Business Formation

Starting a business in New York means making one decision before almost anything else: what kind of legal entity it will be. That choice affects your personal liability, your taxes, and how much flexibility you have to bring on partners or investors later. Get it right at the start and the rest of the formation process is straightforward. Get it wrong and you may end up dissolving one entity and refiling as another.

Fisher Stone helps New York founders choose and form the right entity for a single flat fee, quoted up front. A real, licensed New York attorney handles your matter from start to finish, reachable directly by call, email, or text. No call centers, no handoffs to junior staff, and no guessing what the process costs before you commit to it. Formation sits inside our broader business law practice, and our running a business guidance covers what comes after you file.

Choosing the right entity in New York

There is no single best entity for every business. The right structure depends on what your business does, how many owners it has, how you plan to be taxed, and whether you expect to raise outside money. An attorney reviews these factors with you before anything is filed, but the following is a starting point.

LLC

A limited liability company, or LLC, is the most common entity for New York small businesses. It separates your personal assets from the business’s debts and lawsuits, so your home, car, and personal savings are generally protected if the business runs into trouble. LLCs are simpler to run than a corporation, ownership can be structured to fit your situation, and profits typically pass through to your personal tax return rather than being taxed separately. For a full walkthrough, read our guide on what an LLC is and how it works.

Go to LLC formation

PLLC

Licensed professionals, including doctors, dentists, therapists, architects, engineers, and accountants, generally cannot use a standard LLC. New York requires them to form a professional limited liability company (PLLC) instead. A PLLC gives you the same liability protection and pass-through tax treatment as an LLC, but every owner must hold the required professional license, and the formation must be approved by your licensing board before the state will accept it.

Go to PLLC formation

Corporation

A corporation is owned by shareholders, managed by a board of directors, and follows more formal requirements than an LLC, such as adopting bylaws and holding regular meetings. Corporations are often the right choice for a business that plans to raise money from outside investors or issue stock to employees. A standard corporation is taxed as a C corporation, meaning the company pays corporate tax on its profits and shareholders pay tax again on dividends. Many smaller corporations instead elect S corporation tax treatment with the IRS, which lets profits pass through to the owners’ personal returns and avoids that double taxation, provided the company meets the eligibility rules.

Go to corporation formation

Sole proprietorship and partnership

A sole proprietorship is the default status of a one-owner business that has not filed anything to become a separate legal entity. It requires no state filing to create, but it also provides no separation between you and the business. If the business is sued or cannot pay its debts, your personal assets are exposed. A general partnership works the same way for two or more owners, with each partner personally liable for the business’s obligations, including debts run up by another partner. Many founders start this way by default and later form an LLC once the business has real assets or risk to protect.

How forming a business in New York works

Once you and your attorney settle on an entity type, formation follows a consistent path, with a few steps specific to New York.

Name your business and file the formation document

Your business name has to be available and follow New York’s naming rules for the entity type you are forming. For an LLC or PLLC, we file Articles of Organization with the New York Department of State. For a corporation, we file a Certificate of Incorporation. Once the state accepts the filing, your business legally exists as a separate entity.

Satisfy the LLC publication requirement, if it applies

New York requires a newly formed LLC or PLLC to publish notice of its formation in two newspapers, one daily and one weekly, designated by the county clerk in the county where the business is located, for six consecutive weeks. After publication, you file a Certificate of Publication with the state. This requirement does not apply to a corporation. Our flat fee includes handling publication for LLC and PLLC formations, so it gets done correctly and your entity stays in good standing.

Put your governing documents in place

An LLC or PLLC needs a written operating agreement, which New York law requires and which sets out ownership percentages, decision-making authority, how profits are distributed, and what happens if an owner leaves. A corporation needs bylaws and initial resolutions covering the board, officers, and stock issuance. We prepare governing documents tailored to your business, not a generic template.

Get your EIN

Most businesses need an Employer Identification Number (EIN) from the IRS to open a business bank account, hire employees, and file taxes. We obtain your EIN as part of the formation, and if you are considering S corporation tax treatment, your attorney can prepare and file that election with the IRS at the same time.

After you form: staying compliant

New York LLCs and PLLCs must file a biennial statement with the Department of State to stay in good standing, and corporations have their own ongoing filing and formality requirements. As the business grows, most founders also need contracts with customers or vendors, agreements with new partners or employees, and in some cases a trademark to protect their name or brand. Our running a business page covers the legal work that comes after formation, so your entity and your day-to-day operations stay on solid footing.