Tax issues are a major concern for any startup business in New York. To limit their tax burden, many startups choose to form their businesses as limited liability companies. However, a new company’s particular circumstances may call for a different kind of business entity, such as a sole proprietorship, a partnership or a corporation. In any case, New York business owners need to be aware of which type of legal entity is most appropriate for their situation.
Business owners with tax concerns may be interested in New York’s “Start-Up NY” program, which promises a 10-year tax break for out-of-town companies that set up shop on or in close proximity to university or college campuses. Gov. Andrew Cuomo announced the initiative this past spring, and companies that qualify won’t have to pay corporate, business or property taxes for 10 years. Those companies’ employees will also get a decade-long break from state income taxes.
To qualify for the program, businesses would have to meet the following criteria:
- The company should have some connection to the academic missions of State University of New York campuses.
- The company cannot compete with an area business already in operation, nor can the company compete with a campus program.
- The company can’t relocate to another part of the state.
Each participating SUNY campus will have its own list of locations where businesses can open up and operate. More information on the program is available in the article we’ve linked to below.
For more on business formation and planning in New York, please visit our business law pages.
Source: The Buffalo News, “UB lists 13 sites for ‘Start-Up NY’ program to attract business,” Stephen T. Watson, Dec. 10, 2013