Steps To Formalize Your New York LLC
There are lots of business entities to choose from such as sole and general proprietorship, S and C corporation, among others. Yet for having liability security, a Limited Liability Company (LLC) as a business entity is the perfect one.
LLC is a type of legally recognized business entity from which the business is officially registered in the state. If you are looking for the right state in the US, you’ll want to choose New York. Firstly because of its world’s largest stock market title and significant influence among commerce, finance, fashion, culture, and entertainment, truly a plethora of opportunities are waiting for entrepreneurs.
To escort you on formalizing your LLC business in NY, you need to see this. Follow these easy steps:
Consult A Registered Agent
Having a registered agent will allow you to fill out necessary legal and public documents that will further give you privacy and liability protection, for you and for your business. It is also about compliance on necessary forms beforehand.
Select The Right Name For Your LLC
Unlike sole proprietorship businesses, an LLC is a type of legally recognized business by the state that is why it requires a certain set of guidelines. To guide you, take note of these reminders: (1) Do not choose a name that is resemblant to any government agency; (2) the phrase “limited liability company” must be included or simply LLC; (3) Including restricted words such as “Bank” or “University” will require you to hire licensed individuals; (4) Make sure your chosen name is still available by consulting to the state department.
File the Articles of Organization
Filing the Articles of Organization means you are now conforming to the state’s rules, policies, and regulations in order to create the power, rights, duties, liabilities, and other responsibilities between each member of the LLC as well as the LLC itself. If you would ask how much does an LLC cost in NY on filing the Articles of Organization, it will require you to pay $200.
Create the Operating Agreement
You are urged afterward to create the written agreement to certify your NY LLC to operate. It will secure your business a legal document to ownership and legal operation. You could expect to see these six sections before you proceed: (1) Organization; (2) Management and Voting; (3) Capital Contributions; (4) Distributions; (5) Membership Changes; and (6) Dissolution.
Get Your Employer Identification Number (EIN)
Also known as Federal Tax Identification Number (FTIN) and Federal Employer Identification Number (FEIN), an Employer Identification Number (EIN) will enable your business to hire employees and open a business bank account, aside from its main purpose of separating your personal to business tax return.
Formalizing your LLC business is indeed the sole heart of the birth of your dream LLC as a legally operated type of business. By doing so, you could initially prevent potential negligence issues.