New York Repeals Organizational Tax on Corporations

Effective January 1, 2015, New York will no longer collect a tax on shares of newly formed corporations. Additionally, the state will no longer collect a tax when filing an amendment to the Articles to increase or to change the number of shares. You can read the brief notification on the state’s website.

This change was announced December 18th, and takes effect in the New Year. The Department of State did not announce the reason for eliminating the tax, but it certainly makes incorporating in New York more desirable. Foreign corporations were not subject to this tax, and we don’t expect this change will have an effect on those entities.

New York has been particularly active this year in amending legislation. In July, the state announced sweeping reforms of its nonprofit law. This “Nonprofit Revitalization Act” introduced a number of changes that affect all nonprofit entities in the state. Feel free to peruse our earlier posts on this topic.

If you’re thinking about incorporating in New York, there’s no better time. Harbor Compliance’s experienced specialists will help you incorporate your business, and to stay compliant. Visit our service page to sign up!