Business Formation

Business formation is the legal process of setting up your company the right way from day one — choosing a structure (like an LLC, corporation, or partnership), filing the required paperwork with New York State, and putting the internal documents in place that protect you if things ever get complicated. It sounds like a formality, but the structure you choose affects your personal liability, your taxes, and how easily you can raise money, bring on a partner, or sell the business later.

In New York specifically, formation comes with a few extra steps most other states don't require — most notably, a public notice requirement for LLCs that catches a lot of new business owners off guard. Getting these steps right at the start avoids expensive fixes down the road.

Here’s how this typically works in New York:

1. Choose your business structure — LLC, corporation, or partnership — based on liability protection, taxes, and how you plan to raise money.
2. File formation documents with the New York Department of State (Articles of Organization for an LLC, a Certificate of Incorporation for a corporation).
3. If you're forming an LLC, publish a notice of formation in two local newspapers once a week for six weeks, then file a Certificate of Publication within 120 days.
4. Put your operating agreement (LLC) or bylaws (corporation) in place and get your EIN from the IRS.
5. Open a business bank account using your formation documents and EIN.

• Before you sign your first client contract, lease, or vendor agreement
• Before you open a business bank account (most banks require your formation documents)
• When you're bringing on a co-founder, partner, or early investor
• If you're currently a sole proprietor and want to limit your personal liability
• Before you hire your first employee
• If you're not sure whether an LLC or a corporation is the right fit for your business and taxes