4 ms·
Help change a NY law that costs new businesses $2,000 each
- tsaoutourpants 13y agoFormer New York entrepreneur here. There's a simple solution to this: don't incorporate in New York. You can incorporate in any state you want simply by having someone to receive your mail there (known as a "registered agent"). The laws in New York are absurd. I incorporate in Florida now, and it costs $70 and takes filling out a 5 minute form.
- _delirium 13y agoIf you physically operate out of New York, that does still require paying NY State a $300/year "foreign corporation doing business in New York" fee, plus a one-time $225 filing fee: http://www.tax.ny.gov/pdf/publications/corporation/pub24.pdf http://www.tax.ny.gov/pdf/publications/corporation/pub24.pdf ("Foreign" in this usage means out-of-state, not necessarily international: https://en.wikipedia.org/wiki/Foreign_corporation https://en.wikipedia.org/wiki/Foreign_corporation)
- tsaoutourpants 13y agoIf you're a tech company, chances are you don't have a storefront, or even employees in an office, so you don't have a physical presence anywhere.
- nehalm 13y agoThat's right, an LLC incorporated elsewhere that wants to qualify to do business in New York also has to publish notices: http://www.dos.ny.gov/corps/llcfaq.asp#pubreq http://www.dos.ny.gov/corps/llcfaq.asp#pubreq
- marveller 13y agoBut there are costs for registered agents?
- tsaoutourpants 13y agoNot $2K. If you have a friend living in another state, they can be your registered agent.
- rmkalita 13y ago2k is ridiculous. people will have less incentive to set up shop in nyc bc of this rule.
- dragonwriter 13y agoPhenomenally misleading -- a cost associated with LLCs is not a cost for "new businesses" generally; LLCs are by far not the primary vehicle for "new businesses".
- gamblor956 13y agoLLCs are now the most popular form of business entity for new businesses. They offer the structural flexiblity and pass-through taxation of the partnership form while providing the liability protections of the corporate form. Moreover, unlike S-Corps, LLCs can have owners that are other businesses or that are foreign entities. There are certain circumstances in which LLCs are not the best form--i.e., where certain applicable tax deductions and credits are limited to corporate entities, where VC investment is sought, or where a formal management hierarchy is required by law (i.e., for nonprofits or publicly traded companies). But generally, LLCs should now be considered the default option for any new business.