General Guide to Company Incorporation in New York
Updated on Tuesday 27th March 2018
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New York is the most populated state in USA, a cultural and an important financial center also called the “Empire State”. The state is defined by its significant influence on commerce, media, entertainment, and outlined by the diversified people living in Queens, Brooklyn, Staten Island, Manhattan and Bronx, the five important boroughs of New York. We have prepared a general guide to company formation in New York which can help entrepreneurs to set up a company in USA, and particularly in the most wanted state for business in the world - New York. Our company formation agents in USA can offer in-depth information and guidance at the time of company incorporation in New York.
Opening an LLC in New York
Entrepreneurship, cultural diversity, social influence, and the environmental sustainability are only a few of the attributes that made New York a powerful state from an economic point of view. Having a multitude of business opportunities, people around the world can explore fruitful business climate and can set up different kinds of companies in New York.
A limited liability company may represent the suitable business form for different kinds of entrepreneurs, whether at the beginning of their career or as professionals. The incorporation starts with preparing the Articles of Association and the submission to the New York Secretary of State and particularly the New York Department of State Division of Corporations, where you must reserve a name for your business. Just like in any state, your LLC in New York must have a registered agent who accepts and forwards the legal documents of the firm and who must have residency in New York. Also, another corporation can represent your newly-incorporated company in New York. We mention that our company formation specialists in USA can act on behalf of your LLC in New York and can also ease the incorporation process so you won't have to travel to USA for company registration.
The operating agreement for your LLC in New York
Compared to other states, where the operating agreement is not mandatory, in New York, each LLC must have such legal document besides the Articles of Association. This is an internal document that offers complete information about the obligations, the powers, the liabilities, the duties and the rights for voting of each member who formed the company. As soon as the Articles of Association have been accepted, the LLC must publish a copy of them in two local newspapers within 120 days.
Apply for EIN in New York
The Employer Identification Number (EIN) is the federal tax ID issued by IRS (Internal Service Revenue) and represents the legal form of operating on the market as a taxpayer in New York. The application for EIN can be made on the official website of the tax authority, but for a better understanding of the rules, we suggest you address to our team of company incorporation specialists in USA. We remind that our team can help you start a company in USA in any chosen state.
Taxes in New York
The sales tax in New York ranges between 4% and 8.88% imposed in several cities of this state. Please bear in mind the New York City, the biggest municipality in New York state imposes a sales tax of 8.88%. In the same category of taxes, one must pay the annual state filing fee imposed on local and foreign limited liability companies in New York and ranges between $25 and $4,500, depending on the incomes registered by the business at the end of the year. LLCs treated as corporations for federal income tax purposes do not need to pay the annual state filing fee in New York.
Other types of businesses in New York
Even though the limited liability company is the most popular business form in New York, there are also other options for local and foreign entrepreneurs to set up companies in USA such as:
• limited and general partnerships;
• not-for-profit corporations;
• sole proprietorships;
• business corporations.
Before choosing the business form in New York, it is recommended to ask for legal advice or better yet, you can talk to our company formation representatives in USA for complete information in this sense. If you want to open a company in USA, and especially in New York, keep in mind that the registration process is less bureaucratic and can be explained by our advisors at any time.
The economy of New York
Business and commerce blend properly in the state of New York, the global hub is home to major financial operations. Real estate, retailing, finance, tourism, transportation, advertising, media, insurance, legal service, world trade sustain the well-developed economy of New York, the most representative state in USA. 2017 was the year of full employment, according to economists who outlined that New York is the state where looking for a job is not a problem.
Albany is the capital of New York and a significant business center of this important American state. New York City is the biggest metropolis in the state with a population of approximately 9 million inhabitants of all nationalities. Buffalo, Kingston, Cortland, Hudson, Niagara Falls, Rochester, Watertown or Yonkers are among relevant cities in New York where entrepreneurs can develop their businesses. The modern architecture represented by the well-known skyscrapers, the entertainment, the international diplomacy relations (United Nation has its headquarters in New York), the largest stock exchange in the world and the biggest port with connections worldwide make New York a preferred and a competitive business destination for everyone.
If you would like to set up a company in USA and particularly in New York, we kindly invite you to contact our team of company incorporation specialists in USA.