There are several essential steps you need to know to form an S corp in New York. S corporations are similar to C corporation startups except for their specialized federal and NY state tax treatment. However, before forming your New York S corporation, you should know that New York City does not recognize the S corporation status. This means your business would need to settle taxes on the corporation level. Generally, S corps can be a less expensive business formation option than LLCs. Their corporation structures including formation, ownership, and contracting tend to be familiar with more people as well. In this post, you’ll learn several essential steps to form an s corporation in New York.
Name Your S Corp
Prior to filing your certificate of incorporation, you need to name your S corp. You should make sure that your desired business name is available. To do this, you can utilize a free entity name check service. By filing the proper application through NY Dept. of State, you can reserve a corporate name for 60 days. When selecting your s corp’s name, you must include the words “incorporated,” “corporation,” or “limited” or the abbreviations “inc.,” “corp.,” or “ltd.” In addition, name must be distinguishable from other businesses on file with the NY Dept. of State. Moreover, your name cannot contain words prohibited by Section 301(a)(1) of the Business Corporation Law of New York. It is essential to name your S corporation properly before you can file for incorporation of your new business.
Provide An Official Address
Once you’ve chosen an appropriate name for your NY S corp, you need to provide an official address for your business. Every New York State S corporation is required by law to have a designated street address. If you are running the company from your home, this can be your residential address. It could also be your company’s office building or any other physical location of your preference. Notably, your S corporation’s street address can be outside of NY state. However, it cannot be a P.O. box. If you ever decide you change your business address, remember there are certain authorities you will need to inform. When filing for S corporation status for your New York business, you must provide an official address.
Choose Your Initial Directors
Before filling out paperwork for your S corporation, you need to choose your initial directors. In New York, you must appoint at least one director who will oversee your NY S corporation until the first shareholder meeting. Generally, the directors of a corporation are responsible for adoption, amendment, and repeal of operational bylaws. They also oversee the supervision, election, and removal of officers. You will need to prepare an “Incorporator Statement” with complete names and addresses of each director to keep in your corporate records book. However, when listing names on your certificate of incorporation in NY, you only require one initial director. Choosing your initial directors is an essential step when filing for incorporation in the state of New York.
File A Certificate Of Incorporation
Before electing an S corp status, you must file a certificate of incorporation with the New York Department of State. Typically, the total charge for creating an S corporation is about $195. Even if you have already elected S corporation status for your company at the federal level, you need to make this election for NY state. To receive state approval, you have to file Form CT-6. You can fax this form along with a copy of your federal S corp approval letter to 518-435-8605. After filing for S corporation status, you will receive your approval paperwork typically within a few days. These documents are necessary to open a bank account in your S corp name and conduct other business procedures. Filing a certificate of incorporation is a vital step in the s corporation formation process.
Appoint An Agent And Prepare Bylaws
Once you’ve filed your certificate of incorporation, you need to appoint an agent and prepare bylaws. Every NY corporation must appoint the New York Department of State as its registered agent. They will accept and forward legal paperwork on your corporation’s behalf if it is sued. Next, you need to prepare your corporate bylaws to set basic operational ground rules for your business. While not legally required, you should consider adopting guiding corporate bylaws to protect your business and legitimize it with banks. Optimally, you should keep a record of your bylaws, meeting minutes, and other important documents at your corporation’s principal office. Once you’ve elected S corp status, it is imperative to appoint a registered agent and prepare bylaws.
There are several comprehensive steps when filing for S corporation status NY. First, you need to properly name your S corp to meet legal requirements. Next, you need to provide an official physical address for your business. Then, you need to choose your initial directors to oversee operational and administrative procedures within your company. In addition, you must file a certificate of incorporation to elect your business as an S corp in NY state. Once you have filed, appoint an agent and prepare corporate bylaws for your business. It is important to stay compliant with rules and regulations mandated by New York’s Dept. of State as long as you operate an S corp. Consider the essential steps mentioned above to form an S corp in New York State.