New York LLC Cost Guide (2024)

How much does an LLC cost in New York?

The fundamental New York LLC cost is the filing fee for the Articles of Organization, which currently costs $205. Without this form, your limited liability company (LLC) won’t exist, so it’s an essential fee. 

But that’s not the only cost you’ll encounter. For example, New York requires you to publish a notice about your LLC’s formation in two newspapers and file a Certificate of Publication, get a registered agent, and more. The exact expenses will vary from one business to another, though. 

Appropriately budgeting for these expenses will help you set a solid foundation for your long-term business finances. That’s why we’ve assembled this guide to walk you through some of the costs you can expect when you create your New York LLC, including:

• Common New York LLC Fees
• Ongoing New York LLC Fees
• Other New York LLC Costs to Consider
• Calculating Your Total New York LLC Cost

Common New York LLC Fees

Here are some of the most common startup costs for a new LLC in New York:

Business Name Reservation Fee in New York

In New York, reserving a business name for your LLC involves a fee of $20. This reservation keeps the name available and exclusively yours for 60 days, providing ample time to prepare and file the necessary formation documents without the risk of losing your chosen name to another entity.

Articles of Organization Filing Fee in New York

The Articles of Organization is a mandatory filing for LLCs in New York, with a fee of $205. This document formally registers the LLC with the New York Department of State. Currently, New York does not offer a waiver for this fee under any standard circumstances. Completing this filing is the first step in establishing your business’s legal foundation in the state.

Registered Agent Fees

Every LLC in New York must designate a registered agent to receive certain legal and official documents on behalf of the company. The cost for registered agent services typically ranges between $100 and $300 annually. This agent must have a physical address in New York and be available during normal business hours to receive important communications.

It’s recommended to hire a New York registered agent service so you don’t have to worry about your compliance. But if you prefer, you can be your own agent, which has zero cost. 

EIN Fee

The Employer Identification Number (EIN) is provided by the IRS at no charge and is essential for tax administration purposes. It’s required for hiring employees, opening business bank accounts, and for tax filing and reporting. Acquiring an EIN is a straightforward online process that does not incur a fee.

New York Publication Fees

Unique to New York, newly formed LLCs must fulfill a publication requirement, which involves publishing a notice of LLC formation in two newspapers for six consecutive weeks. The cost varies significantly depending on the county — often ranging from $500 to $1,500. This requirement is intended to provide public notice of the new business’s formation.

After publication, the LLC must file a Certificate of Publication with the New York State Department of Publication, along with a $50 filing fee. The certificate proves to the state that the LLC has fulfilled the publication requirements. 

New York DBA Name Fee

If an LLC in New York operates under a name other than its official registered name, it must file a DBA (doing business as) name. The filing fee for a DBA name is $25, plus additional costs for publication, which also vary by county. This registration allows the business to operate under a trade name that can be essential for branding and marketing purposes.

Foreign LLC Formation in New York

LLCs formed in other states that wish to operate in New York must register as a foreign LLC. The filing fee for this registration is $250. This helps ensure the LLC is legally recognized in New York and is compliant with state laws, allowing it to conduct business within the state.

New York Biennial Statement

Every two years, LLCs in New York are required to file a biennial statement, which updates the state on the company’s contact information and registered agent. The filing fee for this statement is $9. This requirement helps keep the state records accurate and current.

Certificate of Status in New York

A Certificate of Status, also known as a Certificate of Good Standing, in New York costs $25. This document proves that the LLC is compliant with state regulations and filings and is in good standing legally. It’s often required when the LLC engages in business transactions, such as opening bank accounts or securing financing.

Operating Agreement

New York law requires that LLC members adopt an operating agreement within 90 days of filing their Articles of Organization. However, the operating agreement doesn’t have to be filed with the state like other paperwork, so there isn’t an actual “filing fee” for it. 

An operating agreement typically outlines the ownership and operating procedures of an LLC. It can be drafted without legal assistance using a template, but some business owners decide to hire a lawyer to help draft their agreement. The costs for legal assistance vary depending on the lawyer you hire and the complexity of your agreement.

Ongoing New York LLC Expenses

After you’ve paid your initial filing fees and you’re up and running, it’s important to remember that you’ll have ongoing costs to address, too. Here are some of the most common ones:

Biennial Statement

In New York, LLCs are required to file a Biennial Statement every two years with the Department of State. This statement updates the state on the LLC’s contact information and registered agent details. The filing fee for this statement is $9. Submitting this statement on time is crucial for maintaining the LLC’s good standing with the state, and failure to file can lead to penalties and potential loss of business authority.

Registered Agent Renewal Fees

Every LLC in New York must continuously maintain a registered agent who is available during normal business hours to receive legal documents on behalf of the company. The annual fees for registered agent services range from $100 to $300. This agent provides a reliable point of contact for legal matters and ensures that the business remains in compliance with state communication requirements.

License and Permit Renewals

The costs for renewing licenses and permits in New York depend significantly on the type of business and the specific location. These could include anything from city-specific business licenses (there isn’t a statewide business license) to professional operating permits required by various state agencies. 

It’s essential for business owners to stay informed about their renewal dates and associated costs to avoid interruptions in their legal authority to operate. Our business license report can also help with this step. 

Operational Costs

Operational costs for an LLC in New York can vary widely and include expenses such as rent, utilities, salaries, insurance, and marketing. These costs are influenced by the scale of operations, the industry in which the LLC operates, and location-specific factors. Effective management and regular review of these expenses are critical for ensuring the financial health and sustainability of the business. Planning for these costs is an essential part of any business’s operational strategy.

Other New York LLC Costs to Consider

When establishing an LLC in New York, entrepreneurs need to account for a variety of different costs associated with their business’s long-term financial health. Here are some of the vital ones to address in your New York LLC. 

Specific Licenses and Permits

In New York, the requirement for specific licenses and permits is highly dependent on the type of business and its geographical location. For example, a food service business in New York City will need health department permits, a food handler’s license, and possibly a liquor license if alcohol is served. These licenses and permits come with their own set fees and renewal schedules, which can vary from one locality to another.

The process typically involves submitting applications, paying fees, and undergoing inspections. Businesses must ensure they understand the specific requirements for their industry and location to avoid legal issues and penalties. Staying compliant with these regulations is crucial for maintaining smooth operations.

Certified Documents

LLCs in New York may require certified copies of business documents for various reasons, including registering for licenses, completing banking transactions, or ensuring compliance with legal requests. Certified copies of documents like the Articles of Organization can be obtained from the New York Department of State. The cost for obtaining a certified copy is $10 per document, but you can also request an uncertified copy for $5. 

The process involves submitting a request form, either online or by mail, along with the necessary fee. These documents verify the legitimacy and compliance of the LLC and are often required in formal business and legal situations.

Professional Services

The complexity of managing an LLC often necessitates the services of legal and accounting professionals, especially in a regulatory environment as complex as New York’s. Legal professionals can help ensure compliance with state laws and handle any litigation or legal documentation, while accountants can manage financial records, tax filings, and compliance with state and federal tax laws. 

Costs for these services can vary significantly based on the provider’s reputation and the specific needs of the business. Hourly rates for lawyers can range from $150 to $600 (on average), while accountants might charge a monthly retainer or a yearly fee that could range from a few hundred to several thousand dollars. Hiring these professionals should be viewed as an investment in the LLC’s stability and compliance.

Calculating Your Total New York LLC Cost

In New York, it’s a little difficult to determine the exact startup cost for an LLC because every LLC is a little different. But here are the essentials you can reasonably expect no matter what type of business you’re starting: 

• Articles of Organization: $205 
• Certificate of Publication: $50
• Newspaper Publication Fees: $500-$1,500 on average (but could be more or less depending on your location and the publication you pick)

For many LLCs, the startup costs will range between $750 and $1,750. However, you should also budget for other expenses like rent, utilities, setting up a business website, marketing, and other operating expenses. If you want a more detailed cost estimate, you can use a free online cost calculator. This approach will help you set a realistic budget for your New York limited liability company, helping you successfully manage both expected and unexpected expenses.