How do you set upa company in New York.
Teamed forms your New York LLC or corporation, files with the Department of State, and manages payroll and compliance so you can hire fast.
At a glance
New York entity setup, the short version
You file Articles of Organization or Incorporation with the New York Department of State, pay a $200 filing fee, and register for state taxes. Once formed, most corporations and many LLCs owe a minimum franchise tax of $25 under Article 9-A, calculated against gross receipts rather than profit. Teamed can employ your New York team through an entity while you decide whether incorporating makes sense yet.
- Minimum franchise tax
- $25
- Franchise tax basis
- gross receipts
- Formation / registration fee
- $200
Formation
Filing your Articles of Organization or Incorporation
To create a domestic LLC in New York, you file Articles of Organization with the New York Department of State, and that filing carries a $200 fee. A corporation follows a parallel path through Articles of Incorporation, with its own filing requirements handled by the same office.
Either structure needs a registered agent with a New York address, ongoing state filings, and internal governance documents. None of that paperwork disappears once the entity exists, it becomes a recurring administrative habit you either build in-house or hand to someone who already runs it.
Taxes
New York's franchise tax and what it actually covers
New York taxes corporations and many LLCs under Article 9-A, and the fixed dollar minimum for that franchise tax is $25. The tax is measured against gross receipts, not net profit, so it applies even to entities that aren't yet turning a margin.
Because the basis is gross receipts, the calculation depends heavily on how your business actually earns revenue in the state. It's worth getting this modeled properly before you file, rather than assuming your obligation mirrors what you'd owe elsewhere.
Employer registration
Registering as an employer once the entity exists
Forming the entity is only the first filing. You still need to register for state withholding, unemployment insurance, and workers' compensation coverage before you can legally run payroll for anyone in New York.
Each of these registrations has its own timeline and its own agency, and they rarely move in parallel unless someone is actively managing the sequence. This is where a lot of new employers lose weeks they didn't plan to lose.
Timing
Where speed matters versus where it doesn't
If your first New York hire is time-sensitive, waiting on entity formation and employer registration can stall the offer. An employer of record lets you employ that person immediately under an existing structure, while your own entity moves through its filings in the background.
Once the entity, tax registrations, and payroll infrastructure are all live, there's no reason to keep routing new New York hires through anything else. The decision isn't permanent either way, it's a question of what stage you're actually at.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is genuinely the better answer for a lot of New York hiring, not a stopgap you're stuck tolerating. If you've got a small or still-shifting team, or you're testing whether New York is even the right market, it's the fair choice, not the lesser one. Talk to a member of the team about your specific plans, or run the numbers through the crossover calculator to see where the balance actually sits.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it.
For New York specifically, that means we handle the Articles of Organization or Incorporation filing, the $200 registration fee, the registered agent, and the franchise tax setup under Article 9-A, including the $25 minimum based on gross receipts. When you're ready to move from Teamed's employment structure to your own New York entity, we build it clean, transfer your team's employment records across, and step back once it's fully operating on its own.
They set up our EU entity and moved hires across without missing a payroll.
Questions
New York entity setup, answered plainly
How much does it cost to file an LLC in New York?
The New York Department of State charges a $200 fee to file Articles of Organization for a domestic LLC. That's the formation fee itself, separate from any ongoing franchise tax obligations that follow once the entity exists.
What is New York's minimum franchise tax?
New York sets a fixed dollar minimum franchise tax of $25 under Article 9-A. It's calculated against gross receipts, so it applies whether or not the entity is currently profitable.
Is the New York franchise tax based on profit?
No, the franchise tax basis is gross receipts, not net income. That's a meaningful distinction if your New York entity has revenue flowing through it but hasn't reached profitability yet.
Can I hire in New York before my entity is fully set up?
Yes, an employer of record can employ your New York team while your own entity works through formation and tax registration. That lets you make an offer now instead of waiting on the full filing sequence.
How do I know if I should form a New York entity or keep using an EOR?
It depends on your headcount, salary levels, and how long you plan to keep hiring in New York, not on a fixed threshold. Run the crossover calculator or talk to a member of the team to see where your specific numbers land.
Where these figures come from
Sources
These figures are drawn from the New York State Department of Taxation and Finance and the New York Department of State.
Looking for a job in Entity Setup yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.