Starting a business involves a lot of decision-making. But probably one of the first -- and most important -- decisions is determining what type of business to form. The types of business structures available to you are based on state laws, but generally include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs).
Each type of business has a variety of advantages and disadvantages. For example, while a sole proprietorship is the easiest to start, it also leaves the owner exposed to personal liability for the business. In contrast, a corporation protects the owner(s) from personal liability, but involves complicated paperwork that must be filed with the state government. In addition, corporations must observe various formalities in order to maintain their corporate status.
An LLC can be described as a hybrid of these two types of business, which is the reason this business structure is popular among small businesses. Read on to find out how you can form a New York LLC for your business.
Forming an LLC in New York
In order to form an LLC in New York, the principal must be a resident of the state and the business entity must be in New York. Each state also has a variety of responsibilities and requirements associated with forming an LLC. In New York, the main requirements include:
If you've decided to form an LLC for your business, often times, you can prepare and file the necessary paperwork on your own. Check out FindLaw's do-it-yourself New York LLC Formation Package today to get started.
New York LLC Formation at a Glance
While the actual text of the law is a good source of information, it's rarely written in an easy-to-understand manner. For this reason, it's very helpful to read an overview that summarizes the laws you're researching. In the following table you can find a summary of the laws on forming New York LLCs as well as links to relevant statutes and state government agencies.
|Statute(s)||New York Consolidated Laws, Limited Liability Company Law - LLC|
|Step-by-Step Process of Forming an LLC||
Forming an LLC in New York requires taking the following steps:
|State Agency in Charge of LLC Formation||
The New York Department of State, Division of Corporations is the agency in charge of LLC formation in New York.
New York Consolidated Laws, Business Corporations Law - BSC
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
New York LLC Formation: Related Resources
If you'd like additional information and resources related to this topic, please click on the links listed below.
Get Legal Help with Your New York LLC Formation Questions
While the information and links above provide good guidance on how to form an LLC, improperly forming your business can expose you to liability. If you have questions about forming an LLC in New York, or simply want the help of a knowledgeable legal professional, it's best to consult with a skilled business organizations attorney in your area.
Contact a qualified attorney.