The short answer
It depends. New York has trade-offs: Newspaper publication $400-$2,000, Income-based annual filing fee. For most founders, alternatives like Wyoming or your home state are simpler.
Three deciding questions
1. Do you live or operate in New York?
If yes, form here. Out-of-state formation while operating in New York costs double, not half.
2. What is the 5-year all-in cost?
$620 (filing + 5 × annual report + $50 registered agent + franchise minimums). This is the actual number to compare across states.
3. What are your three real requirements?
- Privacy: 3/10 (weak — members appear on public filings).
- Banking: 10/10 (top-tier — Mercury, Brex, every bank accepts).
- Cost: low 5-year total.
New York pros
- Top banking ecosystem
New York cons
- Newspaper publication $400-$2,000
- Income-based annual filing fee
- High personal income tax
Most common alternative
Wyoming for cost + privacy. Delaware for VC-backed startups. Your home state if you operate there. Run the 5-question quiz for a personalized shortlist.