How to Form an LLC in New York: Step-by-Step Guide for 2025

Due to its size and economy, the state of New York has long been an option for many businesses. Starting an LLC in New York is straightforward and allows businesses to be up and running from inception to registration.

This guide will walk you through the steps of how to form an LLC in New York step-by-step to help you navigate the state’s process of creating an LLC in New York step-by-step. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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Big changes are coming for New York LLCs. Starting in 2026, every LLC in the state will need to report who owns and controls the business. This new rule is part of the New York LLC Transparency Act, and it’s designed to prevent fraud and abuse. If you don’t comply, your business could face daily fines of up to $500 or even be shut down.¹

That’s why it’s more important than ever to understand how to form an LLC in New York the right way—from start to finish.

How to Start an LLC in New York (Step-by-Step)

Step 1: Choose a Unique Name for Your Business Entity

Pick a name that meets New York’s legal requirements. It must:

• Be distinguishable from existing businesses in the New York Department of State records.
• Include “Limited Liability Company,” “LLC,” or “L.L.C.”
• Avoid restricted terms like “bank” or “attorney” unless you’ve received approval from the appropriate state agency.

To check availability, use the state’s Corporation & Business Entity Database.² To hold the name, file an Application for Reservation of Name ($20) for a 60-day hold.

Step 2: Appoint a Registered Agent

New York automatically lists the Secretary of State as your LLC’s agent for legal notices. You can also name a secondary registered agent with a physical New York address to handle mail and compliance tasks.

Step 3: File Articles of Organization

Submit Form DOS-1336 to the New York Department of State (online or by mail) with a $200 fee.³ The form must include:

• Your LLC’s name.
• The county of the office of your business.
• A mailing address for legal documents.

Once accepted, your LLC becomes an official business entity in New York.

Step 4: Fulfill the New York Publication Requirement

New York has a unique rule requiring newly formed LLCs to publish a notice in two newspapers (one daily and one weekly) for six consecutive weeks. These publications must be designated by the county clerk listed in your Articles of Organization.

After publication, file a Certificate of Publication and include affidavits of publication from both newspapers. The filing fee is $50. Costs for publication vary greatly by county—expect to pay anywhere from $300 to $1,500, depending on your location.

Step 5: Create an Operating Agreement

Every New York LLC is required to adopt a written operating agreement within 90 days of filing the Articles of Organization. This internal document lays out how your LLC will be managed and operated. It should include:

• Roles and responsibilities of each member or manager.
• Profit and loss distribution.
• Voting rights and procedures.
• Rules for adding or removing members.

Even if you’re forming a single-member LLC, you must still legally have an operating agreement.

Step 6: Obtain a Federal Tax Identification Number (EIN)

An EIN, short for Employer Identification Number, is your LLC’s federal tax ID. You’ll need it to file taxes, hire employees, and open a business bank account.⁴

You can apply for an EIN through the IRS website. The application is free; you’ll receive your number immediately if you apply online.⁵

Step 7: Register for New York State Taxes

Depending on their activities, some LLCs must register with the New York State Department of Taxation and Finance. You’ll need to register if your LLC:

• Sells taxable goods or services (sales tax)
• Has employees (withholding tax)
• Has income subject to the annual LLC filing fee

You can register online through the NY Business Express portal.

Step 8: Apply for Licenses and Permits

New York doesn’t offer a universal business license. Instead, licensing depends on your industry and location. For example, you'll likely need additional permits if you run a food business, childcare service, or construction firm.

Step 9: File a Biennial Statement

Every LLC in New York must file a Biennial Statement with the Department of State every two years. This statement is a way for the state to keep your business records current, ensuring that they have accurate information about your LLC.

The filing fee is $9, and you can file online. The statement is due in the month your LLC was originally formed.

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What Are the Business Requirements for a New York LLC?

Once your LLC is formed, it's key to stay compliant with state rules. New York has a handful of legal and administrative requirements that every business entity must meet to remain in good standing.

Mandatory Requirements

• Articles of Organization must be filed with the New York Department of State.
• Your LLC name must meet the state’s naming rules and be unique in the Department’s records.
• Registered agent designation is required—either defaulting to the Secretary of State or naming your own.
• Publication requirements must be completed within 120 days of formation.
• Operating agreement must be adopted in writing within 90 days, even if you’re the sole member.
• A federal tax identification number (EIN) is necessary for taxes, hiring, and banking.
• State tax registration is required for certain industries or if you collect sales tax or employ workers.
• A Biennial Statement must be filed every two years, with a $9 fee.

Recommended (But Not Legally Required)

• Open a business bank account under your LLC’s name. This keeps your business and personal finances separate, essential for liability protection and clean bookkeeping.
• Business insurance tailored to your industry (e.g., general liability, professional liability, workers’ comp) can protect you from costly lawsuits and claims.

By following these steps and meeting deadlines, your New York LLC will remain in good standing and legally protected.

Benefits of Starting an LLC in New York

New York's unique blend of legal protections, flexibility, and market access makes it an inspiring choice for launching an LLC. The potential benefits are vast, offering a promising start for your business.

• Limited liability protection – Your personal assets (like your home or savings) are protected from business debts or lawsuits.
• Pass-through taxation – The LLC doesn’t pay income tax directly. Profits and losses pass to members and are reported on personal returns.
• Flexible management – As defined in your operating agreement, you can manage the LLC or appoint others.
• Professional image – Adding “LLC” to your business name enhances credibility with customers, lenders, and vendors, especially when opening a business bank account.
• Access to a significant market – With over 20 million residents, New York offers a broad customer base, global connections, and strong infrastructure for nearly any business entity.

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How Much Does It Cost to Form an LLC in New York?

Here’s a breakdown of the typical costs of forming an LLC in New York:

Expense	Cost
Articles of Organization	$200
Name Reservation (optional)	$20
Certificate of Publication	$50
Publication Costs	$300–$1,500+ (varies)
Biennial Statement	$9
EIN from the IRS	Free

Estimated Total: Total costs range from $600 to $1,800, mainly depending on publication fees by county. Some business owners use a registered agent in a more affordable county to reduce these costs.

Can I Open an LLC in New York Without Living There?

Many entrepreneurs form LLCs in New York without ever setting foot in the state, but it’s important to have a reliable method for handling legal and tax correspondence. Here’s what you’ll need:

• List the New York Department of State as your registered agent for the service of process.
• Fulfill the publication requirement by publishing notices in two newspapers designated by the county clerk where your business is located.
• You must maintain a valid mailing address for your LLC inside the United States, either through your address or by using a registered agent service.

Can a Nonresident Open a Company in New York?

Yes, non-U.S. residents can form an LLC in New York. You are not required to be a U.S. citizen or hold a green card. However, you will need the following:

• Obtain an EIN from the IRS.
• You’ll need a U.S. mailing address for certain documents, or use a third-party registered agent.
• Depending on the bank's policies, opening a business bank account may require visiting the U.S..

Comparison with Other States

If you’re considering multiple states, here’s how New York compares to Delaware, Florida, and Pennsylvania LLC formation:

Feature	New York	Delaware	Florida	Pennsylvania
Formation Fee	$200	$90	$125	$125
Annual Report	Biennial ($9)	$300	$138.75	$70 (Decennial)
Publication Requirement	Yes (varies)	No	No	No
Business-Friendly Courts	Moderate	Very High	Moderate	Moderate
Foreign Ownership	Allowed	Allowed	Allowed	Allowed

States like Delaware and Florida offer simplicity and lower recurring costs. New York remains a strong choice for entrepreneurs already living or doing business in the state. Pennsylvania LLCs are attractive for regional businesses, especially those seeking minimal ongoing reporting.

FAQs About New York LLCs

Do New York LLCs Offer Privacy Protections?

New York has enacted the LLC Transparency Act, requiring LLCs to disclose beneficial ownership information to the New York Department of State. This information is accessible to government agencies and law enforcement, but not publicly available.

Why Do People Use New York for LLCs?

Entrepreneurs choose New York for forming LLCs due to its robust economy, diverse market, and access to capital. The state's infrastructure supports various industries, making it an attractive location for business operations.​

Is New York LLC Tax-Free?

No. New York LLCs are pass-through entities. Members pay personal income tax on profits. LLCs may be subject to state filing fees based on gross income.

What Are the Disadvantages of a New York LLC?

Some disadvantages include:​

• High Startup Costs: The publication requirement adds significant cost, especially in places like NYC.
• Annual Fees: LLCs must pay an annual filing fee based on income, even though no formal franchise tax exists.
• More Paperwork: Compared to other states, New York has more steps, such as the operating agreement requirement and biennial filings.
• Limited Privacy: Due to the LLC Transparency Act, owner identities must be disclosed to the state.

Conclusion

An LLC in New York gives your business legal protection, tax flexibility, and credibility. New York’s setup costs are higher than in some states, but the trade-off is worth it for many businesses. You’ll be positioned in a thriving economic hub with access to millions of potential customers and professional resources.

Form an LLC in State
Nevada
Ohio
Oregon
Pennsylvania

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Sources:

1. Key Things About LLCs in New York | Sidley
2. Corporation & Business Entity Database
3. DOS-1336
4. Employer Identification Number
5. IRS website