Each state has its own perks in terms of business formation, and New York sure has several on its plate for new company owners. Nonetheless, every advantage has an entailed obligation, such as state requirements and expenses. In this post, our business experts will discuss all the NY LLC fees you need to cover for your business to stay compliant and enjoy operation rights.

Formation Costs for a New York LLC

Business Name Reservation

Besides crafting a reliable business plan, one of the first tasks you’ll need to accomplish is coming up with an original LLC name. As you may already know, your chosen trade label must not be similar to any existing companies operating within New York. 

The best step to verify this is to check its availability on the state’s public record. Once confirmed, filing for your articles of organization ASAP is our team’s next step of suggestion. 

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However, if you’re not yet ready to submit your formation documents, you have the option to reserve your desired LLC name within 60 days for a $20 fee. 

Articles of Organization

To officially commence operation and be recognized as a business entity in New York, you’ll have to file your LLC’s articles of organization. This document contains all information about your company, including business address and registered agent details. 

This procedure is one of the first NY LLC filing fees you need to pay for $200. Despite the cost, this is a one-time submission, so it’s best to put it in your budget ahead of time. You can file it via mail or online and even request expedited services ($25 for 24 hours/ $75 for same-day/ $150 for 2 hours). 

Certificate of Publication

Here’s a unique state requirement not commonly asked in other states, the certificate of publication. In New York, all LLCs are obliged to publish a notice of their formation in two newspapers within the country. 

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The typical publishing expenses vary in specific locations, but the range is around $1500 to $2000 in New York City and $80 to $100 in Albany. You’ll also have to file the certificate of publication to the New York Department of State along with a filing fee of $50.

Operating Agreement

Technically, operating agreements aren’t mandatory when forming an LLC. But, considering its content that highlights management rights and decisions, crafting one is a must for your business. There are no charges when you prepare it yourself, but our trade enthusiasts highly suggest seeking professional help to avoid legal lapses. 

EIN Registration

For the business to be recognized and taxed by the government appropriately, you must apply for an EIN (Employer Identification Number) from the IRS. This nine-digit requirement can be obtained for free online. 

Registered Agent

Hiring commercial services and being your own registered agent has long been the debate between many business owners. And it’s no surprise considering that this role assumes the obligation of receiving crucial government documents on your behalf [1]

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Unlike electing yourself, hiring a good registered agent entails costs around $0-$300. However, with their extensive industry experience, rest assured that you’ll never suffer from non-compliance risks and penalties. 

Foreign LLC Registration

If you have an existing business expanding in New York, you must submit an Application for Authority to the state instead of the usual formation documents. On top of that, a foreign LLC must pay $250 for its submission.

LLC Formation Services (Optional)

Should you find yourself overwhelmed with all the filings, you have the option to sign up for an LLC formation service. These providers will submit all required documents to appropriate recipients without any delay. These services range from $0-$300 which is an additional cost aside from the regular LLC formation expenses and annual fees

New York LLC Annual State Fees

Biennial Statement

After forming your LLC, filing a Biennial Statement every two years is a state requirement you cannot avoid. This submission must be made on your LLC’s anniversary month and costs $9 for every filing.

Other Taxes

As a pass-through entity, New York wouldn’t impose any franchise tax on your LLC. However, there are business-specific taxes you must pay to stay compliant. For example, you’ll need to file Quarterly Combined Withholding, Unemployment Insurance Return, and Wage Reporting tax reports if your company hires employees.

(For excellent legal services, you can also consider these high-performing online incorporation services we reviewed)

FAQ

Is there an annual fee for an LLC in New York State?

No, there’s no annual fee for an LLC in New York State. However, you’re obliged to file a Biennial Statement every two years on the month of its anniversary, with a $9 fee during every submission. There are also business-specific taxes one must settle to keep operating legally.

What taxes does an LLC pay in New York?

The taxes an LLC pays in New York are business-specific. This taxation classification imposes charges depending on the business transaction and environment of the company. On top of that, if your LLC is elected as a corporation, you’ll be taxed with business capital tax, business income tax, or fixed dollar minimum tax. 

Conclusion

Now that you’re geared and well-aware about all NY LLC filing fees, all that’s left to do is proceed with your submissions. If you find yourself overwhelmed with the procedures and expenses, our team recommends seeking professional assistance to ensure continued compliance and avoid penalties in the future. 

To know the LLC formation costs and yearly fees in other states, you can also check the list below: 

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