dissolution: What happens if the LLC closes

Why It Matters:

Even for single-member LLCs, an Operating Agreement is crucial because it:

1. Proves LLC Status: Demonstrates to courts that your LLC is legitimate and separate from you personally (the "corporate veil")
2. Prevents Disputes: Clarifies member rights and responsibilities upfront
3. Overrides Default State Law: New York's default LLC rules apply unless your Operating Agreement specifies otherwise
4. Required for Banking: Most banks require an Operating Agreement to open a business account

Not Filed with State:

Unlike Articles of Organization, the Operating Agreement is an internal document. You keep it with your LLC records but do not file it with the Department of State.

Get a Template:

Many online legal services provide customizable Operating Agreement templates for $50-200, or you can hire an attorney to draft one for $500-1,500 depending on complexity.

Step 6: Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. Think of it as a Social Security number for your business.

When You Need an EIN:

• You have employees
• Your LLC has multiple members
• You elect corporate tax treatment (S-Corp or C-Corp)
• You want to open a business bank account (most banks require it)
• You need to build business credit

Even single-member LLCs without employees should get an EIN to keep business and personal finances separate and protect your Social Security number.

How to Get an EIN (Free):

1. Visit the IRS EIN Online Application
2. Complete the interview-style questionnaire (takes about 10 minutes)
3. Receive your EIN immediately upon completion

The IRS does not charge for an EIN. If you see services offering to get you an EIN for a fee, they're simply filling out the free form on your behalf.

What You'll Need:

• Your LLC's legal name and address
• Responsible party's name and SSN or ITIN (typically the primary member)
• Formation date from your Articles of Organization

Keep your EIN confirmation letter with your important LLC documents. You'll need it to file taxes, open bank accounts, and hire employees.

Step 7: Register for State and Local Requirements

Depending on your business type and location, you may need additional licenses, permits, or tax registrations.

New York State Requirements

Sales Tax Certificate of Authority: If you'll sell tangible goods or certain services subject to sales tax, register with the NY Tax Department to collect sales tax. This is free but requires quarterly or monthly filings.

Employer Registrations: If hiring employees in New York, register for:

• Unemployment Insurance: Through the NY Department of Labor
• Disability Insurance: Through the NY Department of Labor
• Withholding Tax: Through the NY Tax Department

Professional Licenses: Regulated professions (attorneys, accountants, real estate agents, contractors, health care providers, etc.) require professional licenses from the NY State Education Department or other regulatory agencies.

Local Requirements

County and City Licenses: Many municipalities require business licenses or certificates. Check with:

• Your county clerk's office
• Your city or town hall
• Local zoning office (especially for home-based businesses)

NYC-Specific Requirements: Businesses operating in New York City often need:

• General Vendor License (for retail or street vending)
• Certificate of Authority (for specific business types)
• Certificate of Occupancy (for commercial spaces)

Check the NYC Business Portal for comprehensive guidance.

Industry-Specific Requirements:

Certain industries have federal licensing requirements:

• Food Service: Health department permits, FDA registration
• Alcohol Sales: NY State Liquor Authority license
• Transportation: DOT permits
• Firearms: ATF licenses

Research your specific industry's requirements early, as some licenses take months to obtain.

Ongoing LLC Compliance in New York

After formation, New York LLCs have minimal annual requirements compared to corporations.

Biennial Statement

What It Is: A simple two-page form confirming your LLC's current information (address, members, registered agent if applicable).

Filing Schedule: Due every two years during your LLC's anniversary month.

Fee: $9

Failure to File: The Department of State will eventually dissolve your LLC for non-compliance, though you typically receive warnings first.

How to File: Online through the NY Department of State or by mail.

Annual Tax Filings

Federal Taxes:

• Single-Member LLCs: Report business income on Schedule C of your personal Form 1040
• Multi-Member LLCs: File partnership Form 1065 and issue K-1s to members
• Corporate Election: If you elected S-Corp or C-Corp status, file Form 1120-S or 1120

New York State Taxes:

• Partnership Returns: Multi-member LLCs file Form IT-204
• Corporate Franchise Tax: If you elected corporate tax treatment
• Metropolitan Commuter Transportation Mobility Tax (MCTMT): Applies to employers in the MCTMT region

Filing Fee for Partnerships/LLCs: If your LLC's New York source gross income exceeds $1 million, you must pay an annual filing fee ranging from $25 to $4,500 based on income.

Maintain Good Standing

Keep your LLC in good standing by:

1. Keeping Records: Maintain your Operating Agreement, member meeting minutes (even if informal), and major business decisions
2. Separating Finances: Use a dedicated business bank account; never commingle personal and business funds
3. Filing Annual Returns: Meet all federal, state, and local tax deadlines
4. Updating Information: If you change your address, registered agent, or members, file the appropriate forms with the Department of State
5. Maintaining Publication Compliance: If you haven't completed publication, prioritize this to avoid suspension

New York LLC Formation Timeline

Understanding the timeline helps you plan your business launch effectively:

The publication requirement is the longest part of the process. Plan accordingly if you have time-sensitive business needs.

Total Cost to Form a New York LLC

Budget for these expenses when forming your LLC:

The wide cost range is almost entirely due to publication costs. See our county-by-county cost breakdown for specific estimates.

Common Mistakes to Avoid

Based on our experience helping hundreds of New York business owners, here are the most common LLC formation mistakes:

1. Ignoring the Publication Requirement

Many new LLC owners are unaware of New York's publication requirement until it's too late. Missing the 120-day deadline results in suspension of your business authority. Start the publication process immediately after your Articles are approved.

2. Choosing the Wrong County

Your designated county determines publication costs. Research costs before designating your county in the Articles of Organization. You can legitimately use a county with lower costs if you have a valid address there (through a registered agent service, for example).

3. Not Verifying Newspaper Approval

Only newspapers designated by the county clerk qualify. Using non-approved newspapers means your publication doesn't count and you'll need to start over. Always get the official list from the county clerk.

4. Skipping the Operating Agreement

Even single-member LLCs need an Operating Agreement to maintain the legal separation between you and your business. Without one, a court might "pierce the corporate veil" and hold you personally liable for business debts.

5. Mixing Personal and Business Finances

Open a dedicated business bank account immediately. Using your personal account for business expenses undermines your LLC's liability protection and creates tax headaches.

6. Failing to Maintain Compliance

Don't forget the Biennial Statement (every two years) and annual tax filings. Set calendar reminders to avoid late fees and potential dissolution.

7. Choosing a Name That's Too Similar

The Department of State may reject names that are too similar to existing entities, even if not identical. Do thorough searches before filing.

How LLC Publishers Helps

The New York LLC publication requirement is complex, time-consuming, and expensive—especially if you're unfamiliar with the process. That's why we created LLC Publishers.

What We Do:

For one all-inclusive price, we handle your entire publication requirement:

1. Identify Approved Newspapers: We work with your designated county clerk to confirm which newspapers are currently approved
2. Arrange Publication: We contact newspapers, negotiate rates, and submit your publication notice
3. Monitor the Process: We ensure your notice runs for all six consecutive weeks without errors
4. Collect Affidavits: We receive the notarized Affidavits of Publication from both newspapers
5. File Certificate of Publication: We prepare and file Form DOS-1708-f-L with the NY Department of State with the required affidavits
6. Send Confirmation: We provide you with filed copies and confirmation

Why Choose a Service?

• Save Time: No calls to county clerks, no newspaper negotiations, no tracking deadlines
• Avoid Mistakes: Newspaper errors happen, and knowing how to handle them prevents costly delays
• Predictable Pricing: Our all-inclusive price covers everything (filing fees and newspaper costs)—no surprises. View pricing →
• Peace of Mind: We track your 120-day deadline and ensure timely filing
• Track Your Order: Use our online tracking portal to monitor progress in real-time

Publication is a mandatory step—you'll either handle it yourself or pay someone to do it. Most business owners find the time savings and stress reduction worth the service fee.

Get started today

Frequently Asked Questions

How long does it take to form an LLC in New York?

The Articles of Organization typically process within 1-7 business days if filed online. However, the mandatory publication requirement takes 6 weeks minimum, plus time to arrange publication and file the Certificate. Realistically, expect 10-16 weeks from start to full compliance.

Can I form an LLC if I don't live in New York?

Yes. New York allows non-residents to form LLCs. However, you'll need a New York address for service of process (you can use a registered agent service). If your LLC does business in New York but is formed in another state, you'll need to register as a foreign LLC, which also has a publication requirement.

Do single-member LLCs have different requirements?

No. Single-member LLCs follow the same formation process as multi-member LLCs, including the publication requirement. The main difference is that single-member LLCs are taxed as sole proprietorships by default (though you can elect corporate taxation).

What happens if I miss the 120-day publication deadline?

The NY Department of State will suspend your LLC's authority to conduct business. You can typically reinstate by completing publication late, but you should avoid suspension because it creates legal complications with contracts, lawsuits, and compliance. If you're approaching the deadline, contact us immediately—we may be able to expedite the process.

Can I change my LLC's county designation after filing?

Yes, but it requires filing an amendment (Articles of Amendment) with the Department of State. However, changing your county doesn't require republication unless you failed to publish initially. Learn more about address changes and publication.

How much does LLC publication cost in my county?

Publication costs vary dramatically by county, ranging from $150 in Albany to over $2,500 in Manhattan. See our comprehensive county-by-county cost breakdown for specific estimates.

Do I need a lawyer to form an LLC?

No. The Articles of Organization are straightforward enough for most business owners to complete themselves using the Department of State's forms. However, consulting with an attorney is wise if you have:

• Multiple members with complex ownership structures
• Significant assets or liability concerns
• Industry-specific regulatory questions
• Intellectual property to protect

Many people form the LLC themselves but hire an attorney to draft a customized Operating Agreement.

What's the difference between an LLC and a corporation in New York?

LLCs offer simpler management, pass-through taxation by default, and more flexible ownership structures. Corporations have stricter formalities (board meetings, officers, annual reports), face double taxation by default (though S-Corps avoid this), but may be better for raising outside investment. For most small businesses, an LLC provides better flexibility and tax treatment.

Can I use a PO Box as my LLC address?

The service of process address cannot be a PO Box—it must be a physical address where legal documents can be delivered during business hours. However, you can use a registered agent service or commercial mail-forwarding service with a physical address.

Disclaimer

The information in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive for accuracy, LLC laws and Department of State procedures may change. For specific questions about your LLC formation, consult with a qualified attorney or CPA. LLC Publishers provides publication services and administrative filing assistance, but we are not a law firm and cannot provide legal advice.

Key Takeaways

• New York LLC formation requires seven steps: name selection, Articles of Organization filing ($200), publication in two newspapers (6 weeks), Operating Agreement, EIN, Certificate of Publication filing ($50), and business licenses.

• The publication requirement is unique to New York and Arizona. You must publish in two county clerk-designated newspapers for six consecutive weeks and file the Certificate of Publication within 120 days or face suspension.

• Total costs range from $550 to $4,000+ depending primarily on your county's publication costs. Manhattan and NYC boroughs are significantly more expensive than Albany and rural counties.

• Timeline is typically 10-16 weeks from filing Articles to completing publication and filing the Certificate, making publication the longest part of the process.

• An Operating Agreement is legally required in New York and must be adopted within 90 days of formation, even for single-member LLCs.

• Ongoing compliance is minimal: a $9 Biennial Statement every two years and annual tax filings. No annual report is required.

• Strategic county designation can save thousands. As long as you have a valid New York address in a county, you can designate it as your principal office location to take advantage of lower publication costs.

• Professional publication services eliminate stress. For a flat fee, services like LLC Publishers handle the entire publication process, ensuring compliance and saving significant time.

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