How Much Does an LLC Cost in New York? (A Complete Guide) (2024)

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Last updated: January 8, 2024

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If you intend to form an LLC in New York, you have to factor in the cost to establish one.

As a seasoned Mergers and Acquisitions expert with a deep understanding of New York's legal landscape, I conducted extensive research to uncover the true costs of forming an LLC in the state.

Furthermore, I dedicated countless hours to analyzing state regulations, consulting with experts, and compiling the most up-to-date information.

Quick Summary

An LLC in New York costs $200 for filing the Articles of Organization, and $50 for the Certificate of Publication.
Additional expenses may include fees for reserving a name, annual filing fees based on the LLC's gross income, attorney fees, publication costs, and operating agreements.
Forming an LLC in New York is quite expensive since the filing fee price is one of the highest.
I advise clients who are on a budget to utilize online legal formation services to help streamline the LLC formation process and ensure compliance with state regulations.

Cost To Start an LLC in New York

The cost to start an LLC in New York includes the following:

1. LLC Formation Filing Fee ($200 - Mandatory)

Filing the LLC Articles of Organization officially creates your company and establishes its basic structure and bylaws.

The cost of filing for Articles of Organization varies from state to state. In New York, the filing fee is $200 for an LLC [1].

To shorten the processing period, I availed of the same-day expedited service for $75. The state also offers other options, including a 24-hour delivery and 2-hour turnaround.

2. Certificate of Publication ($50 - Mandatory)

To comply with state regulations, New York LLCs must publish their articles or a notice of formation in two different local newspapers within 120 days of submitting their Articles of Organization.

A $50 state fee is associated with filing the Certificate of Publication to the Department of State.

Furthermore, the New York LLC newspaper publication may cost between $300 and $1,200, depending on the service you use to make your LLC.

If you're looking for a less expensive way to publish your notice of intent, consider publishing it online. I once had a client who used an online legal platform, and it only cost him $10 to publish the notice of intent.

Read our article for more information about publication requirements for LLC in New York.

3. Registered Agent Service Fee ($80-$300 – Optional)

A New York registered agent typically costs between $80 and $300 annually. This fee usually includes access to a registered agent who can receive and forward all important documents and mailings for your business.

4. Name Reservation Fee ($20 - Optional)

To reserve a name for an LLC in New York, you must pay a $20 fee to the New York Department of State, which allows you to reserve the selected name for up to 60 days [2].

This reservation fee ensures that your chosen name remains available for exclusive use during the reservation period.

Expenses Following the Approval of Your LLC

Once the business has been approved, there are additional expenses you may have to shoulder. These include the following:

1. Business License (Depending on Line of Business - Mandatory)

The state doesn’t impose a general business license. However, there are certain licenses and permits that have to be acquired depending on the location and nature of the business.

I have clients who are legal and medical professionals who were required to obtain professional licenses and permits. You can contact the New York Business Express to inquire if your LLC needs a state license [3].

2. Annual Report Fee (Depends on LLC’s Gross Income – Mandatory)

In New York, LLCs are generally exempt from federal and state income tax, but they are still obligated to pay an annual filing fee, which is determined based on the LLC's gross income:

$25 annual report fee: businesses earning $100,000 and below
$50:$250,000 and below
$175:$500,000 and below
$500:$1,000,000 and below
$3,000:$25,000,000 and below [4]

3. Operating Agreement ($100 - $200 - Optional, but Recommended)

An operating agreement entails no cost if the LLC members decide to draft the document by themselves.

If, however, the company would need or prefer the services of a legal professional, they may either use an online LLC formation service or employ a lawyer. One of my clients was charged $100 for an online package, which was completed within a few days.

Online formation services can provide your business with an operating agreement for $100 to $200.

Hiring a lawyer may considerably cost much more but the document will be more specific and tailor fitted for the company.

4. EIN ($0 - Optional, but Recommended)

The Employer Identification Number is required when paying taxes, opening a business bank account, acquiring financial aid, and hiring employees.

You can apply for an EIN on the Internal Revenue Service's website at no additional cost.

Related Articles:

Looking Up an LLC in New York
How to Dissolve an LLC in New York
How to File LLC Taxes in New York

FAQs

How Much Does It Cost to Maintain an LLC in NY?

It costs a few hundred dollars annually to maintain an LLC in New York. Annual filing fees typically range from $25 to $4,500, while publication costs may add several hundred dollars. The exact cost varies depending on filing fees, publication requirements, and additional services required.

Is There A Penalty For Paying My Taxes Late In New York?

There is a penalty for paying your taxes late in New York. The charge ranges between 0.5% to 25% for each unpaid month.

References:

https://dos.ny.gov/articles-organization-domestic-limited-liability-company-0
https://dos.ny.gov/application-reservation-name-domestic-and-foreign-limited-liability-companies
https://dos.ny.gov/forming-limited-liability-company-new-york
https://www.tax.ny.gov/pit/efile/annual_filing_fee.htm

FAQs

How Much Does an LLC Cost in New York? (A Complete Guide)? ›

New York LLC Cost. Forming an LLC in the state of New York costs $200. There are additional fees to consider, such as the $50 Certificate of Publication fee and the $9 Biennial Report fee. We know that starting a business can feel like a minefield of hidden fees, so we've put them all together.

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How much does it cost to set up an LLC in New York? ›

The fee for filing the Articles of Organization is $200. The fee may be paid by cash, check, money order, MasterCard, Visa or American Express. Checks and money orders should be made payable to the “Department of State.” Do not send cash through the mail.

What is the fastest way to start an LLC in NY? ›

You can file your Articles of Organization online, and many would argue it's easier and faster. In order to do this, you'll need to create a NY.gov account on New York's Business Express website and pay a $205 fee. If you'd prefer to do so via mail, that option is also available.

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What is the difference between a sole proprietorship and an LLC? ›

There are important differences between LLCs and sole proprietorships. The most significant difference is whether you have limited liability for the business' debts and obligations, as with an LLC, or whether the business' liabilities and obligations fall to you personally in the event of a lawsuit or debt collection.

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Do LLCs pay franchise tax in NY? ›

Tax responsibilities

An LLC or LLP treated as a partnership may be required to file a Form IT-204, Partnership Return. An LLC or LLP treated as a corporation for federal income tax purposes may be required to file a New York State corporation franchise tax return.

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Does New York have a minimum LLC tax? ›

New York State Income Tax

LLCs taxed as pass-through entities need to pay something known as an annual filing fee. The filing fee ranges from $25 to $4,500 based the LLC's gross income in New York. Most LLCs with S-corp status must pay a fixed dollar minimum tax. The amount paid is based on New York receipts.

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Is New York good for LLC? ›

In New York, LLCs do not have to pay corporate income tax. The members of an LLC have profits and losses passed through to them. The members then report them on their tax returns. This allows for tax savings because there isn't double taxation at the corporate and individual levels.

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What taxes does an LLC pay in New York? ›

A New York LLC will automatically be taxed as a pass-through entity. In other words, the LLC won't pay federal taxes directly. Instead, the revenue the LLC earns passes through the business to you. Then, you'll report your share of the profits on your personal tax return.

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Should I form an LLC in New York? ›

Double taxation on the profits is avoided, and the income is usually taxed at a lower rate. Another advantage to forming an LLC in NY is that you can choose how your LLC is taxed. An LLC with a single member is “ignored” by the IRS for taxation and requires the single-member LLC to file its taxes as a sole proprietor.

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Is a DBA or LLC better? ›

While DBAs don't provide personal liability protection like LLCs do, their lower costs can be attractive for those seeking a simple way to operate under an assumed name. Ultimately, the choice depends on factors such as the desired level of legal protection, business objectives, and financial resources.

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