There are many perks of choosing a corporation over any other business entity in NYC. Read on to learn more about NYC corporations so that you make an educated decision. You can always call FastCorpUSA to get an appointment with our New York business formation lawyer. 

Why Start C-Corp In NYC? 

There is much more than you think when talking about the perks of starting a corporation in New York City. The publication cost and initial filing fees are not that expensive as compared to some other states. A corporation is a big deal in America as compared to LLCs. It is often mistaken same to those who don’t know the difference. The corporation is good if you want your business to come across as legitimate. There is protection, growth, and liability in New York for C-corporations. 

Read more about the difference between C-Corps and LLCs!

NYC Taxes For C-Corps

New York offers a federal tax credit named WOTC (Work Opportunity Tax Credit). This is valid for all companies in New York. The tax is credited to also those individuals who face difficulties in finding employment. This also includes individuals who collect food stamps and veterans. New York has some specific tax benefits for certain areas where businesses are formed. This is because the city is not tax-friendly for every corporation. The program is named the Start-Up NY Program. Moreover, there is the Tax Cuts and Jobs Act that benefit most of the corporations. The tax rate for corporations is a flat 21% through this act. Apart from that, New York hasn’t any collocative plan that outweighs the annual fees for C-Corps. 

Understanding American taxes is imperative for any incorporated business. It is much more important when establishing a corporation in the heart of America, NYC. Your approach must be highly careful as New York taxes for corporations depend upon the type of business you conduct. This in return influences the tax filing process and reduces the tax-related risks or penalties. 

New York Business Facts

Let’s dig into some facts straight!

The economy of New York is the third-largest in the country. The gross state product profit is $1.45 trillion. It is home to millions of small businesses from all around the world. The large talent pool living in the country and the surrounding area. The startup environment is also really smooth as it is a home to diverse population. There is an immense amount of startup capital and the community is one of the best in the country. The location is also valuable for many startups. Moreover, the fast-paced business environment is known for its financial service, communication, and media. 

Steps For Setting Up NYC C-Corp

New York stands upright for every business on its premises. It has always given friendly business incentive programs in a competitive business landscape. The new market tax credits and programs support small businesses in their initial stages. Therefore, everyone must take note of these incentives before stepping into the American landscape. The process could be different based on the type of business entity you choose for registration. 

You must note Some general steps before forming a C-Corp in NYC. 

Choose A Right C-Corp Name

 Your business name will tell your audience what kind of business you are dealing with. The business name is a unique identity. Your C-Corp must include words like ‘Incorporated’, Incorporation’, or any some kind of abbreviation to let people understand what kind of business entity you have. You must also prevent any sort of confusion by not choosing the same name as any other business in New York. This is simply done by inquiring about available names and searching through the New York State Department website. If there is a name that nobody claims, you can reserve it for 60 days by filing a reservation application for the name. 

Provide An Official Address

You need to provide this address for your NY state corporation. This could be outside New York but cannot be a P.O. Box. Every New York C or S-Corporation must have a designated street address. This could be the address of your company’s building or any physical address that you prefer or it could be your home address. 

Choose A Registered Agent 

Most states of America like you to have a registered agent for dealing with every kind of legal documentation. New York does it automatically for you. The built-in system of NY helps you to designate a registered agent. It is the state of the secretary by default. However, it is recommended that you designate your own. These specialized persons will help you to save time in the event of a lawsuit. Moreover, these agents will also take full responsibility for filing reports with the NY State Department. The agent also must have a physical address in New York. A registered agent could be you, a C-Corp officer, or a director. He also needs to be available during business hours to receive important corporate documentation. Registered agents work specifically for your business purpose. 

File Certificate Of Incorporation 

The ‘Certificate of Incorporation’ is a legal document required to create your new corporation. Your corporation formation must be solidified during the certificate filing and incorporation. The form can be filed by mail or online and comes with a $120 filing fee. It must include details like the purpose of filing, company address, name of the corporation, the main office in NY, stock issuance details, and designated registered agent details. Once the document is drafted, you can file it with the NY State Department. 

Prepare C-Corp Bylaws 

The bylaws are the basic ground rules set by the board of directors and shareholders of the C-Corp. This legal document provides C-Corp operating rules and establishes legitimacy. These were not filed at that time but boned formally and stored within the company’s main office. This comes along with important documents and meeting minutes. 

Appoint Directors 

The initial board of directors is designated by the same person who is responsible for filing the certificate of incorporation. In the same way, they will be responsible for conducting the board of directors’ meeting. This is done in the ‘incorporator’s statement’. The statement will include details like the names and addresses of the initial directors. The copy must be there and stored in the company’s main office.

Shareholders make some important decisions during the first board meeting. They appoint corporate officers and directors. Then, they select a corporate bank, fiscal year, and stock issuance, and adopt stock certificates. All the choices are recorded well and in the corporate minutes along with other important legal documents. 

Issue C-Corp Stock 

The stock is then issued to shareholders based on their property, cash, or any service contributions. A small corporation can use paper stocks to represent physically what each shareholder owns.

Meet Legal And Compliance NY Requirements  

You can’t get away with ignoring the legal and compliance requirements of New York. You need to get certain requirements once you create your C-Corp in NYC. Your C-Corp needs to file a biennial statement once a year. This should be done online on the State Department website. Certain legal requirements include filing IRS Small Business Tax Election Form 2553 if you want your corporation to be treated like an S-Corporation. You can then apply for business licenses and permits along with the Employer Identification Number. You can apply it for free on the IRS website. You need to get the license from the New York state, township, or your country and various industry or federal bodies. The New York state laws require annually reported franchise taxes even if it does no business or loss on profits. The tax reporting is due on the date the certificate of incorporation is filed until the corporation is dissolved legally. 

New York C-Corp Dissolution 

To dissolve a NY C-Corporation, you must file a certificate of dissolution. The same is filed on the state department website. The certificate must be a written consent. The department will check all the tax reports that incurred during the business tenure in the city. This will issue a certificate of dissolution along with attaching any kind of due tax liabilities. 

Need To Form A New York C-Corporation Quickly? 

FastCorpUSA provides you with a cost-effective service to create your C-Corporation. We are here to guide you properly and thoroughly and handle everything on your behalf. The reasonable package brings you much more including a registered agent service too. We can be a great help if you are looking for assistance, so feel free to contact us at info@fastcorpusa.com.