NYC based accounting firm serving individuals and small businesses in New York
Expert NYC Business Formation Services
Form Your LLC or Corporation with Gary Mehta, CPA, EA
Starting a business in the five boroughs or the greater New York metro area is an exhilarating journey. The thrill of bringing your vision to life in one of the world’s most dynamic markets is unparalleled. However, the path from a brilliant idea to a legally sound, operational, and profitable company is paved with critical decisions and complex paperwork. This is where strategic guidance becomes your most valuable asset. Business formation also involves preparing and filing various legal forms required for official registration and compliance.
Have us incorporate your NYC small business today! Our expert business formation services are designed to help entrepreneurs like you start your LLC or corporation smoothly and efficiently. Gary Mehta, CPA, EA, is more than just an accountant; we are your strategic partner in building a strong foundation for your new venture, ensuring your business is structured for tax efficiency and long-term growth from day one.
NY Business Formation Services: Start Your Company Today! We Incorporate LLCs and Corporations.
The "Why" and "How" of Starting a Business in New York
Overview Of Common Business Structures and "Why" It Is Paramount To Choose the Right Business Entity
New York City isn't just a location; it's an ecosystem of opportunity. But to thrive here, you need more than a great product or service. You need a resilient and strategic foundation. The initial excitement of starting your Manhattan business can be sustained indefinitely by making smart, informed decisions at the outset.
Why Is Choosing the Right Business Structure So Important?
Entity structure planning is the process of selecting the ideal legal framework for your company. This decision is far from a simple box-ticking exercise. The right business entity structure can save you thousands in taxes, protect your home and savings, and make it easier to distribute profits or attract venture capitalists in the future. The wrong one can lead to unnecessary tax bills, personal financial risk, and administrative headaches.
At Gary Mehta, CPA, EA, we believe the most successful Manhattan business formations begin with a methodical plan of action. As experienced tax accountants and business advisors, we help you navigate the crucial choice between structures and avoid the common pitfalls that ensnare many new business owners. Understanding the pros and cons of each common business structure is essential for making an informed decision.
What Are My Options? A Breakdown of Common Business Structures
Understanding the key differences between various business types is essential. Each has distinct advantages and disadvantages regarding liability, taxation, and administration. The common forms of business entities include sole proprietorships, partnerships, corporations, and LLCs. There are also other structures available, such as limited partnerships, that may suit specific business needs. Some business structures, like sole proprietorships and single-member LLCs, are available to a single owner.
Sole Proprietorship: The Simplest Start
A sole proprietorship is the default structure for an individual starting a business. Sole proprietors are individuals who own and operate their business without forming a separate legal entity. It’s easy to set up with minimal paperwork. However, this simplicity comes at a high cost: there is no legal distinction between the owner and the business. This means you are personally liable for all business debts and liabilities. If the business is sued, your personal assets are at risk. For this reason, we rarely recommend it for any serious long-term venture.
Partnership: Business for Two or More
A partnership is the equivalent of a sole proprietorship for two or more owners. Partners are typically liable for the business’s debts, and in a general partnership, they can even be liable for each other’s actions. A Limited Liability Partnership (LLP) offers more protection and is common for professional services like law or accounting firms, but it still has complexities. A limited partnership (LP) is another business structure where at least one partner has limited liability protection, shielding their personal assets, while also offering pass-through taxation benefits.
Limited Liability Company (LLC): The Modern Gold Standard
The Limited Liability Company (LLC) is a hybrid business structure that has become incredibly popular for good reason. It offers the limited liability protection of a corporation while maintaining the operational flexibility and tax advantages of a partnership.
- Personal Liability Protection: An LLC is a separate legal entity from its owners (called members). This means that, generally, your personal assets are protected from business lawsuits and debts. This limited liability is a cornerstone of sound business practice.
- Pass-Through Taxation: By default, an LLC is a pass-through entity. This means the business itself doesn't pay federal income taxes. Instead, profits and losses are "passed through" to the owners' personal tax returns, avoiding the double taxation faced by C Corporations.
- Flexibility: An LLC can be managed by its members or by appointed managers. Furthermore, an LLC can elect to be taxed as an S Corporation or even a C Corporation if it's strategically advantageous, offering incredible flexibility as your business grows.
Forming a Limited Liability Company LLC in New York is a fantastic way to support your operational needs while allowing for robust growth. Gary Mehta, CPA, EA, can manage your LLC formation in Manhattan, the outer boroughs, and the entire New York metro area for a fraction of what most NYC attorneys charge.
Corporation: The Traditional Powerhouse
A corporation is the most formal corporate entity, a completely separate legal entity with its own rights and responsibilities. It can own property, enter contracts, and sue or be sued. This structure is often favored by businesses planning to seek funding from venture capitalists or eventually go public. Corporations can raise capital by issuing stock to investors, allowing for shared ownership among shareholders. Shareholders typically have voting rights, which are outlined in the corporate bylaws and determine how major company decisions are made. Another key benefit is perpetual existence, meaning the corporation continues to exist regardless of changes in ownership or management. The two main types are the S Corporation and the C Corporation.
C Corporation (C Corp)
C Corps are the default type of corporation. C Corps are subject to corporate income tax on their profits, which is separate from the taxes paid by shareholders on dividends. Its main drawback is double taxation: the corporation pays taxes on its profits, and then shareholders pay taxes again on the dividends they receive. However, it offers benefits like the ability to have unlimited shareholders of any type and more options for tax-deductible employee benefits, making it a suitable choice for larger, established smaller companies or those with complex share ownership goals.
S Corporation (S Corp)
An S Corporation (or S Corp) is a special tax election made with the Internal Revenue Service (IRS) that allows a corporation to avoid double taxation. Like an LLC, an S Corp features pass-through taxation, where profits are passed to the owners' personal income without being taxed at the corporate level first. It provides the same robust limited liability protection as a C Corp but has strict eligibility rules, such as limits on the number and type of shareholders.
LLC vs. S Corp: Which is Right for Your NY Business?
This is one of the most common questions we hear. While both offer limited liability and pass-through taxation, the key differences lie in formation formalities, ownership restrictions, and how you pay yourself. An S Corp often requires a more rigid structure with corporate officers, meetings, and minutes, but it can offer self-employment tax savings for profitable businesses.
Choosing between an LLC or Corporation isn't easy. Have us structure your business for tax efficiency. An experienced entity structure planning advisor like Gary Mehta, CPA, EA can analyze your specific situation—your industry, profit projections, and long-term goals—to recommend the structure that minimizes your federal income taxes and best supports your vision.
Choosing the right business structure is key. #businessstructure #entrepreneur #smallbiz
Our Process: A Methodical Approach to NYC Company Formation
A successful launch requires more than just filing a form with the New York Department of State.
It requires a comprehensive strategy. At Gary Mehta, CPA, EA, we simplify your startup process by handling the complexities for you.
How Our New York City CPA Firm Helps You Start Your Business
We tailor our tax planning and business formation services to your unique situation. Our goal is to ensure you not only conduct business legally but do so in the most financially intelligent way possible.
Step 1: Strategic Entity Structure Planning
This is the foundation. We don't just ask, "LLC or Corporation?" We dive deep.
- We analyze your projected profits and losses to model the tax implications of each structure.
- We discuss your plans for raising capital and bringing on partners or investors.
- We evaluate your need for personal liability protection to safeguard your family's financial future.
- We help you choose the right structure to minimize your taxes and protect your personal assets.
Step 2: Choosing and Registering Your Business Name
Your business name is your brand identity. A trade name, also known as a DBA or fictitious business name, allows your business to operate under a different name without forming a separate legal entity. We’ll help you select a legal name that is compliant with New York’s rules and check its availability with the state’s official business database. This ensures your chosen name is unique and ready for registration.
Step 3: Appointing a Registered Agent
Every incorporated entity in New York must have a registered agent—a person or entity designated to receive official legal and state correspondence. Our firm can provide a reliable registered agent service, ensuring critical documents are never missed while keeping your home address private.
Step 4: Filing the Formation Documents
Whether it's the Articles of Organization for an LLC or the Articles of Incorporation for a corporation, these documents officially create your legal entity. We prepare and file this paperwork correctly and efficiently with the New York Department of State, Division of Corporations, avoiding costly delays and rejections.
Step 5: Navigating the NY LLC Publication Requirement
A unique and often confusing state statute in New York requires newly formed LLCs to publish a notice of their formation in two designated newspapers for six consecutive weeks. This can be an expensive and time-consuming legal process. We manage this entire requirement for you, from drafting the notice to filing the affidavits of publication, ensuring your LLC remains in full compliance.
Step 6: Obtaining Your Federal Employer Identification Number (EIN)
An EIN from the Internal Revenue Service is like a Social Security number for your business. It's essential for opening a business bank account, hiring employees, and filing your business tax returns. We obtain your EIN for you as part of our service.
Step 7: Drafting Foundational Internal Documents
While not always required by the state, an LLC Operating Agreement or Corporate Bylaws are critical. These documents outline the ownership structure, financial arrangements, and management rules for your company. They are vital for preventing disputes between multiple owners and ensuring smooth operations. We can guide you on the key provisions to include.
Step 8: Ongoing Support and Advisory
Our relationship doesn't end once the incorporation process is complete. We provide ongoing support and advice as your business grows and changes. From setting up your accounting systems to comprehensive tax planning and CFO services, we are here to help you streamline your operations and focus on what you do best.
Simplify your startup process and let us handle the complexities of business formation for you.
Common Mistakes in New York Business Formation
Avoid Common and Expensive Pitfalls in LLC formation by working with Gary Mehta, CPA, EA
Starting a new business in New York is an exciting venture, but even the most promising companies can stumble if they overlook critical details during the formation process. Understanding the nuances of different business structures—such as limited liability companies (LLCs), S corporations, and C corporations—is essential for protecting your personal assets and ensuring your business thrives.
One of the most frequent missteps is failing to properly register your business as a separate legal entity with the state. Skipping or incorrectly filing the articles of incorporation or organization can result in fines, penalties, and even the loss of limited liability protection. This exposes business owners to personal liability, putting their savings, home, and other personal assets at risk. To avoid this, it’s vital to complete all required paperwork accurately and on time, and to secure any necessary licenses and permits before you begin to conduct business.
Another common error is misunderstanding the tax implications of your chosen business structure. For example, C corporations are subject to double taxation—once at the corporate level and again on dividends paid to shareholders—while S corporations and limited liability companies benefit from pass-through taxation, where profits are only taxed on the owners’ personal tax returns. Choosing the wrong structure can lead to higher income taxes and missed tax benefits, so it’s important to consult with a tax professional who can help you select the most advantageous option for your business.
Maintaining your company’s status as a separate legal entity is also crucial. Many new business owners inadvertently blur the lines between personal and business finances, which can undermine limited liability protection. To preserve this shield, always keep detailed records, hold regular meetings if required, and ensure all contracts and transactions are executed in the business’s legal name—not your own. Failing to do so can result in courts “piercing the corporate veil,” making you personally liable for business debts and obligations.
Selecting a unique business name and registering it with the state is another step that’s often overlooked. A distinctive business name not only sets your brand apart but also helps prevent legal disputes with other companies. Additionally, every business must appoint a registered agent to receive official documents and legal notices—missing this requirement can lead to missed deadlines and compliance issues.
Finally, staying on top of ongoing filing requirements is essential for all business structures. This includes submitting annual or biennial reports, paying state and federal income taxes, and renewing any necessary licenses or permits. Neglecting these obligations can result in costly penalties or even the involuntary dissolution of your business.
By steering clear of these common mistakes, you can safeguard your personal assets, maintain your limited liability, and set your business up for long-term success. Partnering with an experienced CPA or business advisor ensures you meet all filing requirements, choose the right business structure, and remain compliant with New York’s complex regulations—so you can focus on growing your company with confidence.
Let us register your New York LLC or Corporation with our NYC business incorporation services.
Working with Gary Mehta, CPA, EA for Your NY Small Business
More on Benefits of Choosing Gary Mehta, CPA, EA for Starting your NY Small Business
Why are we the go-to solution for New York LLC formation and corporate structuring? Because we combine over 15 years of deep accounting expertise with a dedicated focus on the success of our clients.
- Tax-Centric Approach: Unlike online services or even many attorneys, our primary focus is on your financial health. We structure your business to take advantage of all available tax benefits and avoid common tax pitfalls.
- Experienced Professionals: Our team of experienced accountants and business advisors is dedicated to helping you achieve your business goals. We've helped hundreds of businesses succeed in Manhattan and beyond.
- Comprehensive Services: We offer a wide range of services to meet your needs, from business formation and bookkeeping to advanced tax planning and virtual CFO services. We grow with you.
- Cost-Effective: Our services cost substantially less than what most NYC attorneys charge for business formation, providing you with superior, tax-focused value.
- Peace of Mind: Let us register your New York LLC or Corporation with our NYC business incorporation services. Simplify your startup process and let us handle the complexities while you focus on building your dream.
Business Formation and Accounting Services Across New York
We are proud to provide expert accounting and company formation NY services across the five boroughs of New York City and the surrounding metro areas.
Manhattan
We serve all of Manhattan, including Alphabet City, Battery Park, Chelsea, Chinatown, East Harlem, East Village, Financial District, Flatiron, Greenwich Village, Hamilton Heights, Inwood, Kips Bay, Little Italy, Lower East Side, Midtown Manhattan, Lower Manhattan, Tribeca, Hudson Yards, and more!
Brooklyn
Our reach extends throughout Brooklyn, including Greenpoint, Williamsburg, Clinton-Hill, Bed-Stuy, Downtown Brooklyn, Fort Greene, Brooklyn Heights, Dumbo, Cobble Hill, Boerum Hill, Gowanus, Park Slope, Red Hook, Greenwood Heights, Sunset Park, Bay Ridge, Dyker Heights, and more!
Queens
We assist businesses in Queens, covering Ditmars-Steinway, Astoria, Hunter's Point, LIC, Sunnyside, College Point, Flushing, Fresh Meadows, Auburndale, Floral Park, Hollis, Richmond Hill, and more!
Staten Island
We provide services in Staten Island neighborhoods such as New Dorp North, Tottenville, Clifton, Prince's Bay, and more!
The Bronx
Our services are available in The Bronx, including areas like Pelham Gardens, Morris Park, and more!
NYC Metro Area
We also serve the greater NYC metro area, including Yonkers, Upstate New York, and Connecticut clients looking to transact business in New York.
Choose Gary Mehta, CPA, EA for Starting your NY Small Business
Business formation services across new york
We provide accounting and business formation services across NYC
Areas we serve.
Manhattan
Alphabet City, Battery Park, Chelsea, Chinatown, East Harlem, East Village, Financial District, Flatiron, Greenwich Village, Hamilton Heights, Inwood, Kips Bay, Little Italy, Lower East Side, Midtown Manhattan, Lower Manhattan, Tribeca, Hudson Yards and more!
Brooklyn
Greenpoint, Williamsburg, Clinton-Hill, Bed-Stuy, Downtown Brooklyn, Fort Greene, Brooklyn Heights, Dumbo, Cobble Hill, Boerum Hill, Gowanus, Park Slope, Red Hook, Greenwood Heights, Sunset Park, Bay Ridge, Dyker Heights and more!
Queens
Ditmars-Steinway, Astoria, Hunter's Point, LIC, Sunnyside, College Pointe, Flushing, Fresh Meadows, Auburndale, Floral Park, Hollis, Richmond Hill and more!
Staten Island
New Dorp North, Tottenville, Clifton, Prince's Bay and more!
Bronx
Pelham Gardens, Morris Park and more!
NYC Metro
Yonkers, Upstate and Connecticut
Have Gary Mehta, CPA register your NYC small business. We form New York Businesses across the city.