How to Incorporate my Business in New York State?
You may ask yourself why incorporate my business? Well, all businesses can benefit from incorporating and here are some advantages of forming a corporation:
Add credibility: Adding a corporate designator after your business name is a legitimacy plus. It is best preferred to do business with a legally incorporated entity.
Protect your business name: Once you incorporate your business, other businesses cannot file with the same corporate name in the same state. Additionally, Corporations exist perpetually, which does not occur with sole proprietorships and partnerships.
Flexible taxation: Double taxation of its earnings and dividends can be avoided by a corporation by choosing Subchapter S tax status.
Deduct expenses: Corporations can deduct usual business expenses before allocation income to their owners.
A Corporation has some legal benefits to consider, such as:
Protection of personal assets. Safeguarding personal assets against the claims of creditors and lawsuits. Sole proprietors and general partners in a partnership are personally and jointly responsible for all the liabilities of a business such as loans, accounts payable, and legal judgments. In a corporation, however, stockholders, directors and officers typically are not liable for their company's debts and obligations. They are limited in liability to the amount they have invested in the corporation (eg: If $100 in stock was purchased, no more than $100 can be lost). Corporations may also hold personal assets like houses, cars or boats. If one is personally involved in a lawsuit or bankruptcy, these assets may be protected. A creditor of the owner of a corporation cannot seize the assets of the company; however, they can seize their ownership shares in the corporation, as that is considered a personal asset.
Transferable ownership. Ownership in a corporation is easily transferable to others, either in whole or in part. Some states' laws are particularly attractive to this end.
Retirement funds. Retirement funds and qualified retirement plans may be set up more easily with a corporation. Corporations can also fully deduct the cost of paying its owner's health insurance.
Taxation. In the United States, corporations are taxed at a lower rate than individuals. Also, they can own shares in other corporations and receive corporate dividends 80% tax-free. There are no limits on the amount of losses a corporation may carry forward to subsequent tax years. A sole proprietorship, on the other hand, cannot claim a capital loss greater than $3,000 unless the owner has offsetting capital gains.
Raising funds through sale of stock. Capital from investors can be raised for corporations easily through the sale of stock.
Durability. A corporation is capable of continuing indefinitely. Its existence is not affected by the death of shareholders, directors, or officers of the corporation.
Credit rating. Regardless of an owner's personal credit scores, corporations acquire their own credit rating, and build a separate credit history by applying for and using corporate credit.
Why Incorporate in New York?
It can be a strategic move for entrepreneurs and startups to incorpo-rate a business in New York. NY has great thriving economy and a business on the go environment becoming a hub for innovation and growth. Furthermore New York State has an extensive network of resources, elite universities and leading research institutions in prime industries.
The process to incorporate in New York is top-notch and efficient, with little bureaucratic red tape. In New York´s incorporating law you can choose from a range of options such as C-Corps, S-Corps and non-profits, ensuring that businesses can select the structure that best fits their corporate needs. Other huge advantages are the competitively low corporate tax rates and the many incentives offered for startups and small businesses.
From Wall Street to Silicon Alley, New York is home to a wide range of industries, including finance, technology and more. When you incorporate in New York, your company can take advantage of connecting with partners, investors and potential customers. It has a 24/7 lifestyle that offers a unique quality of life attracting top talent from all over the world.
Whether you're a startup looking to conquer or an established business seeking to expand, incorporating in New York can change your life. New York has a unique blend of opportunity, entrepreneurship, and innovation, which makes it the perfect place to turn your business vision into a reality. Incorporate in New York, and you'll be joining an elite crowd of entrepreneurs and innovators. You'll be able to take advantage of the state's business-friendly laws, which offer flexibility and protection for entrepreneurs.
STARTING YOUR NEW YORK CORPORATION
Do you want to incorporate a business in NY? File your NY Corporation with OLEN LLC. The incorporation of your business will be effective with our start-up experience. Incorporating a business in the state of New York involves several key steps and considerations. We’ll let you in on the name requirements, processing time and the forms needed to file. With us you’ll be ready to start your company complying with all the mandatory requirements for your incorporation. The certificate of incorporation must have a corporation name that has a corporate designator such as INC., CORP., Ltd., Incorporated, Corporation or Limited. The corporate name must never include restricted words according to Section 301 of the Business Corporation Law. You can also reserve the corporate name for an additional fee. Other items that are mandatory on the Certificate of Incorporation are the names and addresses of the incorporators, unlike the address of the registered agent which is optional. Your incorporating company must have a corporate purpose which can be general such as any lawful purpose or customized to fit your company’s mission statement. The county location and the stock structure are also mandatory.
The final step with OLEN is to place your order online and our business specialists will quickly and easily assist you. You can request your incorporation online at www.oleninc.com, by phone at 855-653-6462 and by email at info@oleninc.com. After you submit your order, we will take care of the filing process and reach out in case any additional information is needed. We process the Certificate of Incorporation on your behalf with the Department of State.
Once filed you will receive the formation documents by email or mail. The next steps to consider after incorporating is applying for an EIN (Employer Identification Number) and ordering a corporate kit, which includes a corporate binder with stock certificates, Minutes and by-laws, embossing seal and useful IRS forms. OLEN will assist you with both.
Is my Corporate Name Available?
We will check the name in the state that you want to form the company. Once the company has been filed and accepted by the state you can then use the name. We cannot guarantee whether or not your corporate name infringes on the rights of someone else.
What is a Registered Agent?
It is a requirement to have a Registered Agent. Usually someone from the company will act as the Registered Agent provided that they have a street address in the state of incorporation. However if you do not have a street address in the state of Incorporation we can appoint a Registered Agent.
What is a Shareholder?
The shareholders are the owners of the corporation. The owners can be individuals or other entities.
What is a Director?
The Directors of the Corporation are appointed by the shareholder to represent the shareholders’ interests and to approve major corporate decisions.
What are the Officers?
The Officers of the Corporation are the President or CEO, Vice President, Secretary and Treasurer. The Officers are appointed by the Directors. The job of the Officers is to run the company and manage the day to day operations. In most states one person can hold all of the Officer Positions.
Can One Person be the Shareholder (Owner), Director and Officer?
Yes, in most states one person can hold all of the above positions and it is not uncommon with small closely held corporations.
What is a Member?
The members are the owners of the LLC. The owners can be individuals or other entities (such as Corporation, LLC or other entities).
What is a Federal Employer Identification Number?
The Federal Employer Identification Number is also known as the Fed ID, Tax ID, Federal ID Number and or Employer ID. The Federal ID Number is a 9 Digit number similar to a Social Security Number. The Fed Id is issued for businesses so that they can file Tax Returns and open Business Bank Account.
Does the corporation have to authorize (have) and issue stock (shares)?
Yes, the corporation must authorize shares in the Articles of Incorporation and issue the stock (shares) of the corporation to the owners.
The difference between s-corp and c-corp
When deciding which business structure to adopt, entrepreneurs are often torn between two popular options: S Corporation (S Corp) and C Corporation (C Corp). While both offer unique benefits, there are significant differences that can have a significant impact on the financial health, taxes, and overall success of your business.
Taxes: One of the main differences between S-corporations and C-corporations is their tax structure. C-corporations are subject to double taxation: the corporation pays taxes on its profits and its shareholders pay taxes on the dividends they receive. This can increase your overall tax burden. In contrast, S-Corps are pass-through entities, meaning business income is taxed only at the individual level, avoiding double taxation.
Ownership structure: Another important difference lies in the ownership structure of the individual companies. A C-Corporation can have an unlimited number of shareholders, and these shareholders can be individuals, corporations, or even foreign companies. An S Corp, on the other hand, is limited to a maximum of 100 shareholders, and shareholders must be U.S. citizens or resident aliens.
Formation and Maintenance: The process of incorporation a business is generally more complex and formal than that of an S-Corporation. C-Corporations require more formalities, such as holding annual meetings and maintaining detailed records, while S-Corporations have fewer formal requirements. Additionally, C-Corps must file more extensive documentation with the state and federal governments, while S-Corps meet a reduced filing requirement.
Liability Protection: Both S-Corps and C-Corps provide limited liability protection to their shareholders, meaning their personal assets are generally protected in the event of business liabilities or lawsuits. However, C-Corps are often considered more attractive to investors and creditors due to their more formal structure and perceived stability.
Flexibility and Transferability: S-Corporations are generally more flexible in terms of transferring ownership and structure, as they can easily convert to a C-Corporation or another type of entity if necessary. C-Corps also have a more rigid structure and require more formal procedures to carry out modifications.
Ultimately, although both S-Corps and C-Corps provide unique benefits, the decision between them ultimately depends on the specific needs and goals of your business. If you focus on tax efficiency and flexibility, an S-Corporation may be the best option. However, if you want to attract investors, scale quickly, or need a more structured corporate structure, a C-Corporation may be the way to go. By understanding the fundamental differences between these two common business structures, entrepreneurs can make informed decisions about which type of entity best fits their business perspective.
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