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

The cost of maintaining an LLC in New York is minimal. You’ll have to pay a small annual fee to the New York Department of State, which is a small fee compared to the total of operating costs of an LLC. There are also annual reports that need to be filed, and the state requires that you register a registered agent to be contacted when your business is in trouble.

Another cost associated with operating an LLC in New York is the fee for filing the articles of organization and the notice of formation. These documents must be published in two newspapers and the company must submit an affidavit of publication to the Department of State to prove that it was published in the newspapers. The fee to publish the articles varies depending on the county, but it usually ranges from $100 to $500 per year. The fee to file the certificate of publication is $50 per year.

The next step is filing taxes. In New York, LLCs must file quarterly Combined Withholding and Wage Reporting and Quarterly Unemployment Insurance Returns. If the business employs workers, it must also register with the NewY Business Express System and file Sales and Use Tax Returns. These fees are usually much smaller than the one-time fees. The cost of maintaining an LLC in New York is very low in comparison to many other states.

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.

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