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Ease of Doing Business in

United States

United States Download Profile (1997.9KB, pdf)
Region OECD high income
Income Category High income
Population 321,418,820
GNI Per Capita (US$) 54,960
City covered New York City, Los Angeles

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 8 7 down
1
82.45 82.46 down
0.01
Starting a Business 51 45 down
6
91.23 91.22 up
0.01
Dealing with Construction Permits 39 37 down
2
75.74 75.73 up
0.01
Getting Electricity 36 32 down
4
83.39 83.39
-
Registering Property 36 37 up
1
76.80 76.85 down
0.05
Getting Credit 2 2
-
95.00 95.00
-
Protecting Minority Investors 41 39 down
2
64.67 64.67
-
Paying Taxes 36 34 down
2
83.85 83.89 down
0.04
Trading across Borders 35 35
-
92.01 92.01
-
Enforcing Contracts 20 20
-
72.61 72.61
-
Resolving Insolvency 5 4 down
1
89.19 89.20 down
0.01

Viewing the data for

DB 2017 DTF (% points): 91.60

DB 2016 DTF (% points): 91.60

Change in DTF (% points): 0.00

Standardized Company
Legal form: NY Limited Liability Company
Paid-in minimum capital requirement: USD 0
City:
Indicator New York City OECD high income
Procedure – Men (number) info_outline 6.0 4.8
Time – Men (days) info_outline 4.0 8.3
Cost – Men (% of income per capita) info_outline 1.3 3.1
Procedure – Women (number) info_outline 6.0 4.8
Time – Women (days) info_outline 4.0 8.3
Cost – Women (% of income per capita) info_outline 1.3 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Reserve the company's business name (optional), file the company's articles of organization and adopt the company's operating agreement

    Agency: New York State Department of State, Division of Corporations

    The company founders may reserve the name of the company with the New York State Department of State Division of Corporations prior to filing the company's articles of organization. To reserve a name, the founders should file an application for Reservation of Name and pay a fee of USD 20. The name reservation can be done online at the following: http://www.dos.ny.gov/corps/llccorp.html . The application holds the name for 60 days and may be extended twice for additional periods of 60 days. The fee to extend the reservation of name is also USD 20. The company name must contain the words "Limited Liability Company," "L.L.C.," or "LLC."

    The founders must file the company's articles of organization with the New York Department of State Division of Corporations. Forms can be purchased at a legal supply store or downloaded from the department’s website. The application processing time is about seven business days. However, optional expedited processing is available according to the following fee schedule:
    - 2-hour turnaround: USD 150 (additional fee)
    - Same-day service: USD 75 (additional fee)
    - 24-hour turnaround: USD 25 (additional fee)

    New York State requires an LLC to have a written operating agreement but such agreement does not have to be filed with the state. The business members may enter into an operating agreement before, at the time of, or within 90 days after the filing of the articles of organization. Regardless of when such an agreement was entered into, it may be effective upon the formation of the LLC or at a later date specified in the operating agreement (provided, however, that under no circumstances shall an operating agreement become effective prior to the formation of such company).
    Less than one day (online procedure) USD 275 (USD 200 filing fee, USD 75 expedited service fee)
    2

    Apply for federal identification number (EIN) for tax and employer purposes

    Agency: US Internal Revenue Service

    The company needs to apply for a federal Employer Identification Number ("EIN"), which is used for tax and employer purposes. Founders must file IRS Form SS-4 (available from the US Internal Revenue Service).

    It is possible to apply online at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employer-ID-Numbers-EINs (processing time: immediate), by telephone (processing time: immediate), by fax (processing time: 4 business days), or by mail (processing time: 4 weeks). If applicants apply online, they do not need fill out IRS Form SS-4.
    Less than one day (online procedure) no charge
    3

    Register to collect state sales tax

    Agency: New York State Department of Taxation and Finance

    Businesses that "sell taxable tangible personal property, perform taxable services, receive amusement charges, or operate a hotel or motel, and restaurants, taverns, or other establishments that sell food and drink" must register as a sales tax vendor and obtain a Certificate of Authority, as well as those businesses that buy and sell for resale (for example, a wholesale distributor). See the Department of Taxation and Finance's Official Publication 750, "A Guide to Sales Tax in New York State."

    To register, the founders must file Form DTF-17 or register online at the website of the New York State Department of Taxation and Finance (http://www.tax.ny.gov/). After the company has registered, it generally must file quarterly sales and use tax returns regardless of whether it has started or done any business.
    Less than one day (online procedure) no charge
    4

    Register as an employer with the Unemployment Insurance Division at the State Labor Department

    Agency: New York State Department of Labor

    Founders must register as an employer by completing Form NYS-100 to determine whether or not the company is liable under the New York State Unemployment Insurance Law. If the company is determined liable, the Department of Labor will send the company quarterly combined withholding, wage reporting and unemployment insurance returns for reporting wages paid to the company's employees. General business employers may register online at the New York State Department of Labor website (https://applications.labor.ny.gov/eRegWeb/registerEmployer/uiEPMWelcomeMain.faces) or by completing Form NYS-100 and submitting it by mail or fax.
    Less than one day (online procedure) no charge
    5

    Arrange for workers' compensation and disability insurance

    Agency: New York State Workers' Compensation Board

    As New York employers, the LLC founders must obtain and maintain workers’ compensation insurance and disability insurance for its employees by purchasing a workers’ compensation insurance policy and a disability benefits insurance policy from an authorized private insurance carrier or through the NYS Insurance Fund (or by self-insurance for workers' compensation).

    The company’s federal Employer Identification Number (""EIN"") is the company’s primary identification with respect to communications with the Workers’ Compensation Board or by becoming a member of a group self-insurer authorized by the board. The company must give its EIN to its insurance carrier when obtaining or maintaining its workers’ compensation or disability coverage. Workers’ compensation insurance floor is calculated using each employee’s risk classification, salary, and total payroll.
    1 day no charge
    6

    Arrange for publication and submit certificate and affidavits of publication

    Agency: New York State Department of State, Division of Corporations

    Section 206 of the New York State Limited Liability Company Law requires that within 120 days (after the effectiveness of the initial articles of organization), a limited liability company (LLC) must publish in two newspapers a copy of the Articles of Organization or a notice related to the formation of the LLC once a week for six successive weeks. The newspapers must be designated by the county clerk of the county in which the office of the LLC is located, as stated in the Articles of Organization.

    The State of New York website has a directory of all New York county websites (http://www.nysegov.com/citguide.cfm?context=citguide&content=munibycounty1), which entrepreneurs can use as a reference to find their relevant county for publishing. The cost of notice of publication varies by county.

    After publication, the printer or publisher of each newspaper will provide the entrepreneur with a Certificate of Publication, with the affidavits of publication of the newspapers attached. It must be submitted to the New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. The fee for filing the Certificate of Publication is USD 50.
    1 day USD 475