Using New York Corporation and Partnership Law
Form a business with New York corporate law
Making a new corporation is one of the most common reasons for using New York corporation and partnership law. A small business may prefer to file the documentation needed to incorporate a business directly with the state. There are also many companies that provide business formation services for a fee.The most important factor in incorporating in New York is choosing a specific business structure. New York partnership law makes some important distinctions between a corporation and a partnership. A partnership generally does not pay a business tax although the partners are liable for business debts.
Corporate law defines the way in which the following entities interact:
1. Shareholders that provide funding when incorporating a business in New York. Shareholders may hold special privileges such electing a board of directors, proposing resolutions and sharing in the company’s income.
2. Directors that oversee the company’s activities. The activities of the board of directors are typically determined by the company’s bylaws. The board of directors and the shareholders are typically the same group of people in a small business.
3. Employees that provide expertise and perform labor for the company. Employees are also shareholders in many cases.
Select the best structure for your business according to New York corporation law
Your choice of business types can include corporations, full partnerships and limited partnerships. There are many sites that summarize business laws in New York and you may also need corporation law firms in New York to explain these laws to you.
Try: MyNewCompany.com outlines the differences in the various types of businesses in New York. Start-a-Business.com is based in Tappan and provides a comparison between a corporation and limited liability company.
Use a company to create a business under New York business corporation law
An incorporation service in New York can submit the required forms on your behalf in exchange for a fee. However, you will still need to comply with the disclosure, operating and reporting requirements.
Try: Inc-It-Now.com has an incorporation order form specifically designed for creating New York businesses. Incorporation Nation provides incorporation services in New York and also offers resources for doing business in New York.
Create a new business by yourself under New York state business corporation law
Each state has a department that is responsible for the formation of new businesses. You can complete these forms yourself and submit them directly to the correct government department.
Try: The Department of Corporations maintains the filing information for all business structures in New York. free2incorporate.com offers free e-books for incorporating yourself by state.
- You will need to select a name before you form a corporation in New York. Many online services provide a name search function to determine if a particular name has been used before. The required forms will also provide spaces for more than one business name in many cases. This increases the chances that an unused name can be found.
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