Sec. 16-2.7. Definition of doing business

(a) The term doing business is used in a comprehensive sense and includes all activities which occupy the time or labor of people for profit. Every corporation organized for profit and carrying out any of the purposes of its organization is deemed to be doing business for purposes of the tax. In determining whether a corporation is doing business, it is immaterial whether its activities actually result in a profit or a loss.

(b) Whether a corporation is doing business in New York State is determined by the facts in each case. Consideration is given to such factors as:

(1) the nature, continuity, frequency and regularity of the activities of the corporation in New York State;

(2) the purposes for which the corporation was organized;

(3) the location of its offices and other places of business;

(4) the employment in New York State of agents, officers and employees; and

(5) the location of the actual seat of management or control of the corporation.

(c) Examples of activities of a corporation which would constitute doing business in New York State include the following:

(1) operating a branch in New York State;

(2) operating a loan production office in New York State;

(3) operating a representative office in New York State; or

(4) operating a bona fide office in New York State.

(d) A corporation will not be deemed to be doing business in New York State because of:

(1) the maintenance of cash balances with banks or trust companies in New York State;

(2) the ownership of shares of stock or securities kept in New York State in a safe deposit box, safe, vault or other receptacle rented for this purpose, or if pledged as collateral security, or if deposited in safekeeping or custody accounts with one or more banks or trust companies, or brokers who are members of a recognized securities exchange;

(3) the taking of any action by any such bank or trust company or broker, which is incidental to the rendering of safekeeping or custodian service to such corporation;

(4) the maintenance of an office in New York State by one or more officers or directors of the corporation who are not employees of the corporation if the corporation is not otherwise doing business in New York State;

(5) the keeping of books or records of a corporation in New York State, if such books or records are not kept by employees of such corporation and such corporation does not otherwise do business in New York State; or

(6) any combination of the foregoing activities.

(e) A corporation will not be deemed to be doing business in New York State if its activities in New York State are limited to such things as:

(1) the mere acquisition of one or more security interests in real or personal property located in New York State without otherwise doing business;

(2) the mere acquisition of title to property located in New York State through the foreclosure of a security interest without otherwise doing business; or

(3) the mere holding of meetings of the board of directors in New York State.