How Much Does an LLC Cost in New York? (A Complete Guide)
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.
Also, consider utilizing professional New York LLC formation services to streamline the process and ensure compliance. These services can assist you with the necessary paperwork, legal requirements, and filings to establish your LLC efficiently.
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.
- Notably, sectors such as Healthcare and Social Assistance, Educational Services, and Retail Trade, representing 38.2% of New York's employment in 2024, according to the Ibis World, may influence specific business licensing requirements.
- 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, as noted on the Department of State website [1].
According to the New York Department of State, expedited processing options are available for an additional fee, including \$25 for 24-hour processing, \$75 for same-day processing, and \$150 for 2-hour processing, highlighting the state's flexible service offerings for urgent filings.
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 with 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 LLCs in New York.
"All LLCs in New York are required to publish a copy of their Articles of Organization or a notice of their LLC's formation in two New York newspapers—one daily and one weekly—within 120 days of filing their Articles of Organization."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
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.
Given the significant roles that the Healthcare and Social Assistance, Educational Services, and Retail Trade sectors play in New York's economy, contributing to 38.2% of the state's employment in 2024 per Ibis World, professionals in these fields might face unique licensing requirements [3].
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 [4].
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 [5]
Additionally, the economic impact of small businesses is substantial, as evidenced by their contribution to a net increase of 389,007 jobs in the past year, accounting for 76.5% of total job growth, according to Small Business Administration [6].
This data highlights the critical nature of managing operational expenses for growing businesses in New York.
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 cost considerably cost much more but the document will be more specific and tailor-made 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.
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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% and 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://www.ibisworld.com/united-states/economic-profiles/new-york/
- https://dos.ny.gov/forming-limited-liability-company-new-york
- https://www.tax.ny.gov/pit/efile/annual_filing_fee.htm
- https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-NY.pdf
