Why Start an NYS Corporation?
The state offers a range of business incentives, giving businesses in New York a competitive edge. Your corporation may be able to take advantage of these incentives, provided it meets qualifying criteria. For example, the Excelsior Jobs Program provides tax credits to approved businesses that meet and maintain established job and investment thresholds outlined by the program. Companies may qualify for five fully refundable tax credits. For most entrepreneurs looking to start a larger business, NYS incorporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your goals. For smaller businesses, limited liability companies are usually a better option. An LLC are easier to set up and receive many of the same benefits as corporations, but with less regulation. Learn more about forming a New York LLC so you can decide which business entity is right for you.
Benefits of Forming a New York C Corp
The strongest form of liability protection possible by insulating your personal assets and finances from business debts, obligations, damages, bankruptcy, or other liabilities
Several options to create, buy, sell, or transfer stock, including publicly
The ability to issue more than one type of stock
The ability to raise more funds by issuing more stock
The ability to sell stock to investors inside and outside the U.S.
Benefits of Forming a New York S Corp
It offers several advantages similar to those provided by a C Corp including, but not limited to:
Options for creating, transferring and selling stock, though not as many as a C Corp
The capacity for up to 100 shareholders
Simpler rules than those applicable to C Corporations
Easy transfer of ownership simply by selling your stock
The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Department of State in New York.