LLC Cost in New York – How Much to Pay for an LLC


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Perhaps you are hoping to form a New York LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in New York.

New York LLC Cost of Filing

Here are the costs involved in forming an LLC in New York.

Cost of Filing Formation Certificates

The New York Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the New York Secretary of State

New York Domestic LLC

  • Online Filing costs $200. 
  • Biennial Report filing costs $9
  • Name Reservation fee costs $20
  • Certificate of Publication Fee: $50 (non-refundable). Download the PDF form and send it to Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.
  • By Mail: Fill out the application form, and send it to New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. Costs $200.

New York Foreign LLC

  • By Mail: Fill out the application form, and send it to New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. Costs $250.
  • Certificate of Good Standing Fee: $25. Fill up the form and send it to Department of State Division of Corporations, State Records and Uniform Commercial Code, One Commerce Plaza, 99 Washington Ave. Albany, NY 12231.
  • Biennial Report filing costs $9
  • Name Reservation fee costs $20

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

New York LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in New York, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the New York Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes Payable to New York Department of Revenue

There are a number of taxes that are to be paid in New York while registering your LLC. The taxes are levied by Federal & State governments.

State Income Tax

The State Income tax is levied on all the earnings you draw from your LLC. The earnings you make shall be taxed through your personal tax return. The standard income tax rate in New York ranges from 4% to 10.9%, calculated basis the earning you make. You can apply for all the standard allowances and deductions.  

State Sales & Use Tax 

Any seller of Tangible goods, Goods like Furniture, cars, electronics, etc., or a  service provider company has to pay the sales & use tax in New York. The current state sales & use tax rate on LLC in New York is 4.5%

Federal Self-Employment Tax

The Federal Self-employment tax is levied on all the members or managers of the LLC. Similar to State Tax, this Federal Tax is also calculated on the basis of all the earnings you draw from the Company. The Federal self-employment tax rate in New York is 15.3 percent. 

Federal Income Tax

If you are registering your LLC in New York, you have to pay Income tax even to the Federal Government. This tax is calculated on the basis of your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.

The Federal Income Tax is levied on all the profits your LLC makes after calculating the deductions & allowances such as Healthcare or Retirement Plans.

Employee & Employer Taxes

The Employee & Employer TAxes may vary, depending on various factors, e.g., the amount, number of employees, etc. Every LLC in New York, which has a number of employees earning a monthly salary, is bound to pay these taxes.

Cost Comparison between states

The neighboring states of New York are Pennsylvania, New Jersey, Vermont, Massachusetts, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
New York$200Biennial Cost $94.5%
Pennsylvania$125Seek Local Counsel6%
New Jersey$125$756.625%
Vermont$100$156%
Massachusetts$520$5006.25%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in New York.

Other Costs

How Much Does It Cost to Maintain an LLC in New York

To maintain an LLC in New York you will need to pay a biennial fee of $9 along with state sales & use tax at 4.5%, state income tax at 4% to 10.9% and federal taxes.

The cost of maintaining an LLC in New York varies based on your needs. Some businesses need annual license renewals, while others don’t need to renew at all. However, all businesses must pay a $9 biennial report fee, which is small compared to other business fees. To learn more about the different fees, visit the New York Department of State.

The initial fee for forming an LLC in New York is $50. However, after that, the expenses can mount. For example, an LLC in Bronx County may cost as much as $2,100. In addition, an LLC must publish articles of organization in two newspapers. These publications can cost anywhere from a few hundred to several thousand dollars. Once published, an LLC must also file for its federal tax ID (also known as an employer identification number). The state also requires that it register with the Department of Labor.

Another major expense for forming an LLC in New York is attorney fees. A lawyer can cost you several thousand dollars, depending on your situation. You may be able to save money by using an online legal form service, which often offers discounts. You can also negotiate with your attorney to receive a lower fee.

If you choose to register your LLC with the New York Department of State, you must check if the business name you’re considering is available. If it is, you can file for a name reservation. This will not change your business’ legal name, but it will help you market your business. You must also pay the state’s name reservation fee of $20. However, if you plan to change your name later, this fee is not necessary.

If you choose to register your LLC in New York, you’ll need to publish notices of your business in two local newspapers. You’ll also need to file for a Certificate of Publication. Both of these expenses cost money, and can add up over time. It’s a good idea to make the most financially sound decisions when forming your LLC.

Filing annual reports is another requirement for LLCs in New York. These annual reports are also the state tax reporting form. The filing fee for filing an annual report starts at $25 and can rise to up to $4500 depending on the amount of income you expect your business to make in New York. New York also requires that your articles of organization be published in two state circulating newspapers. You must also file Form 1065 with the IRS if you have more than one member.

Depending on your business needs, you may need federal, state and local permits. Additionally, you may need to incorporate a different business structure for your new LLC. You’ll also need to choose a registered agent for your LLC. Finally, you’ll need to decide on a name. New York requires you to register an LLC with the New York Department of Taxation and Finance (NYDTF) in order to operate in the state.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of New York is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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