How to Start a Professional Corporation in New York (5 Steps)

You may be wondering what you have to do to start a professional corporation New York company. If so, I am here to help. Contact me anytime at sam@mollaeilaw.com to get the professional legal advice you need. You will need help from a top qualified and competent attorney if you wish to incorporate in New York or any other US state. 

You can use my guide to get your business off the ground. The following information will give you a basic introduction to the steps you will need to take to establish your company as a corporation.

 

#1 – Create a Business Name for your Professional Corporation New York Business and Register It

If you want to set up a professional corporation New York business, you first need to name your business and register the name.

To begin this step, you will need to see if your chosen name is available. You can do this through the state’s Corporations, State Records, and UCC site. To search for the name, you will need to enter your corporation’s name, select its status, and choose a search type before clicking the search button. 

The database will not list any assumed names. These names, also known as D/B/A (doing business as) names, are listed by the state’s Division of Corporations. Any searches of this nature must be made in writing, by fax, or email request by corporations, limited partnerships, and limited liability companies (LLCs).

If you anticipate that you may have trademark issues, I can assist you with this search as well. Once you form your corporation, you may want to register your company’s trademark. Again, you can always email me for help at sam@mollaeilaw.com.

What the Business Name Should Include

To ensure that you do things properly, your company’s name should include one of the following words:

• Incorporated
• Corporation
• Limited
• An abbreviation of one of the above three words, such as Inc., Corp., or Ltd.

You will have to pay a small filing fee to perform the name search.

Set Up Your Business Domain and Email

Before you commit to a specific name for your business, you also want to check on your company’s website URL. Find a quality domain name and buy it right away, if possible.

Doing so will make it easier for your clients or customers to find your business and website. You should also establish a professional email account, which can be obtained by using a service, such as G Suite by Google Cloud.

 

# 2 – Choose and Appoint a Registered Agent for the Professional Corporation New York Business

The registered agent for a professional corporation New York business manages the receipt and processing of incorporation documentation, such as legal notices, tax forms, and state filings. The agent handles this paperwork on your behalf.

You should choose an individual who lives in New York or a business entity that has been registered. Make sure the agent can accept and process the documents during regular business hours, or from 9:00 am to 5:00 pm each day. 

You may also employ a third party to perform this type of work. I can help you with this detail and give you further information about this requirement. Contact me at sam@mollaeilaw.com with your inquiries.

 

# 3 – Prepare and Submit a Certificate of Incorporation for the Professional Corporation New York Business

Once you are ready to do business, you will need to prepare and submit a certificate of incorporation to make your professional corporation New York company official. 

This document covers information about your brand and information about the business location, the name and address for your company’s brand, details about the registered agent, and details about the hours of operation. This filing is important, as it officially makes your incorporation official.

You can learn more about this filing by visiting the New York State on-line filings site for business owners. Online filings may be submitted for a for-profit corporation as well as limited liability companies (LLCs). However, you will need my guidance and help to ensure that you do everything properly. 

Save More Time and Money by Obtaining Legal Services

Never underestimate the assistance offered by a legal expert in the field. You can save a lot of time and money, as well as your professional reputation, by depending on a skilled lawyer. I am always here, ready to help you with establishing your business at sam@mollaeilaw.com. Contact me anytime.

The certificate of incorporation is usually used to address the basic requirements for a business, and may not feature optional amendments, such as director liability, shareholder voting rights, or similar details. Therefore, again, you will need my legal assistance to ensure that all the basics of incorporation, and provisions, are covered.

Where to Send the Certificate by Mail

If you wish to mail your certificate of incorporation by certified mail, rather than using electronic or other means, you can send the document to the following address:

New York Department of State

Division of Corporations

1 Commerce Plaza

99 Washington Ave. 6th floor

Albany, NY 12213

Special Note – Don’t forget the include the back page of the paperwork, which features the business title and the filing name and address. The charge for filing and obtaining a certified copy is $126 – $125 (filing fee) and $10 for the copy of the certificate.

As you can see, this step needs input from an attorney, as you still need to make sure that any special provisions are addressed. The attorney you choose should back your business dealings, not only when you incorporate but when you start doing business.

Again, you can use my services and prosper both legally and financially. Contact me by email at sam@mollaeilaw.com. 

 

#4 – Begin a Corporate Recording Book for the Professional Corporation New York Company

Your record book for your professional corporation New York company will serve you well, as it will contain all the major documents that need to be kept for business and legal reasons. Some of these documents include the bylaws for the corporation, corporate meeting minutes, and stock certificates. 

Consider this book, as a hard-copy binder of all your legal paperwork. I can show you how to set up your record book and what you need to do to ensure the retention of your files and important legal documents.

 

#5 – Select the Company’s Directors for the Professional Corporation New York Company

You will need to appoint at least one director for your professional corporation New York company initially – someone who will manage the corporation until the first meeting of shareholders. That is when new directors will be elected. 

The Incorporator Statement

You will need a lawyer’s help to create an prepare an incorporator statement – complete with the contact names and address of the company’s directors. The incorporator statement is one of the papers that will be maintained in the corporate recording book.

What the Directors Will Oversee

After they have been elected, the company’s directors will oversee the following:

• The appointment of company officers and the formation of the bylaws.
• The choice of a bank.
• The approval of stock certificate shares.
• The selection and approval of a corporate seal and stock certificate design.
• The approval (optional) of S-corporation status. S-corporation status is often chosen to avoid double taxation. A traditional corporation (C-corporation) is double-taxed – on its revenue and again on its share dividends. 

I can help you with the above endorsements and choices. I can also assist you with opening a business bank account and help your company determining its licensing obligations. You should hire an accountant to help you with your taxes. 

Obtaining an EIN

In the interim, use my help to obtain a free EIN, or an employer identification number for tax purposes. If you wish to go ahead and form an S-corporation to reduce your tax burden, you will need to submit Form 2553 to the IRS. Both an attorney and accountant can answer your tax questions. Once more, you can contact me at sam@mollaeilaw.com for legal assistance.

 

What Happens Next?

If you are still wondering how a professional corporation New York company is right for you, I can give you all the guidance and direction you need when forming the entity. Typically, start-up companies are created as C-corporations. The division of management renders long-term value for anyone wishing to invest in the company.

Small businesses frequently establish themselves as S-corporations or LLCs, otherwise known as owner-managed businesses.  Below are comparisons of the C designation and S designation for corporate entities.

C Designation

The owners pay a personal income tax on the company’s profits. The business must pay an income tax on the corporation.

S Designation

The owners pay a personal income tax on the business’s profits and the company’s income and losses pass through to the owners annually. This company cannot accept over 100 shareholders, and the owners of the company must live in the US. Either that or they must be resident aliens.

Do you want to establish a professional Corporation New York company? As you can see, you need legal support to do so. Shoot me an email today at sam@mollaeilaw.com so we can initiate incorporation of your start-up or small business enterprise right away.