If your business is seeking recognition as a separate entity, New York law allows you to proceed through a process called incorporation. Once you become an incorporated business, you act in your own name, regardless of whether you’re buying or selling property, switching to contracts or asserting legal rights. According to New York law, in order to become incorporated, a business is required to file with the Secretary of State in compliance with a specific set of guidelines.
The Benefits of Business Incorporation in New York
Corporations enjoy certain benefits unincorporated entities don’t. Primarily, corporations can’t be held accountable for having any amount of debt valuing more than that of the assets its owners have invested in it. If the business hadn’t become a corporation, it would be risking the loss of all personal property by default in order to pay for any company financial liabilities in the case of debt.
Corporations are also easier to finance through loans, because creditors in New York evaluate their investment by evaluating the corporation, rather than the owner’s individual credit. Finally, a corporation’s charter includes a requirement that ownership be split into shares of stock of equal size, making the transfer of control much easier and more practical.
If you need New York business counsel or help incorporating your business, contact us. Our experts will take care of everything, making your transition smooth and easy.