A business is required to be registered in the State of New York to conduct business.
The types of business entities that operate in New York State are:
- Business Corporation
- Limited Liability Company
- General Partnership
- Limited Partnership
- Sole Proprietorship
- Not-for-Profit Corporation
Advantages of Incorporating in New York
One of the first question that comes to mind when creating a company in New York is whether it would be more interesting to create it in New York or in Delaware.
There is no absolute answer, instead it will depend on the purpose and the size of the corporation to be formed. It is no secret that Delaware has always been a business-friendly state and it attracts many companies from all over the world by the ease of its incorporation system, entirely online.
Yet, if the purpose of the future company is to do business in New York, logistically it makes more sense to incorporate the said company in New York instead of Delaware or any other State for that matter, and then pay additional fees in New York to be authorized to do business there.
Moreover, New York LLCs, as Delaware corporations, allow the protection of its members’ interests from creditors. So there is no longer a big advantage in incorporating in Delaware rather in New York.
Advantages of Corporation
In New York, a corporation is formed by filing a certificate of formation with the Department of State. Based on the tax regulations, a corporation owes federal taxes while its shareholder can choose to be taxed as an S corporation. This means the cooperation will be taxed on its final result, after distributing the dividends to the shareholders. The advantage is that this option allows the shareholders to avoid federal taxation.
On the contrary, the LLC is not taxable because it is not considered as a legal entity. Therefore, only the owners of an LLC can be taxed, both at the federal and State level.
CONTACT THE OFFICE TO REGISTER US AS REGISTERED AGENT