If you’re thinking of starting a limited liability company (LLC) in New York, you’ll want to know in advance how much it’s going to cost. LLC formation fees vary by state, so it’s wise to do a bit of research and prepare yourself, and your new business, for the necessary steps.
LLC Costs in New York
|Articles of Organization||$200
|Certified Copy – Articles of Organization||$10
|Certified Copy – Certificate of Status||$10
|Registered Agent Service||$50 – $300
|Operating Agreement||$0 – $2500
|Franchise Tax||(see previous table)
|Business Licenses and Renewals||varies – check with state and local government
Articles of Organization Cost
In New York, you form an LLC by filing articles of organization, which requires a $200 fee. It’s a simple process you can do online by logging into the On-Line Filing service provided by the Department of State.
If you need a certified copy of the Articles of Organization, there is a $10 fee. If you need a Certificate of Status, there is a $25 fee. If you’d like the state to hold your LLC name before you register, you can fill out the form here for $20 to reserve it for 60 days.
Completed paper forms and their accompanying fees should be sent to:
New York Department of State
Division of Corporations
One Commerce Plaza, 99 Washington Ave
Albany, NY 12231-0001
Registered Agent Cost
In New York, your business is required to have a registered agent, also known as an agent of service in process. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
In New York, you can be your own registered agent, or it can be another member of the LLC. An individual who is not a member or a professional agency can also serve as the registered agent for your LLC.
Costs for a registered agent service range from $50 a year up to $300 or more. Several online firms, such as ZenBusiness and Northwest Registered Agent, provide quality services at reasonable rates.
Business Licenses and Permits Cost
Starting an LLC requires obtaining the required licenses and permits from local, state, and federal governments. Fees for these vary, but most costs are minimal.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits.
You may also need state-level and local county or city-based licenses. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments to learn more.
Business license fees depend on the type of business and the agency issuing the license or permit. On average, business licenses cost between $100 and $300+, plus renewal fees.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package ($149 + state fees). They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
Operating Agreement Cost
In New York, your LLC is required to have an operating agreement in place. Even though an operating agreement isn’t filed with the state of New York, the document persists to be an effective way to help avoid disputes and lawsuits that could threaten the stability of your business.
An LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations.
Again, the operating agreement is not filed with the state. Instead, it remains a private internal company document. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.
Creating an operating agreement is free if you just draw it up yourself. Alternatively, you can pay around $100 for guidance from an online business advisory.
This is an extremely important document, so it’s recommended that you use the services of a specialist or legal firm. If you choose to hire an attorney, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC.
LLC Formation Service Cost (Optional)
Forming an LLC in New York tends to involve a lot of red tape and paperwork, so for many entrepreneurs just starting out it’s a good idea to hire an experienced service provider.
Some of the best services for forming an LLC are ZenBusiness and Northwest Registered Agent. LLC Formation service will take care of all the key steps, keeping you updated while allowing you to focus on launching and growing your business.
The cost of professional services depends on your requirements and LLC formation plan. Most LLC service providers offer different plans/packages and there are many LLC services that offer free LLC formation.
Ongoing New York LLC Costs
Every state has a different fee structure and timelines for LLC documents and licenses. It’s important to stay up-to-date or your business could face significant penalties. The fees and timelines for New York are detailed below.
In New York, you’ll need to file an LLC biennial statement to keep your LLC in good standing. In other states, this is called an annual report or a statement of information. The fee is $9, and you can file online using the state’s E-Statement Filing System.
Franchise Tax Reports
A franchise tax is not a tax on a franchise business. It is a fee that the state imposes on registered business entities for the right to operate. New York charges an annual franchise tax on a sliding scale. See the table below to identify which bracket your business falls in.
You can visit the state’s Department of Taxation and Finance LLC annual filing fee webpage for more information about the state’s franchise taxes.
Business License Renewal Fees
Some business licenses and permits must be renewed periodically, which may have a small associated fee. In New York renewal fees vary. For example, a food service permit can cost $280 or even $400 to renew.
In contrast, New York liquor licenses are valid for three years. Licensed businesses will be sent a Renewal Advisory three months before the license expiration, specifying the total renewal fees.
It’s best to create calendar reminders to monitor when expirations are coming up to ensure you have time to determine the necessary fees and apply for license renewals. This way, you can run your business without interruption.