Start a Business in New York
Corporate Compliance by Local Corporate Guides®
Starting a business in New York can and should be easier than you think. You file simple forms with the NY Department of State, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in New York, along with great filing instructions on the quickest and cheapest ways to start your business in New York.
How to Start a Business in New York
You file certificate of incorporation for a New York corporation or articles of organization for a New York LLC with the NY Department of State.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of New York showing your approved New York business.
Opening a business banking account under your New York business name should be easy with these two items.
New York LLCs have to Publish in a New York newspaper – The New York LLC Publication process can be a confusing and daunting task. We have a template you can use and we also have listed different newspapers that we have found to be the cheapest to publish with. After you publish, the papers will mail you proof of publication. Send your proof of publication, publication affidavit, and $50 filing fee to the NY Department of State.
If you’re going to have employees or need to withhold sales tax, you will probably need to register with the NY departments of taxation and labor. We provide all these links in your online account.
If your business trade requires a license, you’ll have to apply for a license with the New York licensing board. (Most businesses don’t.) But if you do, these quick links and contact details are in your online account.
Some local cities or counties have a general license, but most don’t.
You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in New York yourself, you can just hire us as your New York registered agent, and you’ll instantly have the New York LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a New York corporation or form a New York LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional New York registered agent service.START YOUR NEW YORK BUSINESS TODAY
New York LLC vs Corporation
LLCs are popular for small to medium-sized companies because they have fewer annual requirements, more flexible management, and more tax options. Corporations are geared towards larger, fast-growing companies. Because corporations can offer different types of stock, investors are very attracted to them, which makes raising funds easier. The corporate management structure is also well defined.
But, what about New York? Any pros and cons for a New York LLC vs a New York corporation?
In terms of initial filing fees, starting a New York corporation is cheaper than a New York LLC. The Certificate of Incorporation will cost $125 compared to $200 for the Articles of Organization. New York LLCs are also required to publish a formation notice in two local newspapers. Depending on where you live, you could end up paying over $500.
Maintenance fees tend to be similar, but LLCs are better able to maintain owner privacy. Both entities are required to submit a biennial statement ($9) every two years. However, only corporations will need to list the Chief Executive Officer’s information and principal address. LLCs don’t need to list member/manager information or their business address.
During tax season, corporations will be hit slightly harder than LLCs. C corporations will be subject to the New York Corporation Tax based on the highest of three tax bases: income, capital, and fixed dollar minimum (FDM) tax. Meaning, traditional corporations need to calculate all three, then pay the highest amount. Personal income tax ranges between 4% and 8.82%. In addition, LLCs are required to pay an annual filing fee based on the previous year’s revenue ($25 minimum).
If you want a corporation, you file New York Certificate of Incorporation:
The New York certificate of incorporation costs $135 with the New York Department of State. You can file by mail, by fax, in person, or online.
We custom draft your New York certificate of incorporation when you hire Northwest to start your New York business. The basic requirements of New York corporations are:
- An incorporating New York ending such as Inc, corporation, or incorporated
- A general corporate purpose
- The county where the corporations office is located
- An amount of New York corporation shares you would like to authorize
- The par value of the shares
- The name, address, and signature of the New York incorporator
- The registered agent and office of the New York corporation
New York does not require original signatures on new NY corporation filings. The stamped form will be mailed to the address of the person who filed the documents.
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If you want a LLC, you file New York Articles of Organization:
- The business name must have a limited liability company ending or variation of it such as LLC, L.L.C.
- The New York business name must be different than already registered New York businesses.
- The duration of the New York LLC, (Usually perpetual.)
- New York limited liability companies do not need to state a LLC purpose.
- The New York registered agent and the physical address.
- The names and addresses of the initial member(s) are not required
- If the NY limited liability company is to be managed by one or more managers, you must specify this management structure. Managers names are not required.
- Someone must sign as the NY LLC organizer.
New York does not require original signatures on new NY LLC filings. You’ll get a certificate of formation mailed back to you after the state approves your filing. Remember that New York LLCs have the additional requirement of publication after you file the articles of organization.