Incorporating – How to become a single owner professional services corporation
How do I incorporate my professional services and what does this mean?
Incorporating means that you provide your services as a separate legal entity called the professional corporation (you may want to do this on your own but we recommend consulting with your tax advisor and maybe legal advisor who knows your situation). You can also refer to services to help you such as Amerilawyer or try to set up your corporation yourself following the instructions outlined below:
Quick and easy application option in NYS:
Visit your local Chamber of Commerce Office for information on establishing a business name and tax identification number or…
How do I know what name to use ?
Your corporate entity must comply with various requirements identifed by Office of the Professions
How do I get the name I want ?
Step 1 – Make sure the corporate name you want to use is available by checking with the NY Department of State
Step 2 – An option is to confirm the availabiltiy of the proposed name by submitting a written request to :
Department of State, Division of Corporation, One Commerce Plaza, 99 Washington Ave, Albany, NY 12231
Step 3 – Follow the directions on the NY Department of State Website
How do I set up my corporation with my corporate name?
Step 1 – Prepare your certificate of incorporation by filling out the Department of State form. You may want to keep yourself as the sole shareholder,director and officer(President and Secretary), and keep the share issuance simple, ie 100 shares at $1.00 each
Step 2- Provide the signed certificate of incorporation, together with a letter requesting acertificate of authority. Include your professional license number, return address andpayment of the fee of $90 and mail to: NY State Education Department, Division of Professional Licensing Services, Professional Corporations Unit, 89 Washington Ave, Albany, NY 12234 (Tel: 518-474-3817 ext 400 Fax: 518-473-5515).
Step 3 – A certificate of authority will be mailed to you. Mail the certificate of authority, thesigned certificate of incorporation (for a professional corporation), together with the a cover letter that says:
“Enclosed for filing is my certificate of incorporation for a Professional Corporation, together with a Certificate of Authority from the Department of Education. Please file the Certificate and return a certified copy to me at my address: .Enclosed is the filing fee of $125, the minimum tax on shares of $10 and fee for a certified copy of my certificate of incorporation of $10 for a total of $145.
Send this package to: NY Dept of State, Division of Corporations, One Commerce Plaza, 99 Washington Ave, Albany, NY 12231. Expedite handling can be requested with information on how to do this through the Department of State.
Step 4- Upon receipt of your package from the Department of State, mail the certified copy of the certificate and the filing fee of $20 to: NY State Education Department, Division of Professional Licensing Services, Professional Corporations Unit, 89 Washington Ave, Albany, NY 12234.
How do I pay my taxes?
Step 1 -The IRS has an on-line (not cost) application for a Tax Identification Number
Do I want a Subchapter S Corporation?
Many people do opt for this typ of coporation under which income and expenses (for the most part) “flow through” to you. If you want a Subchapter S you must do the following:
Step 1- File a for 2553 with the IRS within 75 dats after the corporation is formed.
Step 2-Fil a Form CT-6 with New York State.
Once formed, like any other your corporation will require ongoing maintenance that includes annual meetings, resolutions, tax filings and a corporate bank account. There are service companies that will take care of all of this for you and they will help you set up your corporation.
Amerilawyer and LegalZoom are online companies that will do this for you.
Of course please contact us with any questions.