The New York state facilitates small businesses in various ways. From the Start-Up NY program that frees small businesses in certain areas of tax to specific incentives for small businesses in each borough. However, starting an LLC in New York is also significantly beneficial for the state residents’ support toward new, especially small, businesses and business owners. This welcoming attitude makes New York one of the best states to become one’s own boss. So without further ado, let’s see the process of starting an LLC in New York:
Get a Name
To start an LLC in New York, you must first brainstorm some ideas for your business name. However, the state has certain rules regarding naming businesses. Besides the general rules, such as adding LLC to the business name and making it distinct from other existing business names, there is also a long list of prohibited words and terms. Moreover, some general rules also apply to naming a business.
Once you have brainstormed some name ideas that fulfil the state criteria, you can search for the availability of these names on the New York Department of State website. To reserve a name, download, fill out, and submit this form. Business names are reserved for 60 days in New York. Keep the receipt for the approved reservation safe, as you will need to submit it along with other documents when registering the LLC.
Don’t hasten this step since your business’s name will form its identity. You want the name to be catchy and easy to remember and pronounce. If you are unsure how to come up with a business name, consider using a business name generator.
Get an LLC Address
The state of New York requires a physical stress address for every business. The state accepts any address, even those outside New York, as long as it is not a P.O. Box. If you have a location for your small business office/outlet, you can provide its address as the LLC address. Alternatively, if you plan on running your business from home, you can also provide your home address.
However, providing an address different from your residence helps maintain your privacy. So if you don’t have an alternate address, get a virtual mailbox.
Choose a New York Registered Agent
All LLCs in New York require a New York Registered Agent to manage the LLC on its behalf. Agents are entities or individuals registered with the New York Secretary of State specifically for business correspondence. For starting an LLC in New York, you can name either a person or an entity as the registered agent. In either case, they must have a New York physical street address and be available during business hours for filing and reporting.
Fill out this form to name your LLC’s agent. Your agent must also accept the position officially to complete this step.
File Articles of Organization
Articles of Organization is a document containing the basic information about an LLC. This information includes the LLC name, the country where the LLC is located, the LLC address, the name of the person starting an LLC in New York (i.e., you), the address of the person starting the LLC, and the signature of the registered agent.
This is a relatively simple step and can be completed online. You can also print out the form, fill it out by hand, and submit it through the mail. You will submit it to the New York Secretary of State. Once the government body reviews and approves the articles, the LLC will be established. However, you will only receive a notification for establishing your business at this stage. You must fulfil another step before acquiring the establishment's certification.
Publish Articles of Organization
The state of New York requires LLCs to publish their details, i.e., the articles of the organization, in two local newspapers within 120 days of their establishment. The county clerk designates the newspapers in which the articles must be published. After you publish the articles, you must acquire the affidavit of publication from the newspapers and submit them with copies of the newspaper with the published information to the New York Department of State. In return, you will receive the certificate of establishment for your LLC in up to seven weeks.
Prepare an LLC Operating Agreement
An operating agreement is essential to start an LLC in New York. While the state does not require the LLC owner(s) to submit the agreement, they must adopt it within 90 days of filing the articles of organization.
An operating agreement contains a framework or outline of business operations. The various aspects of this framework include the purpose of business, duration of business, contribution by various business members, profit sharing and division, business management principles, liability clauses, steps for eliminating and adding members, etc. The agreement ensures timely resolutions of any unwanted claim or demand and safety for businesses and business owners through details on these aspects.
After receiving the certificate of establishment, you can open a bank account for your business, register it with IRS to receive an Employee Identification Number (EIN), and register your business for taxes. Once you have completed all these steps, you can finally begin your business.
However, establishing a business on paper only makes it legal; it does not ensure its success. To make your business successful in the competitive New York market, you must also complete the following step:
Get a Website and Market your Business
In today’s digital age, marking an online presence for your business is vital since consumers search for everything they need on the web. Hence, you must get a website for your small business to make it appear legitimate and trustworthy. Besides a website, you will also need to make social media accounts and market your business on online platforms such as Yelp, Nextdoor, etc.
While you can DIY these two steps, hiring a professional service is the ideal way to go about this step. Website designing and maintenance and digital marketing can be time-consuming. Therefore, you must make this process easier for yourself by getting help from Trady.com.
Trady.com is a website-building service dedicated to trades and home services companies. Building a website with Trady.com is easy and super cheap. Moreover, websites built with Trady.com contain exclusive features such as booking appointments and making payments online. The platform also provides complete marketing services for the websites built on it.
With Trady.com, you won’t have to worry about running and maintaining your business’s online presence. Instead, you can focus your time and energy on creating and providing the best products and services to convert your audience into regular customers.
Start with the 14-day free trial at Trady.com to make up your mind.