7 Steps To Form A New York Corporation

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New York is a hub for businesses, with its strong economy, diverse industries, and favorable business climate. Forming a corporation in New York can be a great way to establish a strong presence in the state. However, the process can be complex and overwhelming, especially for those who are new to entrepreneurship. In this article, we will break down the 7 steps to form a New York corporation, providing you with a comprehensive guide to help you navigate the process.

Step 1: Choose a Business Name

Choosing a Business Name

Choosing a business name is the first step in forming a New York corporation. The name must be unique and not already in use by another business in the state. It's also essential to ensure that the name complies with New York's naming requirements. According to the New York Department of State, the name must:

• Contain the word "corporation," "incorporated," or "limited"
• Not be too similar to an existing business name
• Not imply a connection to a government agency or institution

You can search the New York Department of State's database to check if your desired name is available. If the name is available, you can reserve it for a period of 60 days by filing a Name Reservation Request with the New York Department of State.

Step 2: Appoint a Registered Agent

Appointing a Registered Agent

A registered agent is an individual or business that agrees to receive service of process and other important documents on behalf of your corporation. In New York, you are required to appoint a registered agent who has a physical address in the state. The registered agent's address will be listed on the public record, and it will be used as the official address for your corporation.

You can appoint an individual, such as a friend or family member, or a business that provides registered agent services. Make sure to choose a registered agent who is reliable and has a physical address in New York.

Step 3: File the Certificate of Incorporation

Filing the Certificate of Incorporation

The Certificate of Incorporation is the document that officially creates your corporation. It must be filed with the New York Department of State and must include the following information:

• The name and address of your corporation
• The purpose of your corporation
• The name and address of your registered agent
• The number of shares of stock your corporation is authorized to issue

You can file the Certificate of Incorporation online or by mail. The filing fee is currently $125.

Step 4: Create a Corporate Charter

Creating a Corporate Charter

A corporate charter, also known as a certificate of incorporation, is a document that outlines the basic structure and purpose of your corporation. It must include the following information:

• The name and address of your corporation
• The purpose of your corporation
• The number of shares of stock your corporation is authorized to issue
• The rights and privileges of shareholders

You will need to create a corporate charter that meets the requirements of the New York Business Corporation Law.

Step 5: Obtain an EIN

Obtaining an EIN

An Employer Identification Number (EIN) is a unique number assigned to your corporation by the Internal Revenue Service (IRS). You will need an EIN to open a business bank account, file taxes, and hire employees. You can apply for an EIN online through the IRS website.

Step 6: Open a Business Bank Account

Opening a Business Bank Account

Opening a business bank account is an essential step in forming a New York corporation. You will need a business bank account to separate your personal and business finances, pay bills, and receive payments. You can open a business bank account at a bank or credit union that offers business banking services.

Step 7: Obtain Licenses and Permits

Obtaining Licenses and Permits

Finally, you will need to obtain any necessary licenses and permits to operate your business in New York. The licenses and permits you need will depend on the type of business you have and the location where you operate. You can check with the New York Department of State and the local government where you operate to determine what licenses and permits you need.

Now that you have completed the 7 steps to form a New York corporation, you are ready to start your business. Remember to stay compliant with New York's business regulations and laws to avoid any penalties or fines.

We hope this article has provided you with a comprehensive guide to forming a New York corporation. If you have any questions or need further assistance, please don't hesitate to ask.