

Help change a NY law that costs new businesses $2,000 each - nehalm
http://www.llcreform.org/hn/

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tsaoutourpants
Former New York entrepreneur here. There's a simple solution to this: don't
incorporate in New York. You can incorporate in any state you want simply by
having someone to receive your mail there (known as a "registered agent").

The laws in New York are absurd. I incorporate in Florida now, and it costs
$70 and takes filling out a 5 minute form.

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_delirium
If you physically operate out of New York, that does still require paying NY
State a $300/year "foreign corporation doing business in New York" fee, plus a
one-time $225 filing fee:
[http://www.tax.ny.gov/pdf/publications/corporation/pub24.pdf](http://www.tax.ny.gov/pdf/publications/corporation/pub24.pdf)

("Foreign" in this usage means out-of-state, not necessarily international:
[https://en.wikipedia.org/wiki/Foreign_corporation](https://en.wikipedia.org/wiki/Foreign_corporation))

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nehalm
That's right, an LLC incorporated elsewhere that wants to qualify to do
business in New York also has to publish notices:
[http://www.dos.ny.gov/corps/llcfaq.asp#pubreq](http://www.dos.ny.gov/corps/llcfaq.asp#pubreq)

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dragonwriter
Phenomenally misleading -- a cost associated with _LLCs_ is not a cost for
"new businesses" generally; LLCs are by far not the primary vehicle for "new
businesses".

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gamblor956
LLCs are now the most popular form of business entity for new businesses. They
offer the structural flexiblity and pass-through taxation of the partnership
form while providing the liability protections of the corporate form.
Moreover, unlike S-Corps, LLCs can have owners that are other businesses or
that are foreign entities.

There are certain circumstances in which LLCs are not the best form--i.e.,
where certain applicable tax deductions and credits are limited to corporate
entities, where VC investment is sought, or where a formal management
hierarchy is required by law (i.e., for nonprofits or publicly traded
companies). But generally, LLCs should now be considered the default option
for any new business.

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rmkalita
2k is ridiculous. people will have less incentive to set up shop in nyc bc of
this rule.

