How Much Does an LLC Cost in New York?

How much do LLC articles of organization cost in New York?

Articles of organization are documents that you must file to start your LLC. 

Articles of organization for a New York LLC include the following information:

• The name of your LLC
• The county where your LLC office is located
• The post office address or email address where the New York Secretary of State should send any processes that have been served against the LLC
• The filer’s name and address (must be different from the LLC being formed)

The New York LLC filing fee for articles of organization is $200. The fee must be paid to the New York State Department of State.

How much is the New York LLC formation filing fee?

The formation filing fee for an LLC in New York is the cost of filing your articles of organization, which is $200. 

Additionally, New York has a publication requirement for LLCs: Within 120 days of the articles of organization going into effect, an LLC must publish a copy of the articles of organization or a notice about the formation of the LLC in two newspapers designated by the County Clerk. 

The LLC must then send a completed Certificate of Publication, a publication fee of $50, and affidavits of publication to the New York State Department of State. If an LLC does not meet the publication requirements, its ability to conduct business will be suspended. 

Keep in mind that you will also need to pay to publish the notification in the two newspapers. Publication fees vary by newspaper. 

How much is the New York statement of information fee?

Many states require LLCs to file an annual report, sometimes called a statement of information. New York, on the other hand, requires LLCs to file a Biennial Statement every two years.

The Biennial Statement should contain the following information:

• CEO’s name and business address
• Street address of the LLC’s principal executive office
• Address where the New York Secretary of State should send copies of process (legal filings) it accepts on the LLC’s behalf
• Number of board directors and number of women who are board directors 

The Biennial Statement can be filed online, and the filing fee is $9.

How much does a registered agent cost in New York?

A registered agent serves as a primary contact for an LLC and receives legal documents such as service of process for an LLC. All LLCs need to have a registered agent.

In New York, the New York Secretary of State is the default registered agent for service of process for an LLC. However, you do have the option to designate a registered agent, use a registered agent service, or serve as your own agent for service of process in addition to the New York Secretary of State.

You can include the name and New York address of your chosen registered agent along with a statement that they will be your LLC’s registered agent on your articles of organization. 

A registered agent must fulfill the following requirements:

• Be at least 18 years old
• Be available during regular business hours at an address where they can receive important notifications

A registered agent service can help protect your LLC (and your privacy) and save you time that would otherwise be spent completing and filing paperwork or keeping regular business hours to ensure you get critical legal notifications. 

In New York, a registered agent service can cost from around $100 to $350 or more. If a registered agent steps down, the resignation of a registered agent fee is $20. 

How much does a New York seller’s permit cost?

LLCs that make sales in New York that are subject to sales tax must obtain a seller’s permit (officially referred to as a Certificate of Authority). A Certificate of Authority enables businesses to collect tax on sales and distribute and accept New York State sales tax exemption certificates. There is no fee to apply for a New York Certificate of Authority. 

You should register your LLC with the New York Tax Department at least 20 days before opening your business. Once you obtain a Certificate of Authority, you must display it in your business at all times. Operating a business without a Certificate of Authority can result in penalties of up to $10,000. 

How much do local business licenses cost in New York?

The cost of a local business license in New York depends on your location and business type. To find out how much local business licenses cost, you will need to contact the Clerk in the municipality where your LLC is located. 

For example, a pedicab owner in New York City must pay a licensing fee of between $55 to $165 to obtain a pedicab business license.

How much is the annual LLC fee in New York?

Certain LLCs are required to fill out Form IT-204-LL each year and may need to pay a filing fee to the New York State Department of Taxation and Finance. 

The amount of the annual LLC fee in New York depends on the New York source gross income from the preceding tax year. New York source gross income is the amount of the LLC partners’ or members’ shares of federal gross income derived from New York sources, with no allowance or deduction for the cost of goods sold (direct cost of producing goods). 

The filing fee for LLCs based on their amount of New York source gross income for the preceding tax year is as follows:

• $0 to $100,000: $25
• $100,000 to $250,000: $50
• $250,000 to $500,000: $175
• $500,000 to $1,000,000: $500
• $1,000,000 to $5,000,000: $1,500
• $5,000,000 to $25,000,000: $3,000
• 25,000,000 or more: $4,500

How much does business insurance cost in New York?

The cost of business insurance for an LLC in New York can vary widely depending on your industry, the types of insurance you need, and the amount of coverage you want. 

Business insurance coverage can include the following types of policies:

• General liability insurance: Can cover financial loss from bodily injury, property damage, and defending lawsuits. 
• Professional liability insurance: Covers financial loss from errors or negligence. Also known as errors and omissions insurance or E&O insurance.
• Product liability insurance: Protects against financial loss from a product that injures a user.
• Commercial property insurance: Covers property damage caused by covered events such as fires, wind storms, or vandalism.
• Business owners policy (BOP): Bundles different policies to help business owners get the coverage they need.
• Worker’s compensation insurance: Covers medical expenses arising from an employee’s work-related injury or illness. All businesses in New York that have employees are required to carry worker’s compensation insurance. 

According to Insureon, an independent business insurance marketplace, the average cost of general liability insurance in New York is $41/month, worker’s comp is $37/month, and professional liability insurance is $70/month.

What is the New York franchise tax?

The New York franchise tax is a tax charged by the state that applicable businesses must pay in order to do business within New York state. 

An LLC in New York can be treated as a sole proprietorship, partnership, or corporation. An LLC structured as a corporation for federal income tax reasons may need to file a New York State corporation franchise tax return.

The franchise tax can be calculated based on business income, business capital, and fixed dollar minimum tax, as well as the metropolitan transportation business tax (if applicable). 

Other New York fees and business costs you might encounter

You may have other fees and business costs beyond what is listed here when starting an LLC in New York, such as the cost of any required permits, licenses, or registrations. 

For example, you need to register with the New York Tax Department before operating a business in New York. New York businesses are subject to business and excise taxes and may need to obtain a permit or pay licensing fees depending on the business type.

What is the total cost to start an LLC in New York?

The total cost of starting an LLC in New York can vary depending on your business type and needs and can include the initial filing fees, publication fees, and the cost of procuring a registered agent service, among others. 

Here’s a breakdown of potential New York LLC costs (not including annual or recurring fees):

• Publication fee: $50
• Cost of publishing articles of organization in two newspapers for six weeks: Varies depending on the newspaper
• Articles of organization filing fee: $200
• Registered agent service: ~$100 to $350
• Certificate of Authority: $0
• Business license: Varies based on location and business type
• Business insurance: Varies depending on amount and type of coverage; average cost of $49 per policy
• Franchise tax: Depends on business type and income amount 

In all, the total cost of starting an LLC in New York could range anywhere from around $300 to $800 or more. 

FAQs

Does it cost more to register a foreign LLC in New York?

Yes, registering a foreign LLC in New York does cost more than registering a domestic LLC. The fee for filing the articles of organization for a domestic LLC in New York is $200. Foreign LLCs must file an Application for Authority with the New York Department of State, which has a filing fee of $250.

Can you get grants to help cover the cost of starting a business in New York?

Yes, there are grants to help cover the cost of starting a business in New York. 

For example, the New York Empire State Development fund offers a $5,000 business development grant to certain New York-based certified suppliers. 

Do New York LLCs have to have an operating agreement?

Yes, New York does require LLCs to have a written operating agreement in place. An operating agreement explains how the LLC is organized, how it will be managed, what each member is responsible for, how members get paid, and what happens if members disagree or if the LLC dissolves. 

While you aren’t legally required to file an operating agreement or pay any associated fees, you should create and keep one in your personal records. 

What’s the cheapest way to start an LLC in New York?

The cheapest way to start an LLC in New York is to create your own operating agreement, file your formation documents on your own, and designate yourself as your LLC’s registered agent. 

Depending on the complexity of your business, you might want to hire an attorney to help you form your LLC and ensure all your ducks are in a row before you start doing business. LegalZoom offers a variety of guided LLC formation packages for different levels of complexity.

Does the Internal Revenue Service classify LLCs as corporations?

The IRS can treat an LLC as a corporation, partnership, or “disregarded entity.” If an LLC wants to be treated as a corporation by the IRS, it can file Form 8832, Entity Classification Election.