Do I need an LLC?New York LLC cost: year one and every year after
Short answer. For a solo operator in Brooklyn, the state fees confirmed on official sites add up to $275 in year one ($200 Articles, $50 Certificate of Publication, $25 annual filing fee), plus newspaper publication, which is estimated, not verified at roughly $400 to $1,600 depending on the source (sources disagree; get a written quote from the two newspapers the County Clerk assigns). After that the confirmed state costs are about $29.50 a year. Forming in Wyoming instead costs at least as much, because you still register and publish in New York. Staying a sole proprietor has no state formation fees.
Informational only. Not legal or tax advice. Confirmed means read on an official government page on 2026-10-31. Estimates are shown apart and are never added to confirmed totals.
New York LLC vs Wyoming LLC vs sole proprietor
| Path | Year one | Each year after |
|---|---|---|
| A. LLC in New York | $275 confirmed + publication estimate, not verified: $400 to $1,600 (Brooklyn; sources disagree) | $29.50 confirmed ($25 + $9 every 2 years averaged) |
| B. LLC in Wyoming + register in New York | $375 confirmed ($100 Wyoming + $250 NY Application for Authority + $25) + publication estimate (same as A), + foreign Certificate of Publication assumed $50, not verified + Wyoming registered agent: no figure found, not included | $89.50 confirmed ($60 Wyoming minimum + $25 + $9 every 2 years averaged) + Wyoming registered agent, no figure found |
| C. Sole proprietor (baseline) | $0: free EIN from the IRS, separate bank account | $0 in state formation fees |
Not in any total above: NYC Unincorporated Business Tax (applies to sole proprietors and LLCs alike, see below), your federal and state income tax, bank fees, an assumed-name (DBA) filing if you use a business name, and any attorney or CPA time.
New York LLC fees, line by line
| Fee | Amount | Status | Source |
|---|---|---|---|
| NY Articles of Organization | $200 | verified | NY Dept. of State |
| Certificate of Publication | $50 | verified | NY Dept. of State |
| Newspaper publication, Kings County | $400 to $1,600 depending on the source | estimate, not verified | Secondary sources only, and they disagree; no official price or newspaper rate card found. Get a written quote from the two assigned newspapers. See the publication page. |
| Biennial statement (every 2 years) | $9 | verified | NY Dept. of State |
| Annual LLC filing fee, disregarded LLC (IT-204-LL) | $25 (due March 15) | verified | NY Tax Dept. The same page's table for other LLCs runs from $25 to $4,500 by gross income. |
| NY Application for Authority (foreign LLC) | $250 | verified | NY Dept. of State |
| Wyoming Articles of Organization | $100 | verified | Wyoming SOS fee schedule, effective July 1, 2026 |
| Wyoming annual report license tax | $60 minimum | verified | Same schedule: $60 or two-tenths of one mill on Wyoming assets, whichever is greater. |
| Wyoming registered agent | no figure | unresolved | Private companies set the price. Wyoming requires an agent (seen in a search excerpt of an SOS guide, not read in full). |
| EIN | $0 | verified | IRS: "You never have to pay a fee for an EIN." |
NYC Unincorporated Business Tax (Brooklyn)
NYC Department of Finance says the UBT applies to individuals, partnerships and LLCs carrying on a trade, business, profession or occupation in the city, at 4% of taxable income allocated to NYC. A return is required when total gross business income is over $95,000 (before cost-of-goods or services deductions; read in the 2024 instructions). NYC residents may claim a credit against NYC personal income tax for part of the UBT paid as a sole proprietor. A single-member LLC owned by an individual files Form NYC-202. S corporations are subject to a different NYC tax. So forming a single-member LLC does not by itself add or remove UBT versus staying a sole proprietor. Unresolved: the credit amount, whether a particular app business counts, and the real UBT after credits. No figure is computed here. Ask a New York CPA. Sources: NYC Finance UBT page, 2024 NYC-202S instructions.
New York taxes: what an LLC does and does not change
The IRS treats a single-member LLC as "disregarded as separate from its owner": you report profit on Schedule C and pay self-employment tax as a sole proprietor would. So forming in Wyoming does not change federal income tax on your profit, and it does not by itself change New York income tax on it. Federal estimated tax for 2026 is due April 15, June 15, September 15 and January 15, 2027 (Form 1040-ES; NY lists the same dates). When a date falls on a weekend or federal holiday it moves to the next business day; the calculator computes this.
What is different about running a one-person app business in New York
Three New York rules that apply whether you stay a sole proprietor, form a New York LLC, or form in Wyoming and register here. None is in the fee table, and this site computes none of them.
- Sales tax can apply to your own software. The Tax Department's software bulletin says prewritten software is taxable "by electronic transmission; or by remote access," and that "the sale to a purchaser in New York of a license to remotely access software is subject to state and local sales tax." Anyone who sells taxable property or services, "even if you make sales from your home," must register as a sales tax vendor through New York Business Express before beginning business. Whether your product counts is a question for the Tax Department or a New York CPA. Sources: Computer Software bulletin TB-ST-128 (page updated October 16, 2026); Register as a sales tax vendor (updated July 25, 2025).
- A commuter tax on self-employed profit, with a cliff. The Metropolitan Commuter Transportation Mobility Tax (MCTMT) applies to self-employed individuals doing business in New York City (Zone 1, which includes Brooklyn) and seven nearby counties. For 2026 the threshold is $150,000 of net earnings from self-employment allocated to the zone; it was $50,000 for 2025 and earlier. The 2026 instructions give the Zone 1 rate as 0.60% of those earnings "if such earnings exceed $150,000," and say no tax credit can offset it. The wording suggests the rate applies to the whole amount once you are over the line, not just the excess; confirm that reading before you plan around it. It is reported on your personal return. Sources: NY Tax Department, NYC, Yonkers and MCTMT page (updated June 30, 2026); Form IT-2105 instructions, 2026.
- Hiring your first contractor triggers a written-contract rule. New York's Freelance Isn't Free Act (General Business Law article 44-A) covers a freelance worker paid $800 or more, counting all contracts between the same two parties in the preceding 120 days. A "freelance worker" includes any "organization composed of no more than one natural person," incorporated or not, so a contractor's one-person LLC counts. You must give the worker a written contract with names and addresses, itemized services and their value, and the payment due date, and keep it at least six years. If the contract sets no pay date, payment is due within 30 days after the services are completed. Sources: GBL section 1410; section 1412; section 1411; NY Department of Labor.
Not verified here: whether the Freelance Isn't Free Act applies when the hiring party is a Wyoming LLC, and how New York sales tax sourcing works for customers in other states. Facts above were read on official New York pages on 2026-10-31. Informational only, not legal or tax advice.
What this New York page doesn't tell you
Whether you need an LLC yet, which line of the table applies to you, your own dates (publication day 120, biennial month, estimated taxes), or whether to ask a CPA about an S-corp. The calculator takes your answers and returns a verdict, your numbers and a dated checklist you can download as a PDF and calendar file.
New York LLC questions
How much does it cost to form an LLC in New York?
Confirmed state fees in year one for a solo operator are $200 for the Articles of Organization, $50 for the Certificate of Publication and $25 for the Tax Department annual filing fee, $275 in total. Newspaper publication is extra; in Brooklyn it is estimated, not verified, at roughly $400 to $1,600 depending on the source. Sources disagree; get a written quote from the two newspapers the County Clerk assigns.
What does a New York LLC cost every year?
The confirmed recurring state costs are the $25 annual filing fee (IT-204-LL) and a $9 biennial statement every two years, about $29.50 a year averaged. NYC Unincorporated Business Tax may apply to sole proprietors and LLCs alike and is not computed here.
Is a Wyoming LLC cheaper for a New York resident?
No. A New York resident forming in Wyoming still pays Wyoming's fees and then New York's Application for Authority ($250), publication and annual fees, so the total is not lower.
Do I pay less income tax with an LLC?
Not by default. A single-member LLC is treated by the IRS as disregarded, so you report profit on Schedule C and pay self-employment tax as a sole proprietor would.