New York Business Plans or Private Placement Memorandum? An Introduction

(Editor’s Note – This introductory article is the first in a series of blog posts that will explore how small businesses in New York can look to grow through outside investment. While these articles are instructive in nature, we always urge that you consult an attorney before making any decisions! We here at IPG stand ready to help, so please contact us!) Everyone who goes into business believes they can succeed if they have the capital. If only you had the capital to take off.  But how do you get from point A to point B?   And how do you get your hands on that sweet investment capital that you so desperately need.  There are two tools out there that can be used to stir interest and attract investment. A business plan is a document that describes the fundamentals of your business idea and provides financial data to show

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New York S Corp vs. LLC Basics: Choosing your Corporate Entity in New York

Many of our New York law firm clients considering establishing a business entity in New York, often, are conflicted whether they should choose to establish a New York S Corporation (“S Corp”) or a New York limited liability company (“LLC”).  Choosing whether to establish as a New York S Corporation or an LLC is, often, an important decision for a New York company and its shareholders/members, thus, don’t take this choice for granted and consider the pros and cons with New York business-savvy attorney. The following may help initiate the conversation with your New York attorney.  If you are doing a deal with a non-American company or individual make sure to hire an international lawyer with experience working on transnational deals.  Additionally, these corporate forms are, generally, not available for professional corporations (i.e. law firms). NY S Corporation Basics An NY S Corporation is a Pass-Through Entity meaning that each

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Protect your NY Business From Fraud

It’s no secret that small businesses have a higher fraud rate of employees being prosecuted for fraud and being the victim of fraud than larger companies and non-business owners. That is because they are the most susceptible to attacks due to their failure to take time to implement measures and internal policies to prevent fraud. Fraud can come from any direction. A frequent source of fraud is credit card abuse – largely due to business owners failing to take the time to thoroughly review their bills and the lack of having an audit system in place.  Fraud stems from a general failure of security across the business, from inadequate cyber-security to failure to run background checks. You can increase your security and give you and your business the best chance to avoid being a victim of some of the common types of fraud and cyber-crime by following these simple tips:

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New York Small Business Taxes

Here are the basics of New York Business Taxes applicable to small businesses doing business in New York.  Please New York sole proprietorships do not pay any corporation franchise taxes or filing fees. The sole proprietor shall, only, pay state and federal personal income tax individually. New York partnerships are considered “pass-through” businesses where the income passes to individuals. New York partnerships do not pay federal or state income taxes, but are subject to state filing fees, which are calculated based on gross income. The effective maximum tax in New York is $4,500. New York limited liability companies can be classified as a partnership, a corporation or as a “disregarded” entity. New York limited liability companies that classify as a corporation pay corporation franchise tax under the same rules as traditional corporations. New York limited liability companies that classify as a partnership follow the same filing fee scheme as New

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