Get the information that you need to file an LLC in the state of New York.
If you already have an existing business and you want to expand your workforce, operations, production, and network, applying for incorporation would be the next big thing for you. A Limited Liability Company is just one of the many types of business entities in NY apart from corporation and sole proprietorship. LLC means that your company is protected by certain government laws against seizure of private properties in case there is a dispute from your creditors and entitlement to lower tax rates. Combine all of these advantages by incorporating in NY and you will be amazed at how fast your company grows. If you are interested to know about the process of forming an LLC in New York, read on.
One of the greatest advantages in forming an LLC in New York is that the state government extends the limited protection that the company gets to all other shareholders, whether they belong to the majority or minority group.
- The application starts by securing a Certificate of Incorporation form from the New York Department of State. This can be downloaded through their website or requested via fax when you contact their state secretary.
- The Certificate of Incorporation form includes fields such as your proposed name of the corporation, type or nature of business, names of officers or board of directors, and other details that describe the existence of your company. But before you fill out the form, you need to send a letter of inquiry to the New York Department of State writing your three most preferred corporate names. The office shall get back to you with an approval if your proposed names are available. This usually takes 3 to 5 business days. But if you want to speed up the process, you can browse over their online database; however, you need to pay a nominal fee of $75 against a $5 payment for every name that you propose. Weigh your options very carefully. Is it going to be cost against convenience or vice versa?
- Appoint the members of your board of directors. It is a must that they are 18 years old and above since they will be responsible for managing all resources of your company. In some cases, there might be some complexities if you wish to include a member who is a non-US citizen especially if there are complications from the other country involved. It is not mandated by the law to declare all the names of your officers, but it is required that you choose one person to represent your company and all the other executives.
- When you are done filling out the form and gathering all the documentary requirements set by the New York Department of State, submit it for processing, which takes about six to eight weeks. As of 2011, there is a filing fee of $125 on top of the $10 minimum tax. As compared to other states, New York imposes a relatively more expensive fee mainly because it houses major financial institutions in the world.