How to Form a Real Estate LLC in New York: Step-by-Step (2026)

You have decided to form an LLC for your New York real estate work. Your brokerage has confirmed they pay LLCs, you know your county's publication cost, and your single-member structure already meets the § 442 conditions. This post is the actual filing process — nine steps, what each one costs, how long each one takes, and the order to do them in.

If you have not yet read the prior post on whether you actually need an LLC as a NY real estate agent, start there. This one assumes the decision is made.

Step 1: Pick a name that clears the state's distinguishability test.

Your LLC name must include 'Limited Liability Company,' 'LLC,' or 'L.L.C.' at the end. The brand portion in front of that suffix has to be 'distinguishable on the record' from every other entity name already registered with the New York Department of State. You can verify availability for free on the NY DOS Corporation & Business Entity Database (the 'Business Entity Search' on the DOS website).

Real-estate-specific naming notes.

Do not include the word 'Realtor' in your LLC name unless you are an active member of the National Association of Realtors — it is a trademark and they actively enforce it. Do not include 'Real Estate Broker' in the name unless you actually hold a broker's license; a salesperson cannot represent themselves as a broker even inside an LLC name. You do not need to reserve the name in advance — the protection only kicks in when you actually file the Articles of Organization.

Step 2: File the Articles of Organization (Form DOS-1336).

This is the document that legally creates the LLC. The state filing fee is $200, payable to the New York Department of State. You can file online through NY Business Express (instant approval during business hours, paid with Visa, Mastercard, or American Express), or mail the paper form to the Division of Corporations at One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231 (2 to 3 weeks plus mail time). Online is the right choice unless you have a reason it isn't.

What goes in the form.

• The exact LLC name, with the suffix.
• The county where the LLC's principal office is located (this is the county that controls the publication requirement, so pick deliberately).
• An address for service of process — by default, the NY Secretary of State is designated to receive legal mail on your behalf and forward it to an address you provide. You can also name an additional registered agent if you want a buffer between your home address and the public record.
• Whether the LLC is member-managed (you make decisions) or manager-managed (you appoint someone to). For a solo agent, member-managed is the default and the simpler choice.

Step 3: Publish notice in two newspapers (the NY-specific step).

New York Limited Liability Company Law § 206 requires you to publish notice of your LLC's formation in two newspapers in the county where the LLC's office is located, for six consecutive weeks. The two newspapers — one daily, one weekly — are designated by the County Clerk in your county. You do not get to pick.

The publication must happen within 120 days of filing the Articles of Organization. Cost varies dramatically by county: well under $200 in many upstate counties, often $1,000 to $2,000 in Manhattan. The next post in this series breaks down county-by-county costs and how to lower them where you can.

After the six weeks of publication, both newspapers send you an Affidavit of Publication. You then file a Certificate of Publication with the NY Department of State, attaching the affidavits, with a $50 filing fee. Skipping this step is not optional — failure to publish within 120 days suspends the LLC's authority to carry on business in New York until you cure the lapse.

Step 4: Adopt an operating agreement within 90 days.

Under New York Limited Liability Company Law § 417, members of a New York LLC are required to adopt a written Operating Agreement, entered into before, at the time of, or within 90 days after filing the Articles of Organization. The operating agreement is an internal document — it is not filed with the state — but it is the document that establishes the rights, duties, and obligations of the members.

For a single-member real estate LLC, what to include.

• Sole member identification (your name, address, ownership percentage at 100%).
• Management structure (member-managed by you).
• Initial capital contribution (typically the $200 filing fee plus any startup costs).
• How profits and losses flow to you (for a single-member LLC, all of it).
• How the LLC can be dissolved (typically by your decision or a triggering event).
• A statement that the LLC is in compliance with the § 442 conditions: that you are a duly licensed New York real estate salesperson associated with your brokerage.

Many brokerages will ask to see the operating agreement when they set up commission payments to your LLC. Having it ready avoids a back-and-forth in week one.

Step 5: Get your EIN from the IRS.

An Employer Identification Number (EIN) is your LLC's federal tax ID. It is free and the application takes 10 to 15 minutes online at irs.gov. You will need your filed Articles of Organization, the LLC's address, and your Social Security Number (you are the 'responsible party' on the application). The system issues the EIN instantly at the end of the application.

Step 6: Open a business bank account in the LLC's name.

Bring four things: your filed Articles of Organization (with the NY DOS confirmation), your EIN letter from the IRS, your operating agreement, and a government-issued ID. Online banks (Mercury, Relay, Novel, Bluevine) typically approve in 10 to 30 minutes; traditional banks often require an in-person appointment but offer cash deposit and lending relationships if those matter to your business.

This is the milestone that makes the LLC's liability protection meaningfully defensible. A court that finds you commingled personal and business funds can decide the protection does not apply (this is called 'piercing the corporate veil'), so a separate account is not a nice-to-have, it is the structural prerequisite for the protection the LLC is supposed to provide.

Step 7: Wire your brokerage commissions to the LLC.

This is the step the prior post asked you to verify with your managing broker before filing anything. With the LLC formed, the EIN issued, and the bank account open, send your brokerage four pieces of information: the exact legal name of the LLC, the EIN, the bank's routing and account numbers for direct deposit, and a fresh W-9 in the LLC's name. Sign any addendum to your independent contractor agreement that the brokerage requires. From this point forward, commission checks are paid to the LLC, not your Social Security Number.

What to confirm with the brokerage in writing.

• They have the exact legal name on file (matching the Articles of Organization).
• Your W-9 is updated to the LLC's EIN.
• Your commission split structure is unchanged — the entity change does not modify your split unless you negotiated it to.
• Any compliance documents (1099 routing, errors and omissions insurance carrier name, transaction coordinator setup) are updated.

Step 8: Set a reminder for the biennial statement.

Every two years, the NY Department of State requires you to file a Biennial Statement — a short form confirming your LLC's address and registered agent — with a $9 fee. The deadline is the end of the calendar month in which your LLC was originally filed (so if you filed in May, your biennial is due by May 31, every two years). Easy to forget. The penalty for missing it is loss of good standing, which can create friction with banks and brokerages.

Step 9: Save the receipts.

Keep a single folder (digital or paper) with: filed Articles of Organization, your EIN confirmation letter (the IRS calls it CP 575), your operating agreement, both Affidavits of Publication and the filed Certificate of Publication, the bank account opening documents, and the signed brokerage addendum. This is what you'll need if you ever sell the business, raise money, fight a tax notice, or just want to prove the LLC is in good standing. It is also the bare minimum your CPA will ask for in year one.

The full timeline and cost.

Realistic timeline: the entity is formed in one evening, the bank account opens the same week, publication runs quietly in the background for six weeks, and your first commission to the LLC clears within the first month. All-in cost ranges from roughly $450 in low-cost counties to $2,250 or more in Manhattan, with the publication requirement driving almost all of the variance.