How to Start an LLC in New York

Step 6: Receive a certificate from the state

The state will issue you a certificate that confirms the LLC formally exists after the LLC's formation documents are filed and approved. It might take up to seven weeks to receive your certificate.

This certificate will allow the LLC to obtain an employer identification number (EIN), business licenses, and business bank account.

7. Obtain an employer identification number (EIN)

The nine-digit EIN is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.

The purpose of an EIN is to assist with the following:

• File and manage taxes at the state and federal level
• Open a business bank account
• Hire employees

New York LLC costs

We’ve touched upon many of the costs associated with forming an LLC in New York throughout this article. While most of the initial formation costs are consistent, some ongoing costs for your LLC may vary. Here’s a general overview of common costs and price ranges for services associated with an LLC:

• Articles of organization filing fee: $200 + $5 paper copy fee
• Biennial fee: $9, to be paid every two years
• Annual filing fee: $25 to $4,500, depending on business gross income
• Newspaper publication costs: $600 to $1,200
• Certificate of publication: $50
• Registered agent fees (if using an additional agent or service): $49 to $300
• Reservation of business name: $20

New York LLC tax considerations

As a New York LLC, adhering to various tax requirements is an obligation. These include:

• Federal income tax
• Sales tax
• Self-employment tax
• Payroll taxes
• Other state taxes, depending on your business's structure and activities

In New York, multiple-member limited liability companies assume the taxation status of a partnership, while a single-member limited liability company is treated as a disregarded tax entity, with members responsible for paying taxes on the LLC's income.

It’s important to note that certain cities in New York—such as New York City and Yonkers—impose an additional local income tax on their residents. This is a critical consideration for any LLC owners who live in these cities, since LLC income is reported on your personal income tax return.

The sales tax rate in New York is 4%, with counties and municipalities adding their own taxes, resulting in combined rates of 8% or more in some jurisdictions. Be sure to stay informed about the tax requirements and rates specific to your industry and location and the frequency of sales tax remittance.

Business licenses and permits in New York

While there’s no statewide general business license requirement in New York, you may still need to get one at the local level. You can check with your city or county clerk’s office to determine what type of license, if any, is required.

Additionally, you’ll likely need several other types of licenses and/or permits to operate your LLC legally. The exact number and types of licenses needed will vary depending on what industry you are in and your intended business operations. You can use the New York business wizard tool to guide you through this process, but here’s are a few examples of common permits and licenses that some businesses need:

• Sales tax permits. If your business involves selling goods or providing services to the public, you’ll likely need to apply for a permit to collect sales tax.
• Occupational licenses and permits. If you work in an industry that requires professional certification or licensing—such as the medical field, real estate, cosmetology, automotive repair, or accounting, to name just a few—you’ll need to obtain these and renew them as required by law.
• Construction and land use permits. If you’re building a storefront, upgrading an existing business structure, or adding signage, you may need a permit.
• Federal licenses and permits for regulated industries. If you work in certain industries—like agriculture, aviation, firearms sales, meat production, or transportation—you could require special licensing from the federal government in order to operate legally.