| A Limited Liability Company or LLC is a legal structure | | | | required to observe some formalities like keeping a |
| of ownership that is similar to corporation. It protects | | | | detail financial record and recording the minutes of |
| the owners from becoming personally liable to | | | | meetings and major decisions. |
| business debts. On the contrary, while operating a | | | | While selecting the name of your LLC, you must |
| partnership or a sole proprietorship, it is your | | | | keep the following things in mind: |
| responsibility to deal with all your business debts. | | | | - Must contain the words LLC, L.L.C. or Limited Liability |
| However, LLC is much easier to be set up and | | | | Company in the name |
| operate, as compared to a corporation. The three | | | | - Should be different from any other LLC, foreign |
| basic steps to form an LLC in New York are: | | | | LLC or authorized name registered with the State |
| · Choosing name of your LLC: The business | | | | Department |
| name that you choose cannot be same as name of | | | | - Must not have any prohibited words, phrases, |
| any other business entity filed with the State | | | | abbreviations or derivatives |
| Department. You can search the online database to | | | | - Should not contain following phrases such as board |
| find out whether the name you have chosen has | | | | of trade, chamber of commerce, state police, state |
| been registered with any other business entity. As | | | | trooper, tenant relocation, community renewal, |
| far as New York LLC is concerned, the name should | | | | corporation, urban development, urban relocation, |
| contain abbreviations 'L.L.C.' or 'LLC' or words 'Limited | | | | partnership or incorporated |
| Liability Company'. | | | | - Should not contain words such as acceptance, |
| · Filing the formation documents: In New | | | | indemnity, guaranty, assurance, annuity, insurance, |
| York, a formation documents is known as articles of | | | | investment, attorney, bank, benefit, lawyer, |
| organization and you need to prepare and file them | | | | mortgage, loan, doctor, trust or finance unless |
| with the State Department. These documents are | | | | approved by the authorities |
| required to contain the name of your LLC, its | | | | - Should not contain words such as handicapped or |
| address, its purpose and name and address of the | | | | blind, unless granted by social services of the state |
| registered agent or agency. | | | | department |
| · Publishing notice in the local newspaper: In | | | | - Should not contain the word 'exchange' unless |
| New York, you are required to publish a notice in the | | | | approved |
| local newspaper which states that you are intending | | | | The best thing is to choose at least three names as |
| to form a New York LLC. The newspaper will be able | | | | preferred and conduct a search to see the files. |
| to help in filing the document. | | | | The articles of organization are required to be signed |
| Though it is not mandatory, you must create an | | | | by 2 persons and delivered to the State Secretary. |
| operating agreement for the LLC, which will guide the | | | | This information should include the name of the LLC, |
| owners to operate the business like a corporate | | | | the duration of the LLC, its principal area of office or |
| bylaw, or partnership agreement. These documents | | | | business, detail about the registered agent, detail |
| are not needed to be submitted to the State | | | | about any LLC debts, liabilities and obligations and any |
| Department. Finally, in order to gain the status of | | | | other provisions such as purpose of the LLC and |
| separate entity for your LLC, the members are | | | | provisions laid in operating agreement. |