Starting a business is literally an emotional roller coaster ride. It’s fun and sacry, yet confusing and sometimes annoying. Overall, once the structure of an LLC has been created, the role of entrepreneurship is a hat that you will proudly wear as you move forward.
LLC is short for Limited Liability Company. It’s a business structure where the owners are not personally liable for the companies’ debts and liabilities. In general, an LLC helps protect the owners personal assets if the company faces bankruptcy or lawsuits. Click here for more additional details. The information that will be shared in this article is based on living and building a business in the state of New York. Rules and regulations are different for many states so please check your home state or local county for the proper information required in building an LLC business.
There are so many things to expect when starting an LLC but I will give you six simple expectations to focus on when forming your business.
Expectation # 1
Your first step is to decide on a business name and register that business name with your state or county. The name of the business you choose will be based on the availability. If you’re not sure on the availability of the business name, then go to the Department of State website where there’s a link called corporation and business entity database to help you get the results you will need.
Once the business name is registered, you will form the business structure as an LLC through the NYS Business Express website. What’s great about using the NYS Business Express platform, is that it will literally provide a checklist for everything you will need to start your business. It cuts all the guessing work out on forms you may or may not need to the business you are creating.
Expectation # 2
Now that you have your checklist in handy, you will start to register your LLC. With an LLC, it’s required that you fill out the Articles of Organization form which cost $200 and Certificate of Publication form which cost $50. Both are non-refundable filing fees. The average processing time will be seven business days which does not include weekends.
You will also need to register for the Sales Tax Certificate of Authority which is a registration authorizing the collection of sales and use tax on the sale of tangible personal property, rentals, specific taxable services and purchases of tangible personal for resale. With this in handy, you will have the minimum of three years to carry and it will take five business days to process once the application is completed.
Expectation # 3
This is also one of the most important things to get for your business which is an EIN (Employer Identification Number). EIN is a federal tax identification which is very similar to a personal social security number but specifically assigned to your business. You will need this for the IRS which helps them identify you as a taxpayer for your business. If you were to sell your business, you cannot transfer or give the EIN to the new business owner. He/she would have to apply for their own EIN.
Applying for an EIN online is really simple to obtained. There’s no waiting time and you will received it immediately. If you choose to apply a form where you can fax or mail, then it will take about two weeks to receive your EIN.
Expectation # 4
Check your local county for specific requirements needed for your LLC to be filed for an Affidavit of Publication, which your county will have a list of partnered local daily or weekly newspapers that you will be able to reach out to. This has to be done for six consecutive weeks with the newspaper of your choice. Once it’s complete, you will get a copy of the Affidavit of Publication mailed to you. You will use the same Affidavits to forward with the Certificate of Publication form with a $50 filing fee sent to the Department of State. You have 120 days after formation of your LLC to complete this requirement.
If you fail to do so, the LLC’s authority to carry on, conduct, or transact business in New York will be automatically suspended (see Section 206(a) of the New York Limited Liability Company law).
Expectation # 5
If you have employees that you are going to pay, you will need to know all the required information based as an employer obligations for registration on unemployment insurance, withholding, and wage reporting. You will also need to know information on NYS workers’ compensation insurance and NYS disability and paid family leave benefits insurance. All of this information is available on the Business Express Checklist platform.
Expectation # 6
Filing your first tax due date. You will receive a specific due date for business taxes depending on the industry you are working in. Not all businesses are required to do this (some businesses are exempt but you have to file exemption to qualify). However, if you do please be sure to be organized, well prepared and accurate in what you file. If you know this may be a section that you are not comfortable doing on your own, I would advise that you reach out to a professional that can help you with this. The Department of Finance will send you a link where you will register for a username and password to begin your taxes. Your LLC may have to file every quarterly or annually. It really depends on the profits you make with your business.
In conclusion, that’s all you will need to form an LLC before you continue to building and growing a business. It seems a lot to do but it’s really not that bad once you know what you have to do and what’s required in the industry you are entering in for business. You will have to come out of pocket for filing fees, but that’s the investment we have to dish out in order to be an entrepreneur. Good luck with everything and wishing you much success in your business endeavors!