Perform A Name Search
Youll first need to determine if your desired fictitious name is available. Perform a public inquiry at the states official website. If in the area, you can also visit the New York County courthouse basement at 60 Centre Street in Manhattan.
Out-of-state corporations and LLCs that are planning to register to do business in New York can reserve a fictitious name for up to 60 days by filing an Application for Reservation of Name. The filing fee is $20 and is made payable to the Department of State. If you need more time, you have the option to file a Request for Extension of Reservation of Name form. The extension costs an additional $20 and will let you hold the name for an extra 60 days.
How To Register A Business Name In New York
Registering a business name in New York is done when you form your business entity with the state. You must first choose your business structure, then do a business name search to ensure name availability. Afterward, you must form your entity with your business name with the state. Some businesses may also prefer to just register a DBA. Follow our step-by-step instructions and read our FAQs to get started.
How to Register a Business Name in New York
File Your Articles Of Organization
Next youll need to create and file your LLCs articles of organization. Your articles of organization document establishes your LLC as a separate legal entity. It includes basic information about your LLC, including the name of the business, the county its in, your registered agents name and address, and the filers name and address. The filer can be you, another business owner or even someone from outside the business.
In your articles of organization, youll need to indicate whether youre starting a member-managed LLC or a manager-managed LLC.
- In a member-managed LLC, all owners participate in the businesss day-to-day decisions.
- In a manager-managed LLC, owners select one or more managers to make daily decisions. If you have a single-member LLC in NYâlike, if youre a freelancer creating an LLC in NYâyou wont have to worry about this distinction.
You can use the fillable two-page document from the Department of State to complete the articles of organization, or you can download and complete it by hand . Be sure your LLCs name is exactly the same in all the required places.
Regardless of how you file your articles of organization, youll need to pay the one-time nonrefundable filing fee, which is currently $200. If you file online, youll receive your receipt and acknowledgment via email.
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How To Form An Llc In New York
- Optional: Choose a Registered Agent Service: In New York, the Secretary of State acts as the registered agent by default, though you may choose to use an alternative service.
- File the Articles of Organization with the New York Division of Corporations. Note that your LLC must be published in 2 newspapers within 20 days of formation.
- Hold an Organizational Meeting to take contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more. .
- Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can choose to be taxed as an S-Corporation .TIP: Speak to your tax advisor about this important issue because it adds complexity to your LLC most people would rather avoid.
How Do I Change My Dba In New York
To make changes to your certificate of assumed name, you must complete and submit the Certificate of Amendment of Certificate of Assumed Name form.
For most changes, visit the County Clerks office to complete an amendment form and pay a filing fee. Contact your county clerk for county-specific instructions for changing your DBA at the county level.
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How To Start An S Corp In New York
You can start an S corporation in New York by forming a limited liability company or a corporation, and then electing S corp status from the IRS when you apply for your Employer Identification Number .
An S corp is an Internal Revenue Service tax classification, not a business structure. The S corp status is used to reduce a businesss tax burden in certain circumstances.
We will explain when you should choose S corp status and the steps that are needed to start an S corp in our How to Start an S Corp in New York guide below.
EINs are free when you apply directly with the IRS.
Elect S Corp Tax StatusDuring the online EIN application, the IRS will provide a link to Form 2553, the Election By a Small Business form.
Visit our Form 2553 Instructions guide for detailed help with completing the form.
This is the form to elect S corp tax status for your LLC:
Hire a service provider like ZenBusiness to form an LLC and elect S corp status for you.
How Much Does It Cost To Get A Business License In Nyc
If your business is structured as a corporation, you will have to pay additional fees to register your business. City fees for business registration range from $100 to $120. In addition, convenience stores operating on the premises of gas stations need a $25 permit for their store itself, but they may also require additional licenses for selling tobacco, alcohol, and milk.
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Transacting Business In New York
According to New York’s LLC Act, you are required to register your foreign company with the state of New York if you are “transacting business” or “doing business” in New York. What does this mean? Well, like most states, New York’s LLC Act does not specifically define either “transacting business” or “doing business” in relation to foreign registrations.
However, state laws governing when foreign companies must collect state sales tax in their state provide some guidance on the issue. Under these laws, a business must have a physical presence inor nexus withthe state in order to be required to collect state sales tax on sales to that state’s residents. Generally speaking, physical presence and nexus are synonymous, and mean having:
- a warehouse in the state
- a store in the state
- an office in the state, or
- a sales representative in the state.
Certain exceptions may apply and the rules get more complicated with things like Internet sales. Nevertheless, in general, if you have an office, a store, a warehouse, or employees in another state, you will need to qualify your LLC as a foreign company in that state. For more details, including some possible distinctions between physical presence and nexus, check Nolo’s articles on Internet Sales Tax: A 50-State Guide to State Laws.
Complete The New York Publication Requirement
Section 206 of the New York Limited Liability Company Act mandates that new LLCs must publish a Notice of LLC Formation. The notice must be published:
in two newspapers a daily and a weekly
within 120 days of formation
in newspapers circulated in the county where the LLCs principal office will be located and
once a day and once a week for six consecutive weeks.
You must include the following information in your notice:
the name of your LLC
the date the LLC was formed
the county where your main office is located
your LLC’s street address
a statement that the Secretary of State has been designated as an agent of the LLC upon whom process against it may be served
the address where the NY Secretary of State may forward any process against the LLC
the name and address of your Registered Agent
a statement that the Registered Agent is to be the agent of the LLC upon whom process against it may be served
the purpose of the LLC, which can be a statement such as the purpose of the LLC is to engage in any lawful act or activity and
the date the LLC will dissolve. If you plan to run your LLC indefinitely, you can use the word perpetual here.
Contact the County Clerks office in the county where your business is located to ensure you choose newspapers that fulfill this requirement.
Where to File Your
Albany, NY 12231-0001
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Why Am I Obligated To Enroll In City Of New Yorks Business Express
Every time a potential business owner registers, applies for the business, pays business fees, creates a business scenario themselves online, it speeds up the wait time for business licenses for everyone. Not only that, but when you utilize all of the resources at your fingertips right at home, it limits the amount of time that you will have to spend at the City Hall, which is frequently busy.
File Your Articles Of Organization With The Nys Division Of Corporations
Once you’ve gathered all the information for your LLC, youll need to file your New York LLC Articles of Organization with the NYS Division of Corporations. This document formally creates your LLC.
Heres what is typically included:
- Your business name and address
- Details of your Registered Agent
- The county where your business is located
- Name and address of the organizer
Your Articles of Organization can be mailed, filed online via NYS Business Express or Incfile can do it on your behalf for free. The state charges a $200 filing fee for NYS LLC formation.
File by Mail:
Section 206 of the New York State Limited Liability Company Law requires that within 120 days after the effectiveness of the initial articles of organization, a limited liability company must publish in two newspapers a copy of the articles of organization or a notice related to the formation of the LLC. The newspapers must be designated by the county clerk of the county in which the office of the LLC is located, as stated in the articles of organization. After publication, the printer or publisher of each newspaper will provide you with an affidavit of publication. A Certificate of Publication, with the affidavits of publication of the newspapers attached, must be submitted to the New York Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231. The fee for filing the Certificate of Publication is $50.
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Name Your New York Llc
The very first step in starting a limited liability company in the Empire State is picking a name. More than likely, youve probably given this some thought before you decided to file an LLC. What do you want to call your business? Its a simple question, but it has big implications. While you can always change a business name in the future, its best to pick a name that will endure. Especially if youre creating a consumer-facing business, youll want to pick a name thats easy to remember and resonates with your customers.
Receive A Certificate From The State
The state will issue you a certificate that confirms the LLC formally exists after the LLC’s formation documents are filed and approved. It might take up to 7 weeks to receive your certificate.
This certificate will allow the LLC to obtain an Employer Identification Number , business licenses, and business bank account.
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How To Start A Business In New York:
There is support for new small businesses and entrepreneurship in New York. In 2016, New York lending institutions issued 417,765 loans under $100,000. The state offers many business development programs like START-UP NY, a program that offers eligible businesses the opportunity to operate tax-free for ten years when partnered with academic institutions, and the Empire State Developments Small Business Division, which offers guidance to businesses with fewer than 100 employees through a range of programs and initiatives.
Review New York State formation options.
New York State offers 4 ways of forming your business. Review these closely and pick the one that fits your business best.
Name your business.
When you have a business name in mind, you should search the name in the DOS Business Entity Database to see if it has already been registered.
You should also check the trademark database to see if the name you have in mind has been trademarked.
If you need help finding a business name, be sure to check out NameSnack’s free business name generator.
Get an Employer Identification Number.
Nearly all businesses will need to register for federal taxes by applying for an employer identification number.
Learn The Steps Required To Obtain A Business License In New York
By David M. Steingold, Contributing Author
Looking to start a small business in New York? You may need to obtain one or more state licenses or permits, or complete one or more kinds of state registration, as part of the start-up process. Here’s a quick look at some of the main informational resources available and a few of the steps you may need to take.
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Get An Employer Identification Number
The nine-digit Employer Identification Number is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.
The purpose of an EIN is to assist with the following:
- File and manage taxes at the state and federal level
- Open a business bank account.
- Hire employees.
Obtain Your Ein And Register For Taxes
Before you can start conducting business in New York, you need to register with New York’s Tax Department. Its also a good idea to familiarize yourself with your state and local tax requirements, which may differ depending on the type of business youre running. For instance, businesses that sell physical products or perform certain services need to collect a sales tax and obtain a Certificate of Authority, and businesses in New York City are also subject to the citys business income and excise taxes. You can take a look at the states Department of Taxation and Finance website to read up on your tax obligations, but wed recommend talking to a professional who can break it all down for you in simpler English.
At this point, you should also apply for an EIN with the IRS, which youll need in order to file your businesss income tax return or payroll tax return. Youll also need an EIN to open a business bank account, apply for a business credit card, hire employees, and apply for a business loan down the line. The only exception here are sole proprietorships, who can use the owners social security number in lieu of an EIN.
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When Is Filing A Dba Required In New York
A DBA is required whenever a business is operating under a name other than its legal name. In the case of a sole proprietorship, you will need a DBA if you are operating under a name other than your own personal name. Partnerships in NY must always file a DBA in all counties where they transact business.
How To Get A Dba In New York
Filing a New York DBA , also known as an assumed name, is a simple process and its done at the county level or with the New York Department of State depending on your business structure.
Learn How to Get a DBA in New York yourself. Choose your business structure to get started:
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Get Your Employer Identification Number
If you are opening a sole proprietorship and working alone, you can use your social security number. All other types of business must get an EIN from the Internal Revenue Service. There is no fee to get an EIN, and this will identify your business with the government for tax purposes.
If you are selling goods or services, you must register with the NYS Department of Taxation and Finance.
If you have employees, you will need to figure out what insurance you have to carry in order to do business. This includes workers compensation insurance, as well as insurance to protect the assets of your business. New York State requires employers to provide unemployment, workers compensation and disability benefits insurance, as well as compliance with wage reporting and tax withholding requirements. All businesses must meet state tax requirements, and liabilities and which taxes you need to register for will depend on the nature of the business.
Make sure that the area that you have identified as the physical space for your business allows your type of business to open in the area. Certain restrictions exist for businesses in various areas. In addition to zoning questions, you may want to also consider parking, sign regulations and occupational license restrictions for your particular type of business. New York City may also have its own unique regulations.
Set Up An Accounting System
Setting up an accounting system for your business is one of the most important things you can do for your company to ensure long-term success.
There is just one problem youre not a numbers person.
Just thinking about financial statements, debits and credits, and accounting software makes your head hurt.
Staying on top of finances not only keeps the business on top of tax obligations, but financial statements can be used to track and monitor trends in the business and maximize profits.
Fortunately, understanding the numbers doesnt mean getting a finance degree. Tracking a businesss financials can be done with pen and paper , spreadsheets, accounting software, or hiring a bookkeeper.
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