Small businesses generate nearly $1 trillion in annual sales and revenue in New York state. Forming a limited liability company (LLC) in New York and becoming fully compliant means completing a longer checklist than most states require. This includes a state filing, publication requirement that varies in cost by newspaper, mandatory operating agreement, and an Employer Identification Number (EIN).

Below, we’ll explain how to start an LLC in New York step by step, what it costs, and what New York requires on taxes, including city-level obligations that may surprise founders.

Key takeaways

• Forming a New York LLC requires a number of steps, including a lengthy publication requirement.

• New York LLCs face taxes at three levels: federal, state, and potentially city.

• Unlike some states, New York requires a written operating agreement, though it doesn’t have to be entered into at the time of filing.

What is an LLC in New York?

An LLC is a type of business structure that separates your personal assets from your business liabilities. If your LLC gets sued or can’t pay its debts, your house, savings, and personal property generally aren’t on the line.

As in other states, LLCs in New York offer flexibility that corporations don’t. You can choose how the business is taxed, structure ownership, and skip the formalities that come with incorporation. For small businesses, solo founders, and early-stage startups, an LLC’s protection and flexibility makes it a solid choice.

Why start an LLC in New York?

Forming an LLC in New York involves more steps, paperwork, and costs than in many other states.

However, New York gives you direct access to one of the densest concentrations of customers, investors, and talent in the world. If you’re building a business that depends on New York relationships, it makes sense to form locally.

What are the requirements to create an LLC in New York?

Before you file anything, a few things should be in place.

Here are the requirements to start an LLC in New York:

• Unique, compliant name: Your LLC’s name must include “Limited Liability Company,” “LLC,” or “L.L.C.” It can’t be deceptively similar to an existing New York business entity, and restricted words such as “bank,” “attorney,” and “university” require additional approvals. You can check name availability through the Corporation and Business Entity Database.

• Mailing address: The New York Secretary of State is the default registered agent, but you must provide an address where it can forward any legal documents served on the LLC.

• Readiness for the publication requirement: New York requires newly formed LLCs to publish a formation notice in two newspapers for six consecutive weeks, which can be pricey in Manhattan. Your LLC won’t be fully compliant with state law until you complete this step.

What’s the process for creating an LLC in New York?

Forming an LLC in New York requires attention to detail.

Here are the steps:

1. Reserve your name

This is an optional but useful first step. A name search costs $5 per name and must be sent as a written request. If you’ve settled on a name and aren’t ready to file yet, you can reserve it with the Department of State for 60 days.

2. File Articles of Organization

This is the foundational filing to officially register your LLC. You’ll submit it, along with a filing fee, to the New York Department of State, either online or by mail. It should include your LLC’s name and the county where it will be located. You can expedite processing for an additional fee if you need it within 24 hours (or faster).

3. Complete the publication requirement

After your Articles of Organization are approved, you have 120 days to publish your formation notice in two newspapers for six consecutive weeks. Once both runs are complete, each newspaper sends you an affidavit of publication. You’ll attach both to a Certificate of Publication and file it with the Department of State for a fee. If this is not done in the required timeframe, your LLC’s authority to conduct business can be suspended.

4. Draft an operating agreement

New York requires LLCs to have a written operating agreement. While it’s not filed with the state, it needs to exist. A solid agreement covers ownership percentages, member responsibilities, voting rights, profit and loss distribution, and what happens if a member wants to leave or the LLC dissolves. It must be entered into within 90 days of filing the Articles of Organization.

5. Get an EIN

An EIN is your LLC’s federal tax ID. You’ll need it to open a business bank account, hire employees, and file taxes. The Internal Revenue Service (IRS) issues EINs online for free, and the application takes only minutes.

What are the filing fees and ongoing costs for a New York LLC?

Formation costs add up fast in New York.

Here’s what to budget for before you file:

• Articles of Organization filing fee: $200

• Name reservation (optional): $20

• Newspaper publication: Varies by paper

• Certificate of Publication: $50

• Registered agent service (if using one): Costs to hire one vary, ranging from about $50—$300 per year

• Biennial statement: $9. New York LLCs must file every two years, due in the same calendar month as when the LLC was formed

• NYS LLC annual filing fee: Starts at $25, based on NY source gross income

What do New York LLC owners need to know about taxes?

New York LLC taxes operate at different levels. Missing any one of them could be an expensive mistake.

Here's what you need to know:

Federal taxes

A single-member LLC is taxed as a sole proprietorship by default, which means all income flows to your personal returns, and you pay self-employment tax on net earnings. A multi-member LLC is taxed as a partnership, with each member reporting their share on their own returns. You can elect S corporation or C Corporation tax treatment if the structure makes sense, but that’s a conversation worth having with an accountant before you file anything.

New York State LLC filing fee

New York imposes an annual filing fee based on New York source gross income. It starts at $25 and is separate from any personal income tax you owe.

New York City Unincorporated Business Tax

The city imposes its own 4% Unincorporated Business Tax (UBT) on some businesses in New York City. Not every LLC will owe it, and there are credits, but it’s not something you want to discover at filing time.

How Stripe Atlas can help

Stripe Atlas sets up your company's legal foundations so you can fundraise, open a bank account and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You'll choose your company structure, instantly confirm whether your company name is available and add up to four co-founders. You'll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers and then e-sign all your documents. Any co-founders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your EIN. Founders with a US Social Security number, address and mobile phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g. copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you – whether you are a US or non-US founder – with USPS Certified Mail and tracking. You'll receive a signed 83(b) election and proof of filing directly in the Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world's leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance and operations from industry leaders like AWS, Carta and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you'll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payments volume.

Learn more about how Atlas can help you set up your new business quickly and easily and get started today.