N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-1.2

Current through Register Vol. 46, No. 36, September 4, 2024

Section 1-1.2 - Corporation

Tax Law, sections 208(1), 209(2-a)

(a) The term "corporation" means an entity created as such under the laws of the United States, any state, territory or possession thereof, the District of Columbia, or any foreign country, or any political subdivision of any of the foregoing, that provides a medium for the conducting of business and the sharing of its gains. An entity conducted as a corporation is deemed to be a corporation. The term "corporation" includes:

(1) a domestic international sales corporation (DISC), as defined in IRC section 992(a);

(2) a limited liability company or other business entity classified as a corporation for Federal income tax purposes, except where otherwise provided; and

(3)

(i) an association, within the meaning of IRC section 7701(a)(3), a joint stock company or association, a publicly traded partnership treated as a corporation pursuant to I R C section 7704 and any business conducted by a trustee or trustees wherein interest or ownership is evidenced by certificate or other written instrument.

(ii) The terms" joint stock company" and "association" include every unincorporated joint stock association, joint stock company or enterprise having written articles of association and capital stock divided into shares. The term "association" includes a joint stock association.

(iii) A business conducted by a trustee or trustees in which interest or ownership is evidenced by certificate or other written instrument includes, but is not limited to, an association commonly referred to as a business trust or Massachusetts trust. In determining whether a trustee or trustees are conducting a business, the form of the agreement is of significance but is not controlling. The actual activities of the trustee or trustees, not their purposes and powers, will be regarded as decisive factors in determining whether a trust is subject to tax under article 9-A. The mere investment of funds and the collection of income therefrom, with incidental replacement of securities and reinvestment of funds, does not constitute the conduct of a business in the case of a business conducted by a trustee or trustees.

(b) There are generally three types of corporations - domestic corporations, foreign corporations, and alien corporations.

(1) The term "domestic corporation" means a corporation incorporated by or under the laws of the state of New York.

(2) The term "foreign corporation" means a corporation that is not a domestic corporation.

(3) The term "alien corporation" means a corporation organized under the laws of a country, or any political subdivision thereof, other than the United States, or organized under the laws of a possession, territory, or commonwealth of the United States. An alien corporation is also considered a foreign corporation.

(c) Unless otherwise specified, whenever the term "corporation" is used in this Subchapter, it can refer to a taxpayer or a non-taxpayer.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-1.2

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023