Administration: Incorporate the District Management Association (DMA)
The District Managment Association (DMA) is the formal entity through which a Business Improvement District operates. The DMA must be incorporated as a Not-for-Profit Corporation with the New York Department of State in order to claim tax exempt status with the Internal Revenue Service (IRS) and before the contract between a newly established BID and the Department of Small Business Services (SBS) can be finalized.
Incorporating Members of the DMA
The four public officials (or their appointed representatives) who sit on the BID’s Steering Committee or Board of Directors serve as the four incorporating members of the DMA:
The Mayor (represented by the Department of Small Business Services)
The Borough President
The City Council Member representing the council district in which the newly formed BID is located, or if more than one City Council Member represents a portion of the district, then appointed by the Speaker of the City Council
Filing a Certificate of Incorporation with New York State
In order to incorporate the DMA, members of the BID Steering Committee must file a Certificate of Incorporation signed by these four incorporating members with the New York Department of State. A comprehensive explanation of the filing process is available through the New York Department of State's Division of Corporations.
Before obtaining signatures of the DMA's four incorporating members, the BID Steering Committee must send the following information to SBS for review:
The completed Certificate of Incorporation form
The chosen name of the District Management Association
Names and addresses of the four incorporating members of the DMA
The boundaries of the Business Improvement District
After SBS has reviewed this information, it will be returned to the BID Steering Committee who will then be responsible for obtaining the signatures of the three non-Mayoral incorporating members of the DMA. After these representatives have signed, the SBS Commissioner will sign the Certificate of Incorporation as the Mayor’s representative.
Once all signatures have been obtained, the Certificate of Incorporation must be filed with the Secretary of State in the New York State Department of State.
Additional incorporation information is available through the New York Department of State.
Payment must be made by certified check. These fees are the responsibility of the proposed DMA or persons sponsoring the BID proposal.
Once the Certificate of Incorporation has been approved by the Secretary of State, it will be sent to the DMA accompanied by a filing receipt.
The DMA is now officially incorporated and must send a copy of the approved Certificate of Incorporation and the filing receipt to SBS.
Once the organization is created under state law, the DMA's employer identification number and appropriate federal tax classification is established.
Check the IRS website, and contact the local IRS branch office, for forms and applications. The DMA's Certified Public Accountant will also be able to help with this process (see Hire CPA).