If you are an entrepreneur, you might be encouraged to choose an LLC or Limited Liability Company. It is because aside from the benefits of having an unlimited number of members allowed in a company, you also don’t have a personal responsibility when it comes to the business’ debts and liabilities.
LLC is a type of legally recognized business entity that is why it must be certified by the state from which your business is located or founded. From all the states in the country, New York City (NYC) might be one of your top choices as it’s known as being the third-largest economy in the country.
To guide you with your startup LLC business in NYC, check this blog out:
1. Understand What LLC Truly Is:
Unlike any other business entities, an LLC business is much more legitimate as it is a legally-recognized business. As many business professionals say, it is a hybrid-structured business that merged the corporations’ and partnerships’ advantages. The synopsis is: it protects the assets of the owners and it enables members to apply taxation at the corporate level.
2. Register Your LLC Along With Its Standard Name:
As LLC is a legally recognized business entity, you need an agent who is licensed or registered in New York to make your LLC possible. The Secretary of the State could be your first option. Still, you can opt to have another registered agent service. On the other hand, naming it could be a crucial part as there are guidelines for this legal-type of business.
3. Get Prepared Articles of Organization:
It is perhaps the most essential document in launching your LLC. This legal document serves as a doorstep to your LLC business formation. It includes information such as your LLC name, purpose, name, and address of the registered agent of your LLC. To guide you with the process, you will send your application by mail or electronic mail. The LLC cost NY is payable for a non-refundable fee of $200 to cover the state filing.
4. Assess If You Need Investors:
Having inventors truly allows you to have a more supportive capital and foundation for your LLC. However, it may also complicate you from everything. As a startup business, you would be unfamiliar with some matters so make sure you are well-prepared to take risks and to face challenges. If you opt to have investors, ensure that you negotiate and communicate well with them, indicating the terms and conditions of the agreement, and other legal matters.
5. Get Familiarized With The Legal Requirements:
Legal documents and requirements are the highlights of an LLC. Aside from the Articles of Organization, you must also know the Operating Agreement, the process on how to acquire a federal ID and how to open business accounts, as well as obtaining the other licenses and permits.
Establishing a startup LLC in New York would never be easy. Yet, by choosing NYC as your state, surely you got the right place. Grab this guide and turn your business plan into reality today.