Benefits of Starting an LLC in New York
New York is one of the largest commercial markets in the world, and forming an LLC here gives you direct access to it with strong legal protections.
Built-In Agent for Service of Process
The New York Secretary of State automatically serves as agent for service of process for every domestic LLC, giving you a baseline layer of coverage from day one.
Personal Asset Protection
A New York LLC separates your personal assets from business liabilities, shielding your home, savings, and personal property from business debts and lawsuits.
Tax Flexibility
New York LLCs default to pass-through taxation but can elect S-corp or C-corp status with the IRS, letting you choose the structure that minimizes your total tax burden.
Low Ongoing Filing Costs
New York’s biennial statement costs just $9 every two years, one of the lowest ongoing compliance fees in the country.
Quick Facts About New York LLCs
1Name Your New York LLC
Your LLC name must be distinguishable from every other business entity on file with the New York Department of State. It must include “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.”
Your name cannot include words that imply it is a government agency or that suggest a type of entity it is not (such as “corporation” or “inc.”). Certain restricted words like “bank,” “insurance,” or “doctor” may require additional licensing or written approval from a state agency.
Search for available names using the New York business entity search on the Department of State’s website. Check for matching domain names and social media handles at the same time.
If you find a name you want but are not ready to file, you can reserve it for 60 days for a $20 fee.
Yes. You would file a Certificate of Amendment with the New York Department of State. There is a filing fee, and if your LLC has already completed the publication requirement, you may need to publish the amendment as well depending on the change.
2Choose a Registered Agent in New York
New York handles registered agents differently than most states. The Secretary of State is automatically designated as the agent for service of process for every domestic LLC. This means if someone serves your LLC with legal papers, the Secretary of State will accept them and forward them to the address on file.
You may also designate a separate registered agent in your articles of organization. This registered agent must be a natural person living in New York or a business entity authorized to operate in the state, and they must have a physical street address in New York (not a P.O. box).
You have three main options:
- Rely on the Secretary of State. This is the default and costs nothing extra. Legal documents will be mailed to the address listed in your articles of organization.
- Serve as your own registered agent. You can designate yourself if you have a physical New York address and are reliably available during business hours.
- Hire a professional registered agent service. A commercial registered agent gives you a consistent point of contact, keeps your home address off public records, and ensures nothing gets missed. You can compare New York registered agent services to find the best fit.
The Secretary of State automatically acts as your agent for service of process, so you are covered by default. However, you can designate a separate registered agent if you want more control over how legal documents are received, or if you want to keep your personal address off public filings.
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3File Your Articles of Organization with New York
The articles of organization (form DOS-1336-f) is the document that officially creates your LLC in New York. You file it with the New York Department of State, Division of Corporations.
The form requires:
- Your LLC’s name
- The county within New York where the LLC’s office is located
- The Secretary of State’s designation as agent for service of process (this is automatic)
- An address where the Secretary of State should mail copies of any process served
- An optional registered agent designation, if you are naming one
- The LLC’s effective date (you can set a future date up to 60 days out, or leave blank for immediate effectiveness)
- An optional dissolution date
- The organizer’s name and signature
The filing fee is $200 regardless of whether you file online or by mail.
| Filing Method | Fee | Processing Time |
|---|---|---|
| Online | $200 | Immediate |
| $200 | 2-3 weeks | |
| Expedited (online or mail) | $225 total | 24 hours |
If you file by mail, send the completed form and a check or money order payable to the “Department of State” to:
Mail Filing Address
New York State Department of State
Division of Corporations
One Commerce Plaza, 99 Washington Avenue
Albany, NY 12231
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4Complete the New York LLC Publication Requirement
New York is one of only three states that requires LLCs to publish a notice of formation in newspapers. This must be completed within 120 days after your articles of organization become effective.
Here is what the process involves:
- Publish a notice of formation in two newspapers (one daily, one weekly) designated by the county clerk in the county where your LLC’s office is located.
- The notice must run for six consecutive weeks in each newspaper.
- After publication is complete, the newspapers will provide you with affidavits of publication.
- Submit a Certificate of Publication along with the affidavits to the New York Department of State. The filing fee for the Certificate of Publication is $50.
Publication costs vary significantly by county. In Manhattan, you could pay $1,500 or more. In less populated upstate counties, costs can be as low as $600. The county clerk’s office in your LLC’s county will tell you exactly which newspapers are designated.
The most effective way to lower costs is to designate your LLC’s office in a county with cheaper newspaper rates. Albany, Saratoga, and other upstate counties tend to have significantly lower publication costs than the five boroughs of New York City. Some LLC owners establish their office address in a lower-cost county for this reason.
5Get an EIN for Your New York LLC
An Employer Identification Number (EIN) is a federal tax ID for your business. You need one to open a business bank account, hire employees, and file taxes. Apply directly with the IRS at IRS.gov for free. The online application takes about five minutes, and you receive your EIN immediately.
6Draft Your New York LLC Operating Agreement
New York is one of the few states that legally requires every LLC to have an operating agreement. Under Section 417 of the New York Limited Liability Company Law, all members must adopt a written operating agreement. This is not just a recommendation.
Your operating agreement should cover:
- Ownership percentages and capital contributions of each member
- How profits and losses are distributed
- Voting rights and decision-making procedures
- Rules for adding or removing members
- What happens if a member dies, becomes incapacitated, or wants to leave
- Dissolution procedures
Even single-member LLCs need an operating agreement in New York. It does not need to be filed with the state, but you must keep it with your business records.
Yes. New York law requires it. Every LLC, including single-member LLCs, must adopt a written operating agreement. It defines the rights and responsibilities of members and is essential for maintaining liability protection.
7Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. Bring your articles of organization, EIN confirmation letter, operating agreement, and a valid photo ID to the bank. Some banks also require an LLC resolution authorizing the account opening.
How Much Does a New York LLC Cost
The state filing fee is straightforward, but New York’s mandatory publication requirement makes it one of the more expensive states for LLC formation. Here is the full picture.
| Item | Cost | Frequency | Notes |
|---|---|---|---|
| Articles of Organization (online) | $200 | One-time | Filed with the Department of State |
| Articles of Organization (mail) | $200 | One-time | Same fee, 2-3 week processing |
| Expedited Processing | $225 total | One-time | 24-hour processing ($25 extra) |
| Publication Requirement | $600 – $2,000+ | One-time | Varies by county; required within 120 days |
| Certificate of Publication | $50 | One-time | Filed after publication is complete |
| Name Reservation | $20 | One-time | Optional; holds name for 60 days |
| Registered Agent Service | $49 – $300/year | Annual | Optional; Secretary of State is the default agent |
| EIN | $0 | One-time | Free from the IRS |
| Operating Agreement | $0 – $500 | One-time | Required by law; free if self-drafted |
| Biennial Statement | $9 | Every 2 years | Due in the anniversary month of formation |
| Certificate of Good Standing | $25 | As needed | Sometimes required by banks or lenders |
Articles of Organization (online)
$200 · One-timeFiled with the Department of State
Articles of Organization (mail)
$200 · One-timeSame fee, 2-3 week processing
Expedited Processing
$225 total · One-time24-hour processing ($25 extra)
Publication Requirement
$600 – $2,000+ · One-timeVaries by county; required within 120 days
Certificate of Publication
$50 · One-timeFiled after publication is complete
Name Reservation
$20 · One-timeOptional; holds name for 60 days
Registered Agent Service
$49 – $300/year · AnnualOptional; Secretary of State is the default agent
EIN
$0 · One-timeFree from the IRS
Operating Agreement
$0 – $500 · One-timeRequired by law; free if self-drafted
Biennial Statement
$9 · Every 2 yearsDue in the anniversary month of formation
Certificate of Good Standing
$25 · As neededSometimes required by banks or lenders
How Does New York Compare?
New York Filing Fee
$200
National Average
$127
New York’s $200 filing fee is above the national average, and the mandatory publication requirement adds several hundred to over a thousand dollars to the total startup cost. The tradeoff is access to the largest metropolitan economy in the United States and a $9 biennial statement that is among the cheapest ongoing fees in any state.
New York LLC Taxes
State Income Tax
New York has a state income tax. Single-member LLCs are treated as disregarded entities (taxed as sole proprietorships) and multi-member LLCs are taxed as partnerships by default. In both cases, income passes through to the members’ personal New York state tax returns. You can elect S-corp or C-corp taxation with the IRS if a different classification benefits you.
Annual Filing Fee (Franchise Tax)
New York imposes an annual filing fee on LLCs based on New York source gross income. The minimum fee is $25, but it scales up based on revenue:
- $25 for gross income under $100,000
- $50 for $100,000 to $249,999
- $175 for $250,000 to $499,999
- $500 for $500,000 to $999,999
- $1,500 for $1,000,000 to $4,999,999
- $3,000 for $5,000,000 to $24,999,999
- $4,500 for $25,000,000 and above
This fee is paid annually with your New York tax return, separate from the biennial statement.
Sales Tax
New York has a 4% state sales tax. Local jurisdictions add their own rates on top of this, so the combined rate typically ranges from 7% to 8.875% depending on your location. If your LLC sells taxable goods or services, you must register for a Certificate of Authority with the New York Department of Taxation and Finance and collect sales tax.
Federal Taxes
All LLC members pay federal self-employment tax (15.3%) on their share of business income, plus federal income tax at their personal rate. These obligations apply regardless of your state.
By default, a single-member LLC is taxed as a sole proprietorship and a multi-member LLC is taxed as a partnership. Income passes through to members’ personal tax returns. New York also charges an annual filing fee starting at $25, based on the LLC’s New York source gross income. Members pay federal self-employment tax and state income tax on their share of profits.
After Forming Your New York LLC
Biennial Statement
New York LLCs must file a biennial statement every two years with the Department of State. The fee is $9. It is due during the calendar month in which your articles of organization were originally filed, every two years from the date of formation.
You can file your biennial statement online through the Department of State’s biennial statement portal.
There is no late fee for missing the deadline, but your LLC will be flagged as “past due” in the Department of State’s records. This means you will not be in good standing, which can affect your ability to secure financing, enter contracts, and do business in other states. Continued noncompliance can lead to administrative dissolution.
BOI Report
As of March 2025, FinCEN revised its Beneficial Ownership Information (BOI) reporting rule. Domestic LLCs are now exempt from BOI reporting requirements. Only companies formed outside the United States are required to file.
Business Licenses and Permits
New York does not require a general state-level business license. However, your city, county, or municipality may require local business licenses or permits. Certain industries (construction, food service, healthcare, finance, and others) require state-level professional licensing. Check with your local clerk’s office and the relevant state licensing board for your industry.
Publication Reminder
If you have not already completed the publication requirement outlined in Step 4, remember that it must be done within 120 days of your LLC’s formation. This is the most commonly overlooked step for New York LLCs.
Yes. Every New York LLC must file a biennial statement with the Department of State every two years. The filing fee is $9. Missing it will put your LLC out of good standing and could eventually result in administrative dissolution.
Dissolving a New York LLC
If you decide to close your LLC, you need to file Articles of Dissolution with the New York Department of State. The filing fee is $60.
Before filing, you should:
- Vote to dissolve according to the procedures in your operating agreement
- Settle all outstanding debts and obligations
- Distribute remaining assets to members
- File final state and federal tax returns
- Cancel any business licenses, permits, or registrations
If you simply stop operating without formally dissolving, you remain on the hook for the annual filing fee, biennial statements, and any other obligations. The state will not automatically close your LLC for you.
No. A New York LLC exists indefinitely unless you set a specific dissolution date in your articles of organization or you voluntarily file Articles of Dissolution. The state can also administratively dissolve an LLC that fails to file required statements, but the LLC does not expire on its own.
Frequently Asked Questions
The state filing fee is $200. The mandatory publication requirement adds approximately $600 to $2,000 or more depending on the county, plus a $50 Certificate of Publication filing fee. In total, expect to spend between $850 and $2,250 or more to fully form and comply with all New York LLC requirements.
If you file online, your articles of organization are processed immediately. Mail filings take 2-3 weeks. Expedited processing is available for an additional $25 and reduces turnaround to 24 hours. Keep in mind that the publication requirement takes at least six weeks to complete after formation.
Yes. New York allows single-member LLCs. You still need to complete all the same formation steps, including the publication requirement and a written operating agreement, which is required by law even for single-member LLCs.
If your business operates in New York, forming your LLC here is the straightforward choice. The publication requirement adds cost that other states do not have, and the annual filing fee based on gross income can add up as your business grows. However, the $9 biennial statement is extremely cheap, the Secretary of State acts as your default agent at no extra cost, and you gain direct access to one of the world’s largest commercial markets.
