AOL, HBO, J.P. Morgan Chase, NBC, Time Warner – to list the sheer number of major corporations that call NYC home to their headquarters would undoubtedly be an entire paragraph (or two) unto itself. Forbes summed it up nicely in a piece ranking the state on the 50 best states for business list, stating that if New York were a country, the state’s $1.2 trillion dollar economy would be the 14th largest in the world after Spain.
Whether you’re working in finance, banking, or fashion, seemingly every type of industry has a place in New York. There are plenty of VC investment opportunities to be found and lots of resources within the state as well. But New York also suffers from high costs in areas concerning taxes, living, and healthcare. Thumbtack.com ranked the state with a D+ in overall friendliness and an F for ease in starting a business last year – ouch.
However, the old adage does ring true that if you can make in New York, you can make it anywhere. If you think you and your business are ready to take on the concrete jungle and incorporate in New York, read on for more information on how to get started!
- Meet dos.ny.gov – your business’ new best friend. That’s the Department of State for New York’s official website and contains the most up to date information on all things concerning the company you incorporate or form an LLC for.
- New York has a flat corporate income tax of 7.100% which every business in the state must pay for, excluding sole-proprietorships, partnerships, and S-Corps. (C-Corps are on for double taxation.) Not sure how much that amounts to you paying? Check out this handy chart on Tax Rates for more information.
- Additionally, if your business has hired employees you will need to pay an employment tax along with temporary disability insurance. New York is one of the five states in the United States that requires disability insurance pay, alongside California, Hawaii, New Jersey, and Rhode Island.
- As mentioned on the DOS site, LLCs must file their Articles of Organization. along with their filing fee, pursuant to Section 203 of the Limited Liability Company Law, with the Department of State. The name of the company must have “LLC” or “Limited Liability Company” in it, a registered agent needs to be appointed, and an operating agreement needs to be prepared. There are also publication requirements to be aware of too - Section 206 states that a copy of the Articles of Organization or a notice related to the formation of the LLC is published in two newspapers for six consecutive weeks.
- Corporations are formed with a Certificate of Incorporation pursuant to Section 402 of the Business Corporation Law. The name of the company must have “Inc.” or “Incorporated” in it and the state also mentions that there are certain words that require approval for usage prior to filing a corporation. Reach out to the Division of Corporations before filing to be sure that your business may use the phrases it needs to.
Ready to start spreading the news that your business is incorporating in New York today? Give us a call at 1-(877) 692-6772, or leave a comment below and we’ll help you get started!