How To Start An LLC In New York

Anyone who begins a business should strongly consider the benefits of starting a limited liability company (LLC). When you form an LLC, you create a barrier between you and your personal assets. If your business has a financial obligation that you cannot pay, can your creditors come after your home or other assets? The answer to that question depends on your entity structure. 

Though you can forgo the formal process of choosing a business entity and be a sole proprietor, you will not be able to protect your personal assets from your business’s creditors. Your personal assets (such as your home) are protected if you opt to form an LLC. With that said, let’s go over how to start one. 

Am I Eligible? 

Before we get started, it is essential to know that to create an LLC in New York, you either have to be a resident of the state or have a business located here. Although we would love to tell you that is all you have to focus on, you will need to obtain the proper licenses before you can legally open an LLC. New York requires dozens of different professions to hold licenses from the state. 

When you meet with an attorney, they can assist you in learning what permits and documents you need based on the type of business you are running and where it is located. 

Turning Your Business Into An LLC

The first, and perhaps the most fun step, is to land on a name. When you do, send it to your attorney for review. We suggest doing this because you need to ensure you aren’t trying to use a name that already exists as an LLC. Additionally, based on the type of business you own, you cannot use certain words in your company’s name. For example, you cannot name your ice cream shop “Attorneys at Law.” Though that is a slightly humorous example, it does highlight how specific phrases cannot be utilized. 

Your attorney will also assist you with filling out and filing your articles for organization. Here are some of the things it requires:

  • Name of the business 
  • Where it is located 
  • The name and location of your registered agent (e.g., the NY Secretary of State, your attorney)
  • A declaration of whether it is a member-managed LLC or a manager-managed LLC

If you have your required permits and licenses, you must publish your organization’s articles. Although this seems minor, there are several requirements that you must adhere to. Failing to follow them could result in losing the ability to run and operate your business as an LLC. Lastly, you will need to draft an operating agreement. The amount of things it must state and address is extensive but having one is not optional. 

Let’s Get Started 

At Andrea L. Gamalski, Attorneys at Law, we provide quality legal counsel that works to resolve some of your most complex legal challenges. Our consultations are free because we want to know that we can support you before taking anything from you. Give us a call today to schedule your complimentary consultation!

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Andrea L. Gamalski Attorneys at Law

Andrea L. Gamalski understands how important it is to have a compassionate and empathetic family law attorney who fights hard for their clients in the courtroom–mainly because she’s been one of these clients herself.

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