If you own a business in New York, seek recognition as a separate entity. Through the incorporation process, your business can act in its own name, whether asserting legal rights, selling or buying property, or switching to contracts. Working with a New York business attorney is highly recommended to ensure compliance with the Secretary of State guidelines. There are many boxes to check and key considerations to make, which we’ve outlined for you here.
Make Sure The Business Name You Choose Is Legally Available
The first step any New York business attorney will advise you to do is ensure the company name you choose is legally available. This involves performing an online search to determine the business name availability. Your New York business attorney can help perform this search and assist if another business with a similar name exists. If you determine that the business name you chose is available, then it’s recommended to verify it with the New York Secretary of State. Just remember your business name must include one of the following designations after it: “Incorporated,” “Corporation,” “Inc.,” “Corp.,” or “Co.”
Perform Local And National Searches On Your Chosen Brand Name
Other companies might not have their business listed as an incorporation, but they use a brand name identical to yours. Simply perform online searches via search engines and social media for your brand name. Some companies are only registered at the state level, so even if your business name was cleared with the New York Secretary of State, it could be used across state lines. It’s important to distinguish your brand for marketing and other purposes. In the digital world we live in today, you want your brand to be displayed prominently in online search results.
Select A Registered Agent For Your Corporation
Registered agents are required for all corporations. These agents will receive various types of correspondence on your corporation’s behalf, like regulatory inquiries and service of process. For New York corporations, the registered agent is required to have an address in New York whether they are an individual or a business. Mail must be received at a physical address during normal business hours rather than a P.O. Box.
Set Your Important Business Details To File A Certificate Of Incorporation
Fine-tuning your corporation’s business details is an essential part of the incorporation process. A New York business litigation attorney can help organize these meetings and put together key points to be discussed. Some of those details include confirming board appointments, finishing requisite documentation, solidifying the status of your corporation, developing your mission statement, and more. Every business is unique, so your New York business attorney can bring up topics of discussion. Once these points are finalized at your meeting, then you can likely proceed to file a Certificate of Incorporation with the New York Secretary of State to complete the process.
Discuss When Shareholder Meetings Will Be Held
A required meeting every corporation must hold involves shareholders. Shareholder meetings are required annually to discuss the election of directors and any other topics as outlined in the by-laws of your corporation. Any time a meeting is held, detailed minutes should be kept with any board of directors, committee, shareholders, and more. Confer with your New York business litigation attorney for any additional information on topics to discuss at the annual shareholders meeting and what minutes should be recorded.
Obtain Your Employer ID Number From The IRS
One of the final steps you must take to form your corporation is to obtain an Employer ID Number (EIN) from the IRS. This is similar to a social security number for your business and it will be your corporation’s unique identification when it comes to the federal government. Your EIN will be used to open a bank account, apply for loans and business licenses, file taxes, and many other business purposes.
Benefits Of Forming A Corporation In New York
So what are the benefits of forming a legal corporation in New York? One of the main benefits is that corporations can’t be held legally accountable for any debts that are valued at more than the value of the assets invested in the business. Without becoming a corporation, businesses are at risk of losing everything by default to pay for liabilities.
Business owners can also typically finance corporations more easily through loans. New York creditors evaluate the corporation’s credit instead of an individual’s credit, which gives them a better chance of being approved for loans. A corporation’s charter also must be separated into shares of stock, which makes future transfer of control more practical and easier.
How A New York Business Attorney Can Help You Succeed
While there are many benefits of forming a corporation in New York, there are also many requirements that must be met to ensure a smooth transition. Working with a New York business attorney can help you decide whether forming a corporation is right for your business. Once confirmed, they can help every step of the way to ensure all boxes are checked and the legal process is completed without issue. Protecting your company’s interests is a major responsibility of any business owner and having a New York business attorney on your side is invaluable.
Gordon & Gordon has many years of experience providing counsel to New York businesses and helping them through the incorporation process. If you are interested in forming a corporation, contact us to schedule a consultation to learn more about our firm and how we can help.