Moving Your LLC or Corporation to New York
You have an established business but a lack of skilled workforce, higher taxes, and strict regulations are making it tough for the business to survive. In such a scenario, the best option is relocation. Moving your business to New York has its advantages as it is a state of great opportunities. Relocation of a business doesn’t always mean that you have to dissolve the existing business. This guide will show you why New York is good for relocation, the business benefits in New York, and the options of moving your LLC or corporation to NYC.
Introduction – Why New York?
There are several reasons why entrepreneurs prefer to transfer their businesses to NYC or relocate to this state. New York is a high-growth state with a vibrant economy and the GDP is $1.7 trillion. There are several high-growth industries including manufacturing, IT, financial services, professional services, healthcare, retail trade, business services, and education among others. There are 114 Fortune 1000 Companies headquartered in the state and some of them started out as small businesses. The business benefits in New York including small business resources and incentive programs provide just the right environment for all forms of entities to quickly adapt and grow.
Buzzing startup environment
One of the benefits of moving your business to New York is the availability of a strong startup ecosystem. A good environment for startups and small businesses is necessary as it promotes ideas, inventions, and research. The startup ecosystem in New York comprises several aspects that are crucial for entrepreneurs and business owners like entrepreneurship education programs, startup accelerators, business incubators, seed funding, angel investors, startup mentors, and startup events among others. Whether you are moving a corporation to New York or an LLC, you can connect quickly to this existing ecosystem and maximize your revenue and growth.
The startup environment business benefits in New York that entrepreneurs can leverage include the availability of co-working spaces like WeWork or The Assemblage, which means you can conduct your business from just about anywhere. The NYC startup ecosystem raised $55 billion in funding from private-market investors last year and then there is the option of crowdfunding. All these factors make moving your business to New York a fruitful decision.
Tax based incentives
Taxes can sometimes be overwhelming especially in the initial stages of growth for a small business. When you transfer a business to NYC, there is a wide variety of tax-based incentives that you or your startup can leverage. The tax incentive programs are targeted at businesses in various industries and provide a certain degree of tax relief. The business benefits in New York where taxes are concerned include the following:
- Excelsior Jobs Program provides fully refundable tax credits
- The START-UP NY program provides an opportunity to operate tax-free for 10 years
- The Commercial Tax Credit Program offers credits of $7 million per year
- Economic transformation and facility redevelopment program tax credit
- Investment tax credit (ITC)
- Manufacturer’s real property tax credit program
- Sales tax exemption on equipment, machinery, and materials, used in Production
- QETC capital tax credit program
- Restaurant Return-to-Work Tax Credit Program
- Employee Training Incentive Program (E-TIP) tax credit
If you are thinking of moving your business to New York then there are several advantages the state offers. You will be able to qualify for different forms of government support programs that vary from providing financial assistance in the form of grants to high accessibility to valuable state resources that will assist you with business planning, operations as well as growth. Government support programs and resources are one of the top business benefits in New York and include:
- Innovation and Technology Support programs
- Capital Assistance initiatives
- Entrepreneurial Development programs
- Procurement Assistance
- Global & Export Assistance
- Contracting opportunities to enable minority and women business development
- Employee training and apprentice programs
- Comprehensive technical assistance through small business liaison offices
- Entrepreneurship Assistance Centers (EAC)
- Small Business Development Centers (SBDC)
- Small Business loans, grants, and micro-enterprise programs
One of the key motivations for moving your business to New York is the availability of a skilled workforce. The state of New York is home to one of the most comprehensive systems for higher education in the nation. It is home to some of the best colleges and universities including those in the Ivy League. Some of the top educational institutions include Columbia University, Cornell University, New York University, University of Rochester, Rensselaer Polytechnic Institute, University at Buffalo-SUNY, and Syracuse University among others. These institutions play a key role in shaping future entrepreneurs and provide the skill sets necessary and in demand. The skilled workforce is one of the unique business benefits in New York and is responsible for driving growth in startups, medium-sized enterprises, and large organizations.
Domesticating Your Company in New York
If you already own a business in another state and plan on moving your business to New York then it is possible. One of the processes to move your business is through domestication but does New York allow domestication? Unfortunately, as of now, there are no provisions to allow the domestication of businesses formed outside the state but there are other ways to transfer your business to NYC.
Steps to Move Corporation to New York
If you already own a corporation in any other state and are thinking of moving your business to New York then there are different options available. Although entity domestication in New York is not possible, you can choose two other processes for transferring your business to this state. Let us look at the processes in detail.
Register as a Foreign Corporation
One of the ways you can transfer a business to NYC is through the process of foreign qualification. This process is beneficial for those who don’t want to start a new business but simply want to expand their existing business to New York. Moving a corporation to New York through foreign qualification will be governed by 2020 New York Laws, BSC – Business Corporation, Article 13 – Foreign Corporations.
The procedure for moving your business to New York under foreign qualification is different from that of forming a domestic entity. The documents required and fees would also be different. The process of moving a corporation to New York will entail the following steps:
- You will need to choose a name for the foreign corporation that is distinguishable from any other names on the Corporation and Business Entity Database
- You need to conduct a name availability search to ensure your chosen name is unique and available
- You can also conduct a business in NYC under an assumed name or DBA (Doing Business As)
- You will need to file an Application for Authority to transact business in the state pursuant to NY Bus Corp L § 1304 (2020)
- You will also need to submit a certificate of existence, certificate of good standing, or certificate of status issued by the home state or state of incorporation
Do you want to know how to move a corporation to New York?
Dissolve the home Corporation and establish a new Corporation in New York
As you may already know, entity domestication in New York is not available and if you don’t want to undergo the process of foreign qualification then is there another option available? Yes, there is another way through which you can transfer a business to NYC. This option will involve dissolving your existing entity in the state of incorporation and applying for formation of a new entity in New York.
The laws and the procedure for dissolving a corporation can vary from one state to another. Hence, it is important to ensure you are in compliance with the laws of dissolution of the home state prior to moving a corporation to New York. You may be required to file a Certificate of Dissolution or Certificate of Termination depending on the home state. Once the dissolution is complete, you can transfer your business to NY by doing the following:
- Hire a registered agent in the state
- Prepare the corporation bylaws
- Reserve a corporate name
- File Certificate of Incorporation
- Get an Employer Identification Number (EIN)
- Obtain necessary licenses and permits
Steps to Move an LLC to New York
If you are operating a limited liability company and want to expand its presence in the state of New York then there are some options available. Entrepreneurs prefer moving an LLC to New York only because the state offers very good infrastructure, several tax relief programs, and a skilled workforce. Let us look at the processes that will make moving your business to New York possible.
Register as a foreign LLC
Entity domestication in New York is not yet possible and hence if you are planning to transfer a business to NYC then foreign qualification is one of the options. The benefit of registering as a foreign entity in New York is that your business will be operational in both the states, i.e., the home state (where you formed your LLC) and the new state (New York).
The process of foreign qualification of a limited liability company can vary from one state to another. In New York, registration of a foreign entity is governed by 2020 New York Laws, LLC – Limited Liability Company Law, Article 8 – Foreign Limited Liability Companies. So, if you plan on moving an LLC to New York as a foreign entity then the following processes will be applicable:
- You will need to choose a name for the foreign LLC and it should be distinguishable from names existing in the New York business entity database
- Your chosen name should be compliant with state laws and you need to conduct a name availability search
- You can also use an assumed name or DBA (Doing Business As) to conduct business in the state
- You will need to file an Application for Authority to transact business in the state pursuant to NY LLC L § 802 (2020)
- You will also need to submit a certificate of good standing or certificate of status issued by the home state along with the Application for authority
- You will need to fulfill the mandatory publication requirement in the state pursuant to NY LLC L § 802 (2020) i.e., a foreign LLC has to publish a copy of their application for authority in two different local newspapers
Are you thinking about how to move an LLC to New York?
Dissolve home LLC and form a new LLC in New York
If you don’t want to register your LLC as a foreign entity and yet want to transfer a business to NYC then there is one option available. You will be required to dissolve the LLC in your home state and form a new domestic entity in New York. This process of moving an LLC to New York is different from that of foreign qualification.
It is important to note that dissolution is an extensive process and hence, it is recommended to comply with all requirements of the home state before you initiate moving an LLC to New York. The steps for LLC formation in New York are:
- Hire a registered agent in the state
- Reserve a business name
- File Articles of Organization
- Comply with New York LLC publishing requirements
- Apply for and obtain an EIN
- Apply for the appropriate New York business licenses and permits
Move Your Business to New York with IncParadise
The state of New York is one of the best destinations for relocating a business. This is more so because of the excellent infrastructure, availability of funding for startups, access to business incentive programs, and much more. If you plan on moving your business to New York then we at IncParadise will assist you with the process of relocating your business with ease.
At IncParadise, we understand that each business has its unique requirements and hence we not only provide guidance but also several additional services that will help you fulfill state requirements. Some of our top services include NY Registered Agent Services, obtaining EIN, and NY annual report filing among others.
Move your LLC or Corporation to New York today with our assistance, and work comfortably and efficiently. The process of moving your business to New York requires the valuation of your business. Our partner Eqvista will help you get through the process in an easy way. Eqvista delivers the best services at affordable prices!