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Start-up NY: 100% Tax-Free for 10 Years?

startup-ny.com

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Re: Start-up NY: 100% Tax-Free for 10 Years?

#101

Post by tokenrove »

cpfohl wrote: post #97
rjsamson wrote: post #79

Earlier quoted context omitted.

This program is largely focused on economic development in New York State outside of NYC. In NYC the program actually carries additional restrictions, while in Upstate NY it is easier for Universities to apply to designate space, and for companies be approved. Unlike NYC, in Upstate NY rent and required salaries are lower - it's a great place to start a company (though I may be a bit biased).

Forget rent. In Upstate New York buying is cheaper than renting. There's an idea for a starting bonus: we'll give you the downpayment on your house.

Not everyone wants to buy a house in a potentially illiquid market to work somewhere, unless they're already really committed, or lack foresight.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#102

Post by ajiang »

cpfohl wrote: post #99
skizm wrote: post #43

Can I freelance for 10 years tax free in NY if I incorporate?

Yes, if you're: at a university. Oh, and if you support the University's mission. Oh, and if the University decides to allow it. Did you read the article? It wouldn't be New York State if there weren't 173 rules and regulations that had to be met before you were eligible.

Ok, not really helpful.

You can't. The point of this program is to bring jobs to New york. You need to develop a forecast of new jobs your startup would bring to New York, which gets reported and reviewed on a regular basis. The penalties for not meeting those forecasts would be determined by your sponsoring university, which can include losing your tax free status for a year or getting kicked out of the program.

The regulations around this program aren't particularly onerous from reading the regulations document. You need to establish an understanding with a sponsoring university that your company will both benefit the community, the school's academic mission, and bring new jobs to New York. There are some reporting requirements, but that seems like a paltry ask compared to ~40-50% tax savings on profit and no income tax.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#103

Post by untog »

jrockway wrote: post #98
untog wrote: post #41

Earlier quoted context omitted.

Why? What about tourists makes New York so intolerable for you? Is your desk in Times Square?

Their collective inability to stay on the pedestrian side of the Brooklyn Bridge. One time, I saw a couple getting married in the bike lane! WTF?

Wow, I can see how that must ruin your life and make the entire city intolerable.

Brooklyn Bridge is basically second only to Times Square in terms of tourist nonsense. If you bike you really ought to be taking the Manhattan Bridge.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#104

Post by muzz »

jusben1369 wrote: post #58
crazygringo wrote: post #53

Earlier quoted context omitted.

Still, that only applies to NYS/NYC income taxes. You're still on the hook for federal income tax, which is most of your income tax. (Obviously, the state can't do anything about that!)

Right and we're comparing this to other state/s with income tax. What's CA up to now? I'm sure they're the bullseye target.

If low income taxes tipped the scales enough to make it more profitable for businesses, why haven't we seen that already with states that have zero income tax?

Re: Start-up NY: 100% Tax-Free for 10 Years?

#105

Post by javajosh »

seehafer wrote: post #28
javajosh wrote: post #27

Isn't this why people incorporate in Delaware? I don't really see the point of this.

People incorporate Delaware because of Delaware's well-codified, well-understood corporate law, that simplifies things like investments, M&A and the like. Incorporating in Delaware doesn't exempt you from NYC income tax if you do all your business in NYC.

That's embarrassing. But then again, I'm CA incorporated so I guess I never really understood the legal implications of extra-state incorporation. Thanks for clearing that up!

Re: Start-up NY: 100% Tax-Free for 10 Years?

#106

Post by avn2109 »

jrockway wrote: post #11

Don't start your startup in New York or San Francisco. Rents here are twice what they are in more reasonable parts of the country, and you get absolutely nothing in exchange except maybe a slightly-less-shallow talent pool. (Oh, and cockroaches. Lots of cockroaches.) Your employees will be paid twice as well, and your offices will be twice as nice... for free... if you locate yourself outside the expensive parts of t…

Jane Jacobs is rolling in her grave right now.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#107

Post by avn2109 »

im_a_lawyer wrote: post #73
jrockway wrote: post #11

Don't start your startup in New York or San Francisco. Rents here are twice what they are in more reasonable parts of the country, and you get absolutely nothing in exchange except maybe a slightly-less-shallow talent pool. (Oh, and cockroaches. Lots of cockroaches.) Your employees will be paid twice as well, and your offices will be twice as nice... for free... if you locate yourself outside the expensive parts of t…

NYC is much cheaper than SF and much more pleasant to live in than vast majority of cities in the US. You wouldn't convince me to live anywhere on the west. I would rather make 2x less money in NYC than live in some tract suburb with identical housing, identical shops and identical people. Been there, done that.

But in your tract house, you can watch your giant TV and devote your life to consuming the maximum possible quantity of industrial products! How can you say no!?

Re: Start-up NY: 100% Tax-Free for 10 Years?

#108

Post by avn2109 »

richardfontana wrote: post #44
tedunangst wrote: post #33

Earlier quoted context omitted.

Pedantically, the name of the city is just New York. Given the context ("or San Francisco"), I think it's clear he didn't mean to include Buffalo. "New York or California" would have meant the entire state.

New York (city) native here. Usage of "New York City" for disambiguation by Americans, at least, became increasingly common beginning as far back as the late 19th century. But by the time I was a teenager (1980s) I would say that using "New York City" was ordinarily a reverse shibboleth for not being from New York, all the more so to write "NYC". (Where "New York City" tended to be used was governmental contexts, alt…

For the jaded Manhattanite, upstate ≡ 5 blocks north of the home/office of the person who is speaking. Since I work on 120th, everything north of 125th is upstate.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#109

Post by thekevan »

ericd wrote: post #87
thekevan wrote: post #82

Earlier quoted context omitted.

I live in Rochester, NY. When I moved to Washington DC, two friends who grew up just outside of DC always said I was a "New Yawker" in a NY City accent. With DC being 4 hours from NYC, I said then they must be as well because since I grew up 7 hours drive from the city and they grew up only 4 hours drive from the city. Western NY, where I am from, is in the Finger Lakes region. It is full of rolling hills and long la…

DC? Not nearly as dangerous? As NY?

I see what you mean. DC had more dangerous areas, but you knew that and stayed away. NYC seems to have a thinner layer of danger spread around much more of the city.

Re: Start-up NY: 100% Tax-Free for 10 Years?

#110

Post by jrockway »

silverlake wrote: post #72
dworin wrote: post #36

Earlier quoted context omitted.

I have a small company in New York, and agree with all of your reasons why it's terrible. The one advantage besides talent pool (which is a big advantage!) that both New York and San Francisco have, and that's often overlooked, is proximity to customers. If you're in a business where high touch sales are important, or where you need to be able to meet regularly with your customers, it's very difficult to do remotely.…

Couldn't you put sales in NYC, but everything else in NJ/CT? Lots of banks have finally wised up to that.

BofA sort of did that when I was there; important projects at 42nd/6th, most everyone else, downtown at WFC. (They also had an "offshore" office in Chicago, where I worked. Loved that term.)

Downtown is not quite New Jersey, but Midtown certainly seems to be the hotness these days.

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