Let say the person is not a US citizen. They recently incorporated (C-Corp or LLC) in a different state (e.g. Delaware). They're a one/two-person tech startup until forseeable future (e.g. building SaaS on the side). Are they eligible for this? (They might not be physically in US)
Start-up NY: 100% Tax-Free for 10 Years?
81–90 of 110 posts
Re: Start-up NY: 100% Tax-Free for 10 Years?
#82Earlier quoted context omitted.
New York is not synonymous with New York City. There's a whole other state outside of NYC. In fact, many of us don't even like the city.
Mind blown. I'm one of those ignorant Canadians that they constantly try to keep in the woods and deny the existence.
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 lakes. There are several cities here but many, many more pastoral small towns, much like New England. The "tall" part of NYS is home to Adirondacks region which is full of east coast sized mountains and small rustic towns, plus lots of wilderness areas. Adirondack park could actually fit Glacier, Yosemite, the Great Smoky Mountains, Yellowstone and the Grand Canyon Nationals parks all inside its borders. (Although that is a bit of a misnomer--there are towns, roads, businesses and homes technically inside the park's boundaries. Some of those parks listed have nothing but parkland inside of them.)
I should say that between Buffalo, Syracuse and Rochester, I snobbishly say that I always refer to Rochester as nowhere near as boring as Syracuse or as depressing as Buffalo.
I never even went to NYC until I was 26 and by then I had been to England several times, 8 or 9 US states and 6 or 7 other major US cities.
Editorials time: I don't like NYC. Many of the people are extremely egotistical about their city, it's loud but not in a good way, crowded, dirty as hell and there are lots of shady areas. Granted it has a lot to offer but I feel the good/bad ratio is much worse than other cities. Washington DC for example is damn near as powerful and culturally rich yet isn't anywhere as bad to look at or dangerous.
Also, don't worry, plenty of people here in Rochester think Canada is pretty much Toronto and tundra, with some weird area near New England that wants to be France again. They technically know Canada goes all the way to the west coast, but but they don't really think about it.
Re: Start-up NY: 100% Tax-Free for 10 Years?
#83The hidden fine print is that you have to affiliate with a university and support that university's mission. I wonder how loose they'll be in interpreting that support. Does "providing internships to students every summer" count, or will it need to be more substantial?
It's more substantial. Each state university school is earmarked for specific areas, and candidate companies are selected based on fit with each schools mission.
The idea is to build more integrated links with the universities. It's intended to help drive benefits similar to the successful model used by the SUNY College of Nanoscale Science and Engineering to partner with the semiconductor industry.
Note that this is really designed to benefit NY outside of NYC.
Re: Start-up NY: 100% Tax-Free for 10 Years?
#84As a startup CEO, I don't really care about income taxes. Most tech startups get acquired or fail before profitability. I care about personal capital gains tax. Give me a personal capital gains tax exemption and I'm in. I love Hudson.
Re: Start-up NY: 100% Tax-Free for 10 Years?
#85As a startup CEO, I don't really care about income taxes. Most tech startups get acquired or fail before profitability. I care about personal capital gains tax. Give me a personal capital gains tax exemption and I'm in. I love Hudson.
>As a startup CEO, I don't really care about income taxes. Most tech startups get acquired or fail before profitability. I care about personal capital gains tax. Give me a personal capital gains tax exemption and I'm in. I love Hudson.
only if you are rich enough that you don't have to pay yourself.
The rest of us have gotta pay income taxes on all the money we take out to live on until we sell out. Really, it doesn't matter if that money comes from revenue, if you are bootstrapping like I am, or from investors, if you are funded. You've gotta pay income taxes on the money you take out.
Personally? I'd rather have higher capital gains than income taxes. I've gotta pay income taxes while I'm poor; I won't have to pay capital gains until I sell the company, and at that point, hopefully, I'll be rich and have a much lower marginal value for each additional dollar.
Re: Start-up NY: 100% Tax-Free for 10 Years?
#86Don'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…
This applies to all of New York State. Taxes aren't low, but cost of living is definitely very low. There's lots of Universities upstate too (both to colocate with, and to try to hire talented grads from).
There's not just lots of universities upstate, but some really good universities (Cornell, Syracuse, RIT, Rochester, UB, Albany, RPI off the top of my head)
Re: Start-up NY: 100% Tax-Free for 10 Years?
#87Earlier quoted context omitted.
Mind blown. I'm one of those ignorant Canadians that they constantly try to keep in the woods and deny the existence.
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?
Re: Start-up NY: 100% Tax-Free for 10 Years?
#88As a New Yorker, I think this sucks. We already pay high taxes and if somebody gets a tax break that means all the rest of us will pay even more.
Better the tax breaks go to startups and new businesses than to bureaucracies and large corps.
What about your average, everyday, not new, small business? If low taxes are good all of the sudden, why not lower them for everybody?
Re: Start-up NY: 100% Tax-Free for 10 Years?
#89As a startup CEO, I don't really care about income taxes. Most tech startups get acquired or fail before profitability. I care about personal capital gains tax. Give me a personal capital gains tax exemption and I'm in. I love Hudson.
>As a startup CEO, I don't really care about income taxes. Most tech startups get acquired or fail before profitability. I care about personal capital gains tax. Give me a personal capital gains tax exemption and I'm in. I love Hudson. only if you are rich enough that you don't have to pay yourself. The rest of us have gotta pay income taxes on all the money we take out to live on until we sell out. Really, it doesn'…
I didn't get the impression that this tax break was on personal income tax, but corporate income tax. So you would only get a corporate income tax break if your company has a profit.
I was recently in the situation where I had to pay a ton of capital gains tax on an acquisition, even though my company never really had a profit, and therefore paid no corporate income tax.
But I agree. Not having to pay personal income tax would be sweet. You need to go to NH or TX for that.
Re: Start-up NY: 100% Tax-Free for 10 Years?
#90I wonder what the trade-off is. I mean, business income taxes are generally a bad idea anyway, and it's great to see a state make a move toward eliminating them, but they would also need a way to offset lost revenue. Higher taxes on 10+ year businesses?
Perhaps they plan to make it up in volume, presumably from the increase in business / economic activity that will occur from businesses starting up / moving to NY