I started my store as a sole proprietor, then filed a DBA so I could operate under the name "ML Necessities." A few months later I formed ML Necessities LLC in New York. Filing the LLC was the easy part. Then came the newspaper publication, a new sales tax certificate, a business bank account, and updating the legal entity on every marketplace and card. This is the checklist I wish I'd had.
This is what I did and learned in New York. Rules differ by state and situation. For decisions about your business structure or taxes, talk to an attorney or accountant.
Step 1: Form the LLC
In New York, you file Articles of Organization with the Department of State. You can do it yourself online or through a formation service that bundles extras like publication and a registered agent. Either way, a few fields deserve more attention than they get:
- The county. The Articles list the county where the LLC's office is located, and that county determines where you publish. My Articles came back listing the county of my formation service's registered agent instead of the county where my business actually is. Fixing that requires another filing with the Department of State, so check this before you submit.
- Registered agent. New York doesn't require a separate registered agent. The Secretary of State accepts legal papers and forwards them to the address you list. Formation services often include an agent free for the first year, then charge annually. Note the renewal date so it isn't a surprise.
- The operating agreement. New York requires LLCs to adopt one, even single-member LLCs. You don't file it anywhere. Sign it and keep it with your records.
Once it's filed, order a certified copy of your Articles. Banks often ask for it.
Step 2: Handle the publication requirement
New York is one of very few states that requires a new LLC to publish notice of its formation in newspapers. Within 120 days of formation, you publish in two newspapers (one daily, one weekly) chosen by the county clerk, once a week for six weeks. The newspapers send affidavits, and you file a Certificate of Publication with the Department of State.
Two things to know. Publication costs vary a lot by county, and New York City counties are among the most expensive. And the whole process takes a few months, but it doesn't stop you from operating while it's in progress. Just don't let the 120-day deadline pass.
Step 3: Tax IDs
An LLC usually gets an EIN from the IRS, which is free on the IRS website. Whether you need a new EIN or can keep an existing one depends on your situation, so check the IRS's guidance on LLCs or ask your accountant.
Right after my LLC was formed, I got a text pointing me to a non-IRS website to set up a "Federal EIN." Public business filings attract these. EINs are free and issued only through irs.gov. Ignore anyone asking you to pay for one.
Step 4: Sales tax registration
In New York, a business selling taxable goods needs a Certificate of Authority, and a new LLC is a new entity. I applied for the LLC's certificate through NY Business Express as a change in organization, and it was approved the same day, with the printed certificate following by mail.
Then close out the old sole proprietor account properly. I'm closing mine by filing a final return and paying it in full, rather than leaving the account open. Also update the sales tax ID anywhere you use it for tax-exempt inventory purchases, like liquidation sites or wholesale suppliers. They'll need the LLC's certificate, not the old one. More on all of this in the sales tax guide for online sellers.
Step 5: Banking and cards
- Open a business checking account in the LLC's name. I applied with my certified Articles of Organization and was approved and funded the same day.
- Update business credit cards. My card issuer changed the name on my business card to the LLC through a support chat and mailed a new card.
- Keep personal and business money separate. Mixing them weakens the liability protection the LLC is supposed to give you, and it makes bookkeeping painful.
Step 6: Update every marketplace
This took the longest, because every platform handles it differently.
| Platform | What it took for me |
|---|---|
| Amazon | The legal entity update in Seller Central was blocked by "another verification in progress." The only fix was waiting for the pending verification to clear before trying again. |
| Shopify | The business entity is a field in Settings, under General. The Shopify Payments entity was a separate change that I had to do through support chat. |
| eBay | I had to switch the account from personal to business, which also fixed a mismatch between the account name and the business bank account for payouts. |
| Walmart | Business details came over through Express Setup. Make sure the legal name and tax ID match the LLC. |
| TikTok Shop | Update the business information in seller settings to match the LLC. |
Expect some platforms to re-verify your identity and documents. Have your Articles, EIN letter, and a business bank statement ready as PDFs.
Step 7: Paperwork for the transition
- Document the inventory and equipment moving from you personally to the LLC, with a simple list and values.
- Set a clean cutover date for your books, so sales before it are the sole proprietorship and sales after are the LLC.
- Keep everything in one folder: Articles, operating agreement, EIN confirmation, sales tax certificate, publication affidavits, and bank documents.
Was it worth it?
For me, yes. Having the business separate from my personal finances makes the money easier to track, banks and marketplaces treat the business more seriously, and the structure is ready if the store grows. The cost and paperwork are real, especially New York's publication requirement, so it's worth planning for rather than doing on a whim.
Questions people ask
Do I need an LLC to sell on Amazon or eBay?
No. You can sell as an individual or sole proprietor. An LLC separates business liabilities from your personal assets and can make banking, accounting, and marketplace verification cleaner, which is why many sellers form one once the business is real.
What is New York's LLC publication requirement?
Within 120 days of forming, a New York LLC must publish a notice of its formation in two newspapers designated by the county clerk where the LLC's office is located, once a week for six weeks, then file a Certificate of Publication with the Department of State. Missing it can suspend the LLC's authority to do business.
Do I need a new sales tax certificate after forming an LLC?
In New York, yes. The LLC is a new business entity, so it needs its own Certificate of Authority. The old sole proprietor account should file its final return and close.
Will forming an LLC lower my taxes?
Not by itself. A single-member LLC is taxed like a sole proprietorship by default. The main benefits are liability protection and separation. Talk to an accountant about tax elections like S corporation status.