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You don't have to register here. You can register anywhere. NY requires publication of the formation of the LLC in 2 newspapers (exactly which papers they will only tell you when you go down to the office at City Hall - they won't tell you on the phone or in the mail) for six weeks. It costs about $2000.
In Delaware, you just have to pay about $90 to register, there are no publication requirements and you pay your Delaware tax every June (wise people set up their LLC in Delaware in July for that reason) and it's not much, just about $100.
Please keep in mind that if you intend to conduct business in New York and you incorporate in another state you may have to register as a Foreign LLC doing business in New York. If you need to do this, you will still end up having to do the publication requirements.
You'll still pay taxes here. An LLC is a "pass-through entity", so any profits earned automatically flow to the members of the LLC in proportion to their sharing percentages, then personal income taxes are paid on that money. The LLC itself pays no taxes except for a small annual fee to the state in which it was formed.
Yes, the NYS publication requirements are really idiotic. Probably some kind of political favor to the newspaper industry. There is no rational reason for it.
Would it change anything if my business is entirely online i.e we don't provide any physical service. Our business is more in the news, online education sector.
Would it change anything if my business is entirely online i.e we don't provide any physical service. Our business is more in the news, online education sector.
Would it change anything if my business is entirely online i.e we don't provide any physical service. Our business is more in the news, online education sector.
Hey Drkman, I didn't know that! Good advice. I used to be an LLC member, until I sold my share a couple of years ago, but it was a NYS entity so the "foreign" designation did not apply.
To the OP: the definition of "doing business" in NYS is very much a gray area, even according to the state itself (warning: confusing legalese behind that link). However, based on the state's usual M.O., I suspect they would come down on any "Foreign" entity they suspect, demanding fees and threatening litigation, forcing the businessperson to defend himself. This is speculation, but it fits the pattern.
Note that NYS requires an operating agreement too, even for single-member LLCs. More make-work for lawyers, I suppose.
It's amazing. Recently, I was helping out a friend in Atlanta with various aspects of getting his business started. For an LLC, the State of Georgia has you fill out a half-page form and requires the filing of a two-sentence Articles of Organization document (for which they provide a template). That's it. They also validate and return the paperwork within 5-7 business days. Oh, and the fee is only $100, plus $30 per year.
So NYC is not business friendly is the gist of this?
Thanks all. It's not like i'm going to start a Google startup or anything.
I will be a sole proprietor. I'm receiving income from the websites I run but I've filed them under personal income tax.
I plan to expand the business a bit. The LLC part is just to make my sites more legit in order to attract corporate clients. If I have a LLC, then all of my contract will be under my business instead of my personal id.
Does it make sense what I plan to do or should I just keep it personal?
I appreciate the input and the level of expertise this site provides. I plan to talk to an accountant soon but I like to have some background reading before hand.
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