How Should a Sole Proprietorship Set up a LLC in NY?

Years ago forming an LLC was a huge pain. You had to Google your secretary of state, navigate their horrendous websites to find the right forms, print them, fill them in, and mail it with a check all while praying that everything was done adequately. The alternative route was finding a lawyer to do it for you for $1500-$2000.

Now, creating an LLC is much cheaper to set up in New York, but still a little burdensome. You just need to submit the right registration form (DOS-1336), abide by the publication requirements, and pay the pertinent fees associated with formation. However, New York is unique in that it also requires an operating agreement which delineates the rules/responsibilities of the members (even if you’re just a single member LLC). Even if it’s only you involved with the business, you should ideally sit with a lawyer and draft up the rights, duties, liabilities, and obligations particular to the LLC. Keep in mind that you don’t have to file this with the Department of State as it is meant to be kept internally.

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