A limited liability company (LLC) is the ideal business structure for all kinds of entities across a broad range of industries. Whether opening a coffee shop, accounting firm, or computer repair store, establishing an LLC will protect you from personal liability, provide tax advantages, and allow for ownership flexibility. To enjoy these benefits, however, you must follow strict guidelines when setting up an LLC. Below is a brief rundown of the process so you know what to expect along the way.
What You Need When Setting Up an LLC
1. Complete & File Articles of Organization
After deciding on the name of the venture—and confirming that it’s available—you must file Articles of Organization with the state. It’s wise to seek guidance when preparing this document, which essentially outlines the entity’s rights, liabilities, powers, and duties. Failing to address certain details in the Articles of Organization could pave the way for contentious disputes, so turn to a professional who has experience organizing businesses.
2. Submit a Certificate of Publication
New York requires all LLCs to publish their Articles of Organization within 120 days of formation. You must publish this document in two newspapers approved by the county clerk of the county you named in your Articles of Organization. Upon meeting these requirements, you will receive affidavits of publication, which you can use to complete a Certificate of Publication. You must then submit this document to the New York Department of State.
3. Draft an Operating Agreement
Technically, before you can run an LLC in New York, you must create an operating agreement. This document states in no uncertain terms the relationship between each owner, as well as the company’s standard operating procedures. As an internal document, the operating agreement does not actually have to be filed with the state. However, most single person LLC’s do not need an operating agreement
4. Apply for an Employer Identification Number
Your company will need an Employer Identification Number (EIN) from the IRS to complete essential financial transactions. For example, obtaining an EIN will allow you to open business bank accounts and manage payroll for all future employees. Having an EIN is also necessary for both state and federal tax purposes.
When it comes to setting up an LLC, We The People of NY can help. Based in Manhattan, this locally owned and operated company has been assisting individuals, couples, families, and entrepreneurs with legal document preparation for more than a decade. Their areas of expertise include divorce, bankruptcy, estate planning, trademarks, and business filings. To learn more about their services for setting up an LLC, visit their website or call (212) 633-2200.