Start a New York Business: 12 Steps to Form LLCs, Corporations, and DBAs
Learn how to start a New York business yourself, or contact MyCompanyWorks to file paperwork for you. Tens of thousands of startups have depended on us to start and manage their businesses all in one place.Read reviews to find out why you can trust MyCompanyWorks to start your business fast and save money doing it.
New York Business Facts and Environment
New York Business Facts New York ’ mho economy is the third-largest in the state, with a gross state product of $ 1.44 trillion. lone California and Texas outrank the Empire State. If it were a nation, it would rate as the 12th or 13th largest economy in the global. New York is home to millions of little businesses and there is a bombastic talent pool living in and around the area. One of the populace ’ s largest centers for finance, NYC and is home plate to the New York Stock Exchange and NASDAQ. The greater Manhattan area is the US ’ s leading center of banking, finance, media, and telecommunication.
New York Business Statistics New York State is base to 2.1 million belittled businesses, many of them being women-owned, making up 99 % of the submit ’ randomness business population. They employ 4.4 million employees, approximately 50 % of New York ’ s working population. New York is home to more Fortune 500 companies than any other country. Major Companies in New York JPMorgan Chase, Citi, Pfizer, Philip Morris International, and Alcoa are good a handful of large corporations in the Empire State. New York Startup Environment home to a diverse population, a massive collection of major corporations, a tight-knit commercial enterprise community, and an huge sum of inauguration capital, New York ’ second startup community is arguably one of the best in the area. It ’ s a peculiarly valuable localization for anyone looking to start a clientele that ’ randomness involved in fiscal services, media, or communication. One bill of circumspection, though – New York is known for its fast-paced business environment. There are other states that are more tax-friendly toward startups, but New York has developed bonus programs to give little businesses a boost in a competitive business landscape. small businesses can tied operate tax-exempt for 10 years if they are near certain university and college campuses. New markets in low-income areas can besides benefit from the New Markets Tax Credit Program .
Step 1: LLC, Corporation, or DBA – Choose the Entity Type
The most common clientele formations for little businesses are either DBA, Corporation or LLC. Click here to learn more about commercial enterprise entities .
- New York LLC: the Limited Liability Company, or LLC for short, is popular with entrepreneurs because it’s easy and flexible to manage. There’s very little paperwork with running an LLC and taxes are reported in individual owner tax returns. The LLC business type has outpaced the DBA and Corporation structures since it provides liability protection and is simpler to manage than a traditional Corporation. LLCs are treated as separate entities from their owners.
- New York Corporation: the Corporation is formed as a separate entity, which means it provides liability protection to its owners. Corporations are owned and managed by shareholders, directors, and officers. They are typically more complex than an LLC, but they’re a better choice for larger businesses. Some professions are required to register as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- A DBA or “Doing Business As” (Assumed Name in NY): may be called “Fictitious Business Name”, “Assumed Business Name”, “Trade Name”, or something similar. A DBA is not a separate entity. Individuals apply for DBAs to separate business and personal matters, but there’s no liability protection or prevention against identity theft. There are cases when a DBA makes sense, like when an LLC is running multiple companies under one business. If you don’t have an LLC or Corporation, we recommend applying for a federal tax ID (employer ID number), even if you’re not going to have employees. Using a federal tax ID number instead of your social security number will reduce the risk of hackers finding your personal information.
Step 2: Stand Out with a Unique Business Name
Choosing a singular identify that represents your business and sets you apart from other companies is critical if you want to avoid tax and legal problems. We offer tips here to pick the best name for your business without spending a set of money. IMPORTANT: Companies that are doing national or external business should be very careful about picking business names. More below in the Trademark Search section .
Start by researching possible names
A great business name is attention-getting, easy to pronounce, and causes consumers to remember your products or services. You ’ ll besides want to pick a mention that can grow with your business, so you ’ re not making expensive name changes in the future. Think of words that define your business. Do you sell wheels or computer parts ? Your name should tell a customer what you sell without having to think excessively hard about it. Including words that describe your business will help electric potential clients identify your business as a possible solution to their problems. If you have friends or family who can help, you can have some playfulness putting together list, then trying them out on each other. Pretend to answer the earphone with a greet that includes proposed names, so you can hear what it sounds like to customers. TIP: Find out more about business names, identity, and selling materials here .
Scan New York State sites and the Internet
You can save a draw of money if you ’ rhenium uncoerced to do your own identify search. Just enter your names into Google, Bing, or DuckDuckGo to find any obvious conflicts, specially in your country or local legal power .
Search existing trademarks with the US Patent and Trademark Office (USPTO)
You don ’ t need a hallmark lawyer to search the USPTO database for likely appoint conflicts. If you ’ vitamin d quite pay a professional, you can hire a hallmark party to do name inquiry for you. You can actually save a bunch of money by searching trademarks yourself through the USPTO site, research engines, and department of state sites.
TIP: To get the best results, try different spellings, evening misspellings of your company name to find close matches. You don ’ triiodothyronine want to use a name that could be confused with other business names .
Ready to start a business in New York? MyCompanyWorks online filing system is fast, easy, and affordable. Click here to get started.
Step 3: Register Your New York Business
How to form an LLC in New York
- File LLC 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.
- All LLCs – even single-member LLCs – must hold an organizational meeting to collect member contributions, issue Member Certificates, adopt the company Operating Agreement, and more.
- Optional: Choose a Registered Agent service. In New York, the Secretary of State acts as the registered agent by default, but you appoint one that you choose.
- Optional: File Form 2553 with the IRS to elect S-Corporation – or Small Business status. Even LLCs can file the form and be taxed as an S-Corporation (or even a C-Corporation).
TIP: Before you file for S-Corporation status with the IRS, you should speak to a tax professional. The S-Corporation status can add complexity to your LLC, which most entrepreneurs want to avoid.
How to Incorporate in New York
- File the Corporation Articles of Incorporation with the New York Division of Corporations.
- All Corporations must hold an organizational meeting to properly organize the corporation, collect shareholder contributions, elect directors and officers, issue stock, adopt the Corporate Bylaws, and more.
- Optional: Choose a Registered Agent Service: In New York, the Secretary of State acts as the registered agent by default, but you can choose anyone who’s qualified.
- Optional: Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
How to File a Certificate of Assumed Name in New York
New York requires businesses to use true legal names to conduct business. If you want to do business under a different name, you must apply for a Certificate of Assumed Name .
- Call your County Recorder or visit their website. You can search “YOURCOUNTY county recorder” on most search engines to find contact information.
- Apply for a Certificate of Assumed Name.
NOTE: Corporations, Limited Partnerships, and LLCs must apply for a certificate according to Section 130 of the General Business Law.
- File the forms with the County. The fee for filing is $25, plus any associated county fees. For corporations, the fee is $100 for each county within New York City and $25 for each county outside.
Ready to Start Your Business? Let MyCompanyWorks Do the Heavy Lifting
All it takes is 5-10 minutes and a few details to start forming your LLC, Corporation, or DBA. Just complete our on-line holy order mannequin and we ’ ll take care of the paperwork so you can work on more important things .
Step 4: Apply for a Federal Tax ID (Optional for Assumed Names)
All employers are required to obtain a federal tax ID, besides called an Employer ID Number or EIN. DBAs ( Assumed Names in NY ) aren ’ t required to file for an EIN, but it ’ south recommended to keep business and personal matters separate. You EIN is like a social security number for your business. If you don ’ t have one, you ’ ll have to use your personal social security number on business legal and tax documents. Using an EIN can help prevent identity larceny. To apply for your EIN, give on-line with the IRS or via IRS Form SS-4. We can besides apply for you with any business startup box. NOTE: International applicants must call to apply for an EIN .
Step 5: Research and Open Accounts for Business Banking and Credit
The alone way to separate business from personal finances is to open a business deposit report. even if you ’ re not cook for recognition right away, using business credit cards is how you begin to build your company ’ mho citation profile ( if you ’ re an LLC or Corporation ). When you ’ re cook, you ’ ll be able to qualify for financing and lines of recognition. If you don ’ triiodothyronine know of a local commercial enterprise bank or credit union, you can ask your personal bank if they have any business bank solutions. You can besides find business banks by searching on-line. common documents that banks require to open accounts are below :
- Filed articles of organization or incorporation
- Federal tax ID number – also called employer ID number (EIN)
- Formal business resolution authorizing the opening of a business bank account or application for credit. Must be signed by the owners, members, officers or directors, etc.
Top Business Banks in New York:
- Wells Fargo
- Capital One
- Bank of America
- Cross River Bank
- Asia Bank
- Wilshire bank
spill with our banking partners for help with commercial enterprise bank and credit rating solutions .
Step 6: Set up Accounting and Filing Systems
Setup your accountancy and Record-keeping system and learn about the taxes your new company is creditworthy for paying. company documents broadly are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, fiscal statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “ Accounting & Financial Management ” section for serve with setting up an report system and purchasing account software. Review our list of Accountants, Accounting Software and Bookkeepers in our Vendor Network .
Step 7: Obtain Licenses and Permits
now that you ’ ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. typically this besides involves registering for state of matter taxes and permits ( the city may require them as part of the business licensing process ).
TIP: We work with a caller that can obtain and prepare business licenses and permits for you. Click here to learn more .
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance ( or both ). View our “ Employees & Payroll ” section for aid with hiring employees and processing payroll. Review our tilt of recommend Payroll Providers in our Vendor Network .
Step 9: Obtain Business Insurance
There are many types of policy for businesses but they are normally packaged as “ General Business Insurance ” or a “ Business Owner ’ randomness Policy ”. This can cover everything from product liability to ship’s company vehicles. A decent policy can run american samoa little as $ 300/year and offers a great extra level of protection. Click here to view our list of insurance providers in our Vendor Network .
Step 10: Systemize and Organize
Prepare the business as if person needed to take it over and run it for you. Your company needs to be able to process orders, give bills, pay employees, give taxes, maintain your permits, etc. Basically, try to make the operational view of the clientele as automated and efficient as possible so you can concentrate on growing your business. View our “ Manage Your Company ” section for help with systematize and automating your business .
Step 11: Branding and Marketing
now that you ’ ve set-up the company for success, you need to get the password out. Create a market plan for your products and services that targets your ideal customer. View our “ Marketing & Sales ” section for serve for more information .
Step 12: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years ( unless you change the business ’ name or early information listed on the FBN ) at which point you ’ ll necessitate to renew it with the county. LLC: New York LLCs and corporations must file a biennial report during their anniversary month of internalization. Corporation: New York corporations must keep complete books and records of score at their principal place of business. These records must include minutes of all stockholder, executive, and director meetings, list the names and addresses of all shareholders, the count and shares of each, and the date each became a stockholder. 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. Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing complaisance tasks. New York State Department of State New York State Taxation Departments New York Department of Taxation and Finance NYS Division of Licensing Services New York State Labor and Employment Departments New York Division of Employment and Workforce Solutions New York Startup Resources 1. New York Small Business Administration 2. SCORE Mentors SCORE New York score is made up of active and go to bed business people who volunteer their time to support startup businesses. From coaching to fund resources, finding a local SCORE mentor can save valued clock and money. 3. New York State Legal Statutes: 4. New York State Chambers of Commerce 5. New York Angel Investors
6. New York Business News 7. New York State Small Business Development Center 8. New York Green Business Initiative