New York is like a ‘go-to’ place for all visionaries, entrepreneurs, or business owners. It’s like a mecca of opportunities. And that is why it is prevalent among the people who want to make it big. But it all starts only after making a practical and feasible plan and going step by step. And the first step in every business is setting up a corporation. And what’s a better place than New York to establish your business’ first steps? Setting up a corporation in this fast-paced city is not that easy, but it is not that difficult either. So let’s discuss the procedure of an NYS Corporation formation and what are its essential requirements.
It isn’t that difficult!
It may seem not easy to establish a business in such a sought-after destination, but that’s not true. Specific steps need to be followed to set up a corporation in the mecca of achievers.
Step 1: Decide the Name of your Corporation
A Name provides uniqueness to a corporation, and that’s why to stand out among the crowd, you have to decide on a unique and non-controversial name for your corporation. It should be catchy, simple, and also suitable according to the New york naming guidelines.
Some details from the guidelines:
- Some words like “incorporated,” “limited,” “corporation,” or the abbreviation of these words in the name of your corporation are a must.
- The name you choose should be unique & distinguishable from any other pre-existing business present in your state or the list of reserved names. You can check the availability of your desired name.
- If you want to include some words that are not appropriate or restricted, you must first take approval.
- Your corporate name shouldn’t be related to a government-owned agency or corporation.
- The name shouldn’t contain anything that is not suitable or affects a person, business, beliefs, or group.
- You should also check the URL’s availability of your desired name. Even if you want to set up your business in the future, it is better to purchase a relevant domain name for your corporation before anyone else reaches it.
Step 2: Choose an established New York agent.
When your corporation gets registered with the State Department, you need to go for an agent that looks after the process service. After filing the New York Certificate of Incorporation documents, the State Secretary is designated as the principal agent for service of process by default. All the business changes, lawsuits, or summons that might occur in the future will be presented in front of the State’s Secretary and then transferred to you or your agent.
A registered agent can be an individual or entity appointed by a company or an LLC to govern their corresponding business processes. An experienced person is needed at various stages of an NYS Corporation formation to handle the whole process effortlessly; that’s why he/she is an integral part of a corporation.
Step 3: Share structure and Directors
Before filing the Incorporation certificate, it is necessary to find the exact structure of the corporation and initial directors. The initial director would be the face of your corporation until the first meeting with shareholders takes place. He can also be called the corporate director. When a corporation is formed, all the incorporators should call an organizational meeting to elect the board of directors.
Stock shares are like a unit of ownership that is associated with every corporation. They can be distributed into classes, can be classified with the help of different rights and different kinds of privileges. There can be multiple classes comprising any number of shares.
Step 4: Filing for New York Certificate of Incorporation
To set up an LLC or a corporation in NYS, one needs first to file the New York Certificate of Incorporation. This document is like a foremost step in the NYS Corporation formation process that straight away creates your New York Corporation. It is filed with New York’s state department by mail or individually with a filing fee of $125.
This certificate authorizes 200 common shares according to the value of the corporation. If a corporation needs more than 200 shares or common shares, then the corporation must file for its Incorporation Certificate.
Step 5: Employer Authorization Number (EIN) of your NYS Corporation
An EIN or a Federal Tax Identification Number (FTIN) is mainly for the federal government to distinguish a business entity. It is like a unique social security number associated with a company. It is an essential part of a corporation because it is needed to open a company’s bank account for state tax purposes and hire employees.
So these are the essential steps that should be taken to start a corporation in New York—looking for a trustworthy organization that would help you in your NYS corporation formation process? Windsor corporate services can help you out with every process. With the help of their expertise and professional guidance, you can set up your dream corporation in a pretty hassle-free way.