To form a corporation in New York, you must understand the basics of New York corporation law. The structure of your New York corporation will be instrumental in the success of your business. It will affect your tax treatment, filing requirements, funding potential and liability obligations.
The ownership plans for your business will help determine how to incorporate in New York. A traditional corporation is useful to raise money with investors, or to allow ownership by employees in the form of shares. However, New York corporate law requires complex, ongoing paperwork and will tax your business income on the corporate and shareholder levels.
New York LLC registration, on the other hand, is less complicated. Taxation occurs only on one level, which may be an important benefit to your company. The structure is more simple and can require only two people to incorporate.
The options available under New York corporate law are:
1. A domestic corporation, incorporated as either a C-corp or an S-corp.
2. A limited liability company (LLC).
3. A limited liability partnership (LLP).
Action Steps
The best contacts and resources to help you get it done
Choose what works when considering New York incorporation
The decision on whether to form a corporation or partnership depends on your long-term goals. Ownership is easier to divide in a corporation, while partnerships under New York partnership law are not well suited for growth or sale and do not offer stocks. Taxation is different for both types of entities. And, finally, New York corporation registration requires filing of paperwork and fees for each. Corporation law firms in New York can be an additional useful resource to help in your decision.
I recommend: FindLaw will guide you through picking the structure that works for you. If you need further advice about incorporation in New York, find corporation law firms in New York at
Martindale-Hubbell.
Make your New York corporation a reality
New York corporation and partnership law requires filing certain forms as well as submitting fees. The filing may include articles of incorporation or, for New York LLC registration, articles of organization. Fees will vary depending on the structure. Although New York business corporation law allows the forms to be downloaded electronically, you must file in person, by mail or by fax.
I recommend: Conduct a records search through the
New York Department of State's search engine to find a business name that has not been incorporated. Find the correct forms for a corporation at the Division of Corporations'
Business Corporation Filing page. Confirm the fee required by checking the
Division of Corporations' fee schedule. A complete step-by-step guide to forming a business in New York can be found at the
Department of State website.
Follow New York business corporation law closely
New York corporation law requires specific information to be included in filings. The New York Business Corporation Act also details requirements regarding shareholders, naming conventions and ongoing administrative requirements under New York corporate law.
I recommend: Review the laws related to New York incorporation, including New York partnership law, at
onecle. Visit the
Department of Taxation and Finance to learn about your tax obligations as a New York corporation. If in doubt, incorporate using a reputable online service such as
Active Filings LLC.
Tips & Tactics
Helpful advice for making the most of this Guide
- Don't forget to register for an employer identification number with the IRS if you plan on having employees.
- Once you have filed for incorporation, you will have ongoing filing requirements annually to keep your company in good standing.
The official source of New York Corporation and Partnership Law is
the New York Corporation and Partnership Law page at Business.com
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