Plan Your New York Business
Successful businesses are built through careful planning. Before committing a significant amount of money and other resources toward your business in New York, critically analyze your idea, and create a game plan. At a minimum, you should complete the following:
Name Your Business
What will you name your business? When naming a business, you’ll want to choose an available name that follows New Yorks naming rules for an LLC or corporation and resonates with your customers. Use our Business Name Generator to find the perfect brand name and website.
Before you reserve your business name, make sure your domain is available.
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Find a Business Location
Do you know where your business will be located? Whether youre opening a brick-and-mortar establishment or starting a business from home your business location informs the type of licensing and permits youll need as well as your businesss growth potential. Doing your research on New Yorks popular areas such as Queens or Brooklyn can help increase foot traffic and drive customer interest.
Conduct Market Research
Have you gotten to know your market? Before you write your business plan, conducting thorough market research is crucial. This can involve conducting surveys, doing search engine optimization research, or holding focus groups. The goal of market research is to better understand your target market and competitors in order to craft an effective business plan.
Write a Business Plan
Choose A Business Structure
Registering your New York company as a legal business entity such as an LLC, corporation, or nonprofit has two major advantages:
- Increased credibility
- Protection from personal liability in the event your business is sued
Find out which business structure is right for your new business in New York.
A sole proprietorship is an informal business structure that isnt incorporated or separated from its owner. This means that 100% of the businesss profits go to the owner however, 100% of the financial liability should the business accrue debt or get sued falls on the owner as well.
A partnership, like a sole proprietorship, is an informal unincorporated business structure but with multiple owners. Similarly, partnerships do not have liability protection that you find with a formal business structure.
A limited liability company combines the personal asset protection of a corporation with the flexibility of a partnership or sole proprietorship. Most small businesses prefer the LLC structure due to its easy maintenance and favorable tax treatment. Find out if you should start an LLC for your small business.
A corporation is a separate legal entity that is owned by its shareholders. Corporations have more formal regulations than LLCs and tend to be more attractive to investors. Most large companies like Apple fall under the corporate category.
Find out more about how to file a DBA in New York by visiting our guide.
Small Businesses Ideas For New York City In 2022
- Small Business Startup Ideas by City, Startup Ideas
New York City is full of startups, and the number is increasing every day, creating new business models, developing new industries, and reinvigorating the economy. Youre certainly well aware of some big names like Meetup, Tumblr, Foursquare, and Shutterstock. Well, whats common is that they all are New York-based!
With many startups gaining traction and worth in a short span of time, you can realize the potential of starting up a business in New York City and growing it big. However, you need to have a great idea!
Before moving on to the idea, you might also want to know about some Instant Loan apps.
Any business idea can be great and successful if its solving a specific audiences core problem and creating value. Well, hundreds of small business and startup ideas can be valuable for people in New York City. All you need to do is to pick one that you can deliver at its best.
Since New York City is very advance in terms of business infrastructure, technologies, the financial state of affairs, and media viewpoint, people have a fast-paced lifestyle. Professionals from all industries are looking for smart ways to meet their professional demands and increase overall productivity while making their personal lives more comfortable, peaceful, and full of entertainment.
You may also want to know the details about how to set up a business in New York City.
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Appoint A Registered Agent
In New York, the Secretary of State acts as the statutory agent for service of process for all New York LLCs by default. In addition, you can choose to designate a registered agent of your own.
A registered agent’s job is to accept legal documents like service of process and tax notices for your LLC.
If you choose to designate a registered agent, the Secretary of State will still act as the first point of contact for service of process.
Registered Agents and NY LLC Publication Requirements
In New York, you must publish notices that you’ve formed an LLC . These notices need to be published in a newspaper in the county of your LLC’s principal address or registered agent’s address. Some counties have high publication costs.
When you appoint a registered agent service to act as your registered agent, their address and county are used to determine where the LLC formation notice needs to be published.
We recommend using a registered agent service to keep publication costs low and to keep your address private.
Recommended: Most registered agent services offer a year of registered agent service free when you form an LLC with them.
New York Business Faqs
Obviously, New York City offers an incredibly large and diverse workforce. Other cities in the state to consider include its capital, Albany, as well as Syracuse, Buffalo, and Rochester.
New Yorks Department of Taxation and Finance can assist with determining which taxes and regulations apply to your specific business.
New York Small Business Services
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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.
Annual And Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years at which point youll need to renew it with the county.
LLC: New York LLCs and corporations must file a biennial report during their anniversary month of incorporation.
Corporation: New York corporations must keep complete books and records of account at their principal place of business. These records must include minutes of all shareholder, executive, and director meetings, list the names and addresses of all shareholders, the number and shares of each, and the date each became a shareholder. LLCs and Corporations will pay a filing fee.
Franchise Taxes: New York businesses are required to pay an annual franchise tax based on several categories, outlined here.
which can automate most or your ongoing compliance tasks.
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File Articles Of Organization
Its time to officially form your LLC by filing your Articles of Organization with the NY Secretary of State.
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You’ll need to know the following information to complete each Article:
For more detailed help with completing the form, visit our New York Articles of Organization guide.
Mail, Fax, or Deliver Your Articles of Organization:
Fax the form and payment to 474-1418 with a form or submit it to the address below:
Department of State Division of CorporationsState Records and Uniform Commercial CodeOne Commerce Plaza 99 Washington Ave.Albany, NY 12231
How long does it take to get an LLC approved? Your filing will be processed instantly if done online or in three to five business days if done via hard copy, but this can be expedited by paying a fee.
Start A Ridesharing Business
Im sure youve heard of Uber and Lyft, two of the top contenders in the ridesharing business.
If you were never quite sure of spending time driving others around, you may want to reconsider once youre in NYC.
New York City is one of the most popular places for ridesharing because most people skip having vehicles and either walk or carpool or take a taxi to their destinations.
Some people just hate driving through the city traffic!
As a New Yorker, you could make some serious cash driving others around the city.
There are some special rules for those who want to rideshare in NYC though, such as getting a Taxi & Limousine Commission license before you start.
Make sure you know all the rules, and you could be well on your way to making some money in your spare time just by driving your vehicle.
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Register Your Business And Open Financial Accounts
Using the structure and name you selected, register the business with the state of New York. Also, obtain a federal employer identification number from the IRS if youre operating as anything other than a sole prop . Youll need paperwork from both of these actions to then open a business bank account. It can be tempting to just run the business money through your existing personal accounts, but its not a good idea. This can pierce the corporate veil and wreak havoc when it comes time to do the taxes.
Check with the state of New York Division of Licensing and your local municipality to determine whether you need permits or business licenses.
Finally, learn about business insurance in New York and which type you may need. If you intend to have any employees as part of your LLC or corporation, workers compensation insurance and disability benefits insurance is required.
Examples Of Good Businesses To Start In New York
New York State has a wide variety of industries both in its most well-known city and the rest of the state. Its home to agriculture , manufacturing , mining , and service providers .
IBM, Deloitte, PepsiCo, JPMorgan Chase, and PricewaterhouseCoopers are the top businesses in the state. The best small businesses to work for include Giant Machines, Eden Health, 7Park Data, adMarketplace, Alloy, and Catalyst Software. Consider starting up a New York company that serves those businesses or competes with them. Auto repair shops, consultancies, food trucks, coffee shops, and boutiques are all good businesses to start in the state.
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Create A Name For Your New York Business
Ready to name this beautiful business brainchild of yours? Its a crowded business landscape in New York, so try to come up with a business name that is memorable, easy to understand, and not yet in use. Yes, thats a tall order in New York, but you can do it!
Think about words that are used in your industry or to describe your product/service. Maybe incorporate your own name into the business name or a play-off of your initials.
Once you have a list of possibilities, check to see which names are available with the NY Department of State. After youve checked the real world, check the online world, too! Are the website address and social media presences for your business name available?
When you land on a name that meets all these criteria, register the domain and social media presence.
Provide Remote Customer Service
Although there are many remote jobs available from top companies all over the world, many of them require you to live at least within driving distance of one of their main offices.
That way, you can go there for an interview or attend meetings when necessary.
Customer service roles often have this requirement for applicants because you may need to attend training for a few weeks before you start on your own.
Being in New York City can give you plenty of opportunities for snagging a customer service or tech support role for some of the biggest companies in the world.
Most of these roles will even hire beginners with little to no experience as long as they attend training and pass with flying colors.
Then, you can be off on your own, providing service to customers from your home office.
Youll typically need your own computer and internet service, and most companies will require a dedicated phone line for work purposes only.
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Finalize Your Ecommerce Business Plan
Resources are limited initially therefore, you must construct a business plan where you invest in the areas where you are likely to make the most profit. This is the key to steady growth.
But you should also plan for any black swan events. Sometimes unpredictable events that completely sway the market show up out of nowhere. Create a fail-safe plan so that you can keep your business afloat in a time of crisis.
Register Your New York Business
Once youve chosen your business structure, the next step is to form your business. No matter what formal business structure you choose, there are a few common steps, including:
- Naming your business
- Choosing a registered agent: an individual or business entity that accepts tax and legal documents on behalf of your business.
- Getting an Employer Identification Number : a number assigned by the Internal Revenue Service to help identify businesses for tax purposes.
- Filing formation documents.
In addition to these steps, each business structure has its own requirements that are unique to that business structure.
Here are the steps you need to take to register your business:
Form an LLC in New York
LLCs are the simplest formal business structure to form and maintain. With less paperwork than other business structures, you can easily form an LLC in six easy steps.
Start a Corporation in New York
Read our full guide on How to Start a Corporation in New York.
Form a Nonprofit in New York
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Create A Business Plan
- Develop your business idea. Every business starts as an idea. Take advantage of free Business Planning courses to translate your business idea into a business plan. REGISTER FOR BUSINESS PLANNING COURSES
- Seek out advice. Get feedback on your business idea and plan. SBS offers hands-on, intensive instruction for your business plan and connects you with a business coach.
- Understand your industry. Each industry has different demands. If you are a NYCHA resident, SBS offers specific programs to help build a food or childcare business. LEARN MORE ABOUT PROGRAMS FOR NYCHA RESIDENTS
- Write your business plan. A business plan is a living document that serves as a roadmap for your business. Here is an online guide to create your business plan. LEARN ABOUT WRITING A BUSINESS PLAN
After Filing Your New York Dba
If filing a DBA marks the beginning of your business journey, then there are a few more steps that you should take before getting started:
- Create your Businesss Website – Every business needs a website. Luckily, drag-and-drop builders like GoDaddy and Wix make the job quick and easy. Check out our Best Website Builder article to find the tool thats best for you.
- Get your Business Finances in Order – Youll need to separate your business finances from your personal ones. This is accomplished by opening a business bank account. If your business has long lead times or other cash flow irregularities, you can also look into a business credit card.
- Protect Your Business – While an LLC will help to protect your personal assets in the case of a lawsuit, your businesss assets also need protection. Having the right business insurance will ensure that youre covered if the worst happens. Most businesses start with general liability insurance as their base coverage.
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Filing A Dba In New York For Llcs Corporations And Llps
Incorporated businesses file their Certificate of Assumed Name with the New York Department of State.
The following business types are considered incorporated:
- For-profit Corporations, Nonprofit Corporations
To make changes to your Certificate of Assumed Name, you must complete and submit the Certificate of Amendment of Certificate of Assumed Name form.
Withdraw Your DBATo withdraw or cancel your Certificate of Assumed Name, you must complete and submit the Certificate of Discontinuance of Assumed Name form.