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How to Incorporate in New York (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Incorporating a business in New York can seem daunting, but it is an important step to gain legal protections and legitimacy. Forming a corporation limits owners' personal liability, allows for easier transfer of ownership, and opens up options for financing. This article will walk through the key steps and requirements to properly set up a corporation in New York.

Why Incorporate in New York?

New York is one of the best states to base a business. It offers a huge customer base with a population of over 19 million. New York City is a global business hub. The state also has an extremely skilled workforce, business-friendly laws, and exceptional infrastructure. Overall the climate is ripe for entrepreneurs looking to grow a successful company. Incorporating also lends more credibility when trying to obtain financing.

Steps to Incorporate in New York

Follow these main steps to legally create your New York corporation:

Choose a Business Name

The first step is picking out a suitable name for your company. You’ll want to choose something unique and memorable. Prior to filing, you must check that another business isn’t already using your desired name. Conduct a name search through the NY Department of State database.

You also must follow these naming guidelines:

  • Include a corporate designation like "Incorporated"
  • Don’t use restricted words like "bank" without permission
  • Ensure it is distinguishable from other names on file

If your name passes the search, you can choose to reserve it with the state for 60 days for a $20 fee. This prevents anyone else from taking it in the meantime.

Appoint a Registered Agent

You must designate a registered agent, which is a person or service that agrees to accept legal documents on behalf of your corporation. Your agent must be located in New York and available during business hours. Often company owners will serve as the registered agent when first starting out. But using a registered agent service can also help maintain privacy.

File Certificate of Incorporation

To legally form your business, you must file a Certificate of Incorporation (sometimes called Articles of Incorporation) with the New York Department of State. This form requires details like your corporation's name, registered agent, stock details, and incorporator name. The filing fee is $125.

Create Corporate Bylaws

Bylaws establish the internal rules for your corporation. While not legally required, adopting bylaws is highly recommended. Outline voting procedures, board of directors duties, shareholder rights, meetings, officer positions, amendments protocols and more. Keep your bylaws at your principal place of business.

Appoint Directors + Hold Organizational Meeting

Directors are responsible for overseeing the corporation. Appoint them by filing an Incorporator's Statement with your other business records and hold an initial meeting to adopt bylaws and elect officers. Discuss key corporate decisions and keep minutes showing actions taken during the meeting.

Issue Stock

Issue stock shares to founders and shareholders in exchange for assets invested into the corporation. Record shareholder information and distribute stock certificates. Certain securities regulations apply when issuing large amounts of stock - most small NY corporations are exempt.

Obtain Licenses + Permits

Look into whether your specific industry requires additional licensing or permits beyond filing the certificate of incorporation. The state, county and city all may require extra registrations.

File Biennial Statement

Every two years you must submit a Biennial Statement, which updates the Department of State on your ownership structure and contact addresses. This form has a $9 filing fee.

Get an EIN

An Employer Identification Number (EIN) functions like an SSN for your business entity. Apply online through the IRS and then use it when filing taxes and employing workers.

Types of Corporations in New York

  • Professional Service Corporation: For certain licensed professions to incorporate while meeting industry regulations. Extra paperwork is required.
  • Close Corporation: Ownership is limited to 35 shareholders and there are restrictions on stock transfers. Extra formalities apply.
  • S Corporation: A federal tax election to be taxed similarly to partnerships. This is made separately from forming the corporation.
  • C Corporation: Standard corporation without any special tax elections. The most formal business structure.

Conclusion

Forming a corporation requires planning but takes the proper legal steps to establish a formal company in New York. The process involves naming your corporation, designating a registered agent, filing the certificate of incorporation, creating bylaws, issuing stock and obtaining business licenses as needed. Stay up-to-date on biennial filings. Discuss your business needs with an attorney to choose the right corporation type. Use this guide to get started incorporating your New York business.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
See the Legal Section within the Meow website for additional agreements.

U.K. Gilt pricing quoted net of fees. ~5% U.K. Gilt yield is sourced from Investing.com December 2023 6-month United Kingdom 6-Month Bond Yield. ~5% Treasury Bill yield is sourced from treasurydirect.gov December 2023 12-week U.S. Treasury Bill auction.

**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.