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.

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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 costs associated with running a New York LLC can vary widely depending on whether you go the DIY route or hire a professional. This means you should make sure you get good value for your money. Many of the expenses you will incur as an LLC can be written off as legitimate business expenses. If you need help evaluating these expenses, your tax professional should be able to help.

New York state requires a number of fees and legal documents in order to start a LLC. One of the most important ones is the Articles of Organization. This document is a one-time filing that puts your company on the Department of State’s books. You can file this document online or in person. Once you have this in hand, you can move on to the next step.

The Certificate of Publication is another required document. This document certifies that you have fulfilled the minimum requirements for publication. In New York, the minimum requirement is to publish your notice of formation in two newspapers for six consecutive weeks. However, the costs of publishing this document can vary greatly based on where you live. For instance, you may pay as little as $8 to publish your notice in Albany. On the other hand, you could have to spend over $2000 to publish your notice in the Big Apple.

You might also be able to save some money by hiring a registered agent to handle your correspondence. A registered agent is an individual or a service that complies with the state’s regulations. They can provide you with the benefit of privacy, and can help you meet your other compliance obligations.

Another important document you will want to file is the New York Certificate of Authority. This certificate is necessary in order to legally collect sales taxes from customers. It also outlines periodic and annual LLC fees. Your accountant or other qualified professional should be able to provide you with the most up-to-date information on these fees.

In addition to the above-mentioned costs, you will have to pay federal and state taxes. These taxes vary based on your type of business. Some states require a certain amount of income tax to be paid each year, and others have an annual flat tax for all LLCs. Other states, such as California, have a low tax rate, so you will not have to worry about a big bill when the tax season rolls around.

There are other costs you might need to pay to keep your new LLC in good standing. This might include a business license and permit, or payroll taxes. Even if your business is not registered, it will be required to have a valid federal tax ID number, or EIN. This is similar to a social security number, and is used for filing taxes and hiring employees.

If you are considering setting up a new LLC, you will probably want to consider hiring a qualified attorney to complete the paperwork for you. Some lawyers charge a small fee, while others charge hundreds or even thousands of dollars. Make sure to shop around and ask about the experience and cost of different attorneys before signing a contract.

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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