Fact Checked by Editorial Staff
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK
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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.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| New York | $200 | Biennial Cost $9 | 4.5% |
| Pennsylvania | $125 | Seek Local Counsel | 6% |
| New Jersey | $125 | $75 | 6.625% |
| Vermont | $100 | $15 | 6% |
| Massachusetts | $520 | $500 | 6.25% |
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
- New York Name Reservation: $20 for online fillings or by mail
- Doing Business As (DBA): $25 for online filling or if filing by mail
- Certified Document Copies: $10
- Certified of Good Standing: $35
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of New York LLC: $60
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
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.
One of the primary expenses associated with maintaining an LLC in New York is the initial filing fee. When forming an LLC in the state, business owners are required to file Articles of Organization with the New York Department of State and pay a fee for this service. This fee can vary depending on the type of LLC being formed and other factors, but it can be several hundred dollars or more. In addition to the initial filing fee, there may be additional fees for expedited processing or other services.
Once an LLC is formed, there are ongoing costs associated with maintaining its status in New York. One of the most significant of these costs is the biennial filing fee, which is required every two years to keep the LLC in good standing with the state. This fee can also vary based on the size and type of the LLC, but it can be a significant expense for many business owners to budget for regularly. Additionally, there may be other compliance requirements that carry their own costs, such as annual reports or other filings.
In addition to the state-mandated costs of maintaining an LLC in New York, there are other expenses that business owners should be aware of. For example, legal fees may be necessary to navigate complex regulatory requirements or to draft contracts and other legal documents. Accounting and bookkeeping services may also be necessary to ensure that the LLC’s financial records are accurate and up to date. Depending on the size and complexity of the business, these costs can vary but should be factored into the overall budget for maintaining an LLC in New York.
Overall, the costs of maintaining an LLC in New York can be substantial and should not be overlooked by business owners. While the benefits of operating as an LLC, such as limited liability and pass-through taxation, are valuable, they come with a price tag that should be considered when budgeting for the future success of the business. By understanding the various costs associated with running an LLC in New York and planning accordingly, entrepreneurs can better position themselves for long-term growth and sustainability in the state’s competitive business environment.
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.