Each state has different requirements for forming a corporation. Whether you are forming a corporation for a new business or an existing business you'll want to understand the New York incorporation requirements.
How to start a corporation in New York
Starting a new business comes with a variety of challenges. The following highlights some of the critical steps needed to keep your business compliant if you decide to form a New York corporation. For more information on forming a corporation, view our webinar “What You Need to Know When Deciding Whether to Register Your Small Business”.
Decide on a name for your corporation
Naming your corporation is an important step that needs to be considered carefully. There are many business and compliance requirements to weigh when making the final decision on your corporation’s name.
Your corporation’s name cannot be the same as the name of other corporations, limited liability companies, or limited partnerships already on file with the New York Department of State. Certain other words and phrases are restricted or require the consent or approval of another state agency. Read our article for more tips on naming your business.
BizFilings offers a free state name check to help you check the availability of your desired corporation name and we can help you reserve your name when you’ve made your decision.
Determine shares of stock
Each state requires as part of the incorporation process for the corporation to indicate how many and what classes of shares will be authorized. New York requires a statement of the number of authorized shares and whether the shares are with par value or without par value. This is often a discussion businesses have their attorney or accountant prior to deciding on the number and classes of shares. The shares of stock can impact tax or legal compliance considerations down the road.
Select your registered agent
A registered agent (also often referred to as an agent for service of process) is a person or business you appoint to receive and forward to you important legal and tax information. New York requires corporations to appoint the New York Secretary of State as its agent for service of process and provide an address to which the Secretary of State may send a copy of process received. Corporations may also appoint a registered agent in addition to the Secretary of State. BizFilings includes this service in all incorporation packages.
Prepare and file with New York
Incorporating your business in New York requires you to file one copy of the Certificate of Incorporation with the New York State Department of State. The Certificate of Incorporation requires the corporation to indicate its purposes. If the corporation will not engage in any activity that requires consent from a state agency, then an all-purpose clause can be used. The Certificate of Incorporation is signed by the incorporator or incorporators. The documents filed with the Department of State after incorporation must be executed by an officer, director, attorney-in-fact, or other duly authorized person.
Obtain a federal employer identification number
A Federal Employer Identification Number (EIN or Tax ID) is an IRS identification number used for businesses. The most common comparison is to an individual’s Social Security Number. The EIN must be obtained by corporations to be used when filing taxes. However, it is also often used for other important business activities, such as opening a business bank account, obtaining a loan, or paying invoices. Check out our article on Federal EIN for more information.
Meet your license and permit requirements
Your corporation may be required to obtain licenses and permits before it can legally operate in New York. There are many factors that go into determining which licenses and permits at the federal, state, and local levels are required for your business. For example, if you plan to hire employees, you may need a payroll tax registration and depending on where they are based that could have implications as well. Read our article “Understanding business licenses” for more information.
Cost to incorporate in New York
At BizFilings, we clearly outline our fees and the state fees to form a New York corporation. View our pricing to incorporate as a C corporation or S corporation to plainly see:
- BizFilings’ package prices. BizFilings offers three incorporation service packages from which you can choose.
- State fee for standard turn-around. Our pricing clearly shows the state fee to incorporate in New York with standard turn-around.
- Expedited turn-around. You will see the BizFilings and state fee, if any, for expedited turn-around.
- Certified copy. Our pricing also clearly displays the BizFilings and state fee, if any, for issuing a Certified Copy of the Articles of Incorporation.