Choose a type of business in New York

Last updated on: July 23, 2021

When deciding which business type works for you, be it an LLC New York or otherwise, you have to think about your organizational goals. Also, consider how the local and state laws will affect your choice. Today, we look at all options available to you and their features:

What types of companies can I register in New York?

Below, we have covered the most prevalent New York LLC type of business and their most prominent features.

Types of Business Entities/Structures

What is a Business Corporation?

These structures are seen as separate from their owners, and they thus enjoy rights individual from yours. As such, these can sue and be sued. They even have the right to sell and own properties, including stocks. Not all corporations are the same, and they fall under B, C corporations, S corporations, closed and non-profit structures, all of which operate by a different set of rules.

Owners of such entities enjoy continuity, such that even in their death, the organization can still run by transferring the deceased’s shares to another person. This continuity appeals to consumers, creditors, and investors who want to work with stable companies. Additionally, it is much easier to raise capital for such structures, which also enjoy limited liability. You would not be liable for any claims against the business.

What is a Not-for-Profit Corporation?

This structure falls under corporations and is also considered an independent entity, sharing the rights and advantages outlined under corporations. However, it takes on a different route in its operations by helping people out to some extent. For this reason, it enjoys tax exemptions. The goal of such an organization is to engage in businesses that are not aimed at turning profits but rather aiding society.

What is a Limited Liability Company?

This form of setup enables you to limit your liability against claims made on the business. Furthermore, you can also choose how you want to get taxed while enjoying flexibility in running your operations and adding more people to the organization. As long as you do not act in an illegal or unethical manner when handling business transactions, there is no reason why you would be held personally liable for any of the LLC New York debts. The fact that you can have your earnings and losses passed to your returns makes this an even better choice.

What is a General Partnership?

Partnerships come in several forms- general and limited. In the first case, two or more people engage in a business where all people share rights and responsibilities. If an organization gets sued, all members are held liable for the actions of the company. On the plus side, a GP in New York requires minimal paperwork, is easy to get started, has growth potential, and flexibility when filing taxes.

What is a Limited Partnership?

Such an entity is just like any other partnership, only that some members have more control over the operations and are held liable when things go wrong. The other LP in New York members contribute to running the operations, albeit to a small extent, and are subject to receiving a share of the profits.

What is a Sole Proprietorship?

When you form a sole proprietorship in New York, there is no distinction between you and the business, making you liable for profits and debts. It is a simple setup that works for anyone who wants to be their boss or does not want to incur high startup costs. Please note that the lack of separation between you and the business makes you liable for anything that goes wrong when running the operations.

It’s easy to set up and exit this structure which also costs a minimal amount. Plus, you can benefit from a range of tax deductions.

Why is LLC the best option for fast company formation?

A New York state LLC offers some benefits you may not find in other setups. These include:

  • The ability to avoid double taxation by passing losses and earnings to personal returns. Additionally, you can alter how you pay taxes based on the number of people in the organization.
  • Being subject to fewer formalities regarding how you carry out your operations. The law does not require you to come up with minutes or hold a given number of meetings per period.
  • More flexibility on how many people you can have in the organization, unlike the case with other setups.

Furthermore, this setup can run in perpetuity and allows you to raise funds by offering shares to the public.

Should I use a DBA for my LLC in New York?

A DBA (doing business as) name is essential if you want to change your business name or introduce another identifier for your organization. There are several reasons why one would want to register a DBA. For example, if a company currently sells high-value goods and intends to introduce a low-value goods line, another name may be necessary. The original name can work for the high-value goods, while the DBA for your New York LLC would work for the new marketing line.

What Is a DBA in New York?

While it might be confusing, a DBA New York state is an alternative name for your business but does not amount to forming another entity. The rules applicable to your organization remain the same. Getting DBAs in this state can help you expand into other markets or even introduce a new product line under from the main company.

How to file a DBA in New York

In this state, DBAs are known as assumed names. You can make a New York state DBA application via:

Online

You cannot register a DBA online in New York, and you have to make do with mailing the application.

Mail

First, you have to go through the state’s database and ensure your DBA for an LLC in New York is available before completing the Certificate of Assumed Name form. You can now mail or fax this to the Division of Corporations for a fee of $25.

New York State Department of State
Division of Corporations
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231

In-person

Alternatively, you can deliver the fictitious name form in person.

Senior Business Tax Writer, etc
Jean Wilson Murray
https://bestllcservices.co/
(323) 789-5289
Senior Business Tax Writer, etc
Jean Wilson Murray

In this IncFile vs ZenBusiness review, we're going to compare two of the most popular LLC formation services based on pricing, features, and drawing out differences and similarities to let you see which is most suitable for you and your business.

You can learn more about @Mike here.

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