New York Corporation and Partnership Law Key Terms

Know the New York corporation and partnership law key terms shaping your business decisions

By Michele Vrouvas

Like other states, New York regulates organizations doing business within its borders. There are laws New York corporations must follow at each stage of their development, from formation to management and even to dissolution. While you will no doubt seek professional legal advice before starting a New York corporation or signing a partnership agreement in New York, knowing some key facts and terms related to corporate law will help you make the right choices for your business.

Limited partnerships

Limited partnerships exist when an individual owner of a company seeks funding from one or more other investors known as "limited partners." Limited partners play a less active role in the actual running of the company.
Try: Find Law discusses the pros and cons of limited partnerships for small businesses in New York and other states.

Business corporation

A business corporation is created by corporate law and is a separate entity from the partners that formed it.
Try: New York State explains what papers you must file in order to form a business corporation.

Non-profit corporations

Non-profit corporations are created by individuals who believe their collective efforts can benefit the public good. These organizations are allowed to realize profits but those profits must be channeled back into the corporation to sustain it and advance the cause it is dedicated to.
Try: State Lawyers goes into much detail about how to form non-profit corporations in New York, claim tax exempt status, protect yourself from personal liability and even dissolve the corporation.

Partnership agreements

Newly formed corporations in New York operate according to partnership agreements that specify each partners' role and responsibilities, in addition to identifying each partners' individual investment.
Try: The Citizen Media Law Project explains how partnership agreements can help you avoid a situation where courts might have to step in and decide issues between partners.

License requirements

New York state has license requirements for businesses that were formed in the state or are conducting business in the state.
Try: American Incorporators explains the standard license requirements for business corporations in New York.

Nonprofit Coordinating Committee of New York

The Nonprofit Coordinating Committee of New York was formed to provide business support for non-profit organizations.
Try: The Nonprofit Coordinating Committee of New York website has more information.