Starting a Business in NY Considerations
Creating a legal entity is one of the most important decisions you will make as a business owner2 min read
Creating a legal entity is one of the most important decisions you will make as a business owner. It will determine how your business will operate and how you will interact with the government, your customers, and potential suppliers. While the same basic steps are generally required when creating a business regardless of where you are located, the specifics often differ significantly from state to state.
Those located in New York should be aware of the unique laws and regulations surrounding business formation. This article will cover the key considerations when getting started on company definition in New York. It will provide an overview of the various legal options available to businesses in the region, explain the importance of having a lawyer on board, and provide tips for finding the right fit.
Understanding the Legal Options Available in New York
When creating a business, entrepreneurs in New York will need to decide which legal entity is right for their company. While sole proprietorships and partnerships are one option, many larger businesses will require the more robust protection offered by a corporation or limited liability company (LLC).
Incorporating as a C Corporation implies that you are creating a distinct legal entity with its own rights and obligations. As such, the company’s debts, liabilities, and profits/losses are separate and distinct from those of the founders and shareholders. Corporations also enjoy the benefit of dividend taxation, which can provide tax savings when compared to other forms of business entity.
By contrast, forming an LLC in New York offers founders both the limited liability protection of a corporation and the pass-through taxation of a partnership. Profits and losses can be easily passed through to owners, who are instead subject to self-employment taxes. This can be advantageous when compared to the high corporate income tax rate. Additionally, LLCs are generally less expensive and tedious to form and maintain when compared to corporations.
Finding the Right Legal Team
New York has a wide range of business laws and regulations that must be followed in order to ensure compliance. Having a qualified lawyer to guide you through this process is essential.
At UpCounsel, we are an online service that connects qualified attorneys with businesses who need legal assistance. Our attorneys have an average of 14 years of experience, and our profiles display ratings and reviews of their recent work. For New York businesses looking for legal support, UpCounsel’s network of experienced attorneys provides a cost-effective solution.
Wrapping Up
The steps required to create a legal entity in New York differ significantly from what is required in other states. It is important to understand the various legal options available, both in terms of the benefits they offer and the obligations associated with them. Additionally, businesses operating in New York must ensure that they are in full compliance with the multitude of laws and regulations in the area. For those seeking legal counsel, UpCounsel provides an online network of experienced attorneys who offer high quality, cost-effective legal services.
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