We’re Big Apple bound this week in our 50 states of incorporation series as we learn what it takes to form an LLC and incorporate in New York!
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!
One of the first decisions every business owner needs to make is what entity to file their business as, and that choice is typically between LLCs vs. Corporations. Really the decision comes down to what fits the needs of the business owner and the business, but there is still discussion on which entity is best. Here at MyCorp, we gathered together a panel of professionals to get their expert advice on LLCs vs. Corporations and which is the best to form for your business. Which side are you on?
1. “Generally speaking, corporate status is preferable. Banks typically don’t view LLCs as favorably during the loan application process and corporations don’t pay taxes on fringe benefits. These include group-term life insurance, medical reimbursement plans, medical insurance premiums, and more.”
- John Boyd, Principal, The Boyd Company, Inc.
Jay Coen Gilbert, B Lab Cofounder
When we first started taking a closer look at benefit corporations, we were really building off of the momentum that began with B Lab, the nonprofit that pushes for Benefit Corporation legislation and certifies B Corps. Little did we know, we’d be interviewing Jay Coen Gilbert, one of the three cofounders of B Lab, on our blog! We were so excited, we added a few extra questions in today’s interview where Jay tells us about the benefits forming a B Corp brings to society and the environment, and that for all companies, it’s most important to take the first step and see where you stand.
1. What’s the source of your passion and inspiration that drove you into your leading role in the Benefit Corporation movement?
B Lab’s three cofounders, Bart Houlahan, Andrew Kassoy and I (Jay Coen Gilbert), all share a passion for using market forces to address society’s greatest challenges. We’ve worked in business for most of our careers and hope to harness the amazing talent, passion and resources we’ve seen there to make a better world. Ultimately, we founded B Lab to serve those entrepreneurs who are using business as a force for good.
Timothy S. McCausland, Senior Vice President & Chief Strategy Officer at Orange County Trust Company
In 2010, with over 25 years working in transactional matters involving real estate, trusts and estates, commercial matters and finance, attorney Timothy S. McCausland began investigating the growing trend of states adopting benefit corporation legislation. The B-Corps won McCausland over, especially since at the time he resided within a more rural part of New York and felt that the B-Corp would be a great fit for his region. By working alongside a colleague and friend, Gary Schuster, and familiarizing his state legislators with benefit corporations, the pair was able to push for the legislation and ultimately, for benefit corporation legislation to be passed in New York.
Today, we’re interviewing Timothy, currently serving as the Senior Vice President for Orange County Trust Company, on where he thinks B-Corps are heading, the benefits of going B-Corp for your business, and why once the switch is on for setting up a B-Corp, it can’t be switched so easily back off.
Welcome to our weekly Business Basics post! In case you missed last week’s entry to the series, we are dedicating every Tuesday to helping explain the facets and aspects of starting and running a business that typically get overlooked.
Initial and annual reports (also known in some states as Statements of Information), while not particularly glamorous, keep your business in good standing. Plus if you misfile them, or file them late, your corporation or LLC could be slammed with fees, or even dissolution. Two things that you clearly want to avoid. But what are these reports, and what are they supposed to say?
Last month, we conducted our first ever MyCorp 2012 Survey for Small Business with five quick questions on the state of small businesses in 2012 and beyond with questions that focused on consumer spending, business spending, predicted growth of the business in 2013, the social media outlet you’re looking to establish for your brand, and quite literally the state of your small business – where you’re putting your business out on the map and which states are the most popular to form a small business in!
We tallied up the votes on Constant Contact, conducted the random drawing for our lucky $50 Starbucks gift card winner (congrats to Elizabeth Sneed!), and the results are in from our voters! Continue reading
It’s that time of the year: long weekend time! A time to wrap up all projects at work for the weekend, keep your Outlook unopened, and hopefully your iPhone or Blackberry will also be closed for business. Who wants to be plugged in when there are barbecue grills to fire up, pools to splash in, and road trips (insert mandatory exclamation point here:!) to hit the road with?
Surprisingly for small business owners, that answer is less than half. According to BusinessNewsDaily,about 46% of small business owners will go on a summer vacation this year. This is compared to the 67% that took vacations in 2006. Granted, it was a different time in ’06, both for the economy and gas prices. But we here at MyCorp are betting to guess that those who don’t take the time off for summer vacations might not be taking this Memorial Day weekend off either. Finding the line between career and personal life for many individuals is beginning to blur, as the digital age mandates that we stay completely plugged in, logged in, and sending auto-replies at all times. Continue reading