How to start a business in New York

 

 How to start a business in New York

 

How to Start a Business in New York in 2022: The Ultimate Step-by-Step Guide

 How to start a business in New York

To start a business in New York, you must align your desires and intentions with the statutory step-by-step process of registering a business in New York.

 

There are  over 2 million small businesses in New York State , employing 4 million people. These small businesses represent 99.8% of all businesses in the state and employ more than half of the state's workforce.

 

 

 

New York offers a number of opportunities to find talent, build relationships, grow your business, try new ventures, and most importantly, make money .

 

Before listing the process of registering a business in New York, let us note some amazing facts about New York.

 

Amazing facts about New York

 

California's economy is the largest in the United States, with a Gross State Product (GSP) of $3.2 trillion in 2019.

 

NYC is home to the New York Stock Exchange (NYSE) and NASDAQ, the world's two largest exchanges by market capitalization and trade activity .

 

Discover the 12 amazing facts about New York.

 

Just over 8 million people live in New York. This means that 1 in 1 people in the United States live in cities.

More than 800 languages ​​are spoken in New York, making it the most linguistically diverse city in the world. 4 out of 10 households speak a language other than English.

Oysters were so popular in 19th century New York that the shells were used to pave Pearl Street. They were also used for lime for the masonry of Trinity Church.

France offered the Statue of Liberty to the United States in 1886 for its centennial celebration. The statue was shipped in 350 pieces in 214 crates and took 4 months to assemble at its current home on Ellis Island.

The Federal Reserve Bank of New York has the largest storage of gold in the world. The vault is 80 feet below street level and contains $90 billion in gold.

The New York Public Library has over 50 million books and other items and is the nation's second largest library system after the Library of Congress. It is also the 3rd largest library in the world.

The headquarters of the United Nations was established in New York in 1952 after World War II.

The first pizzeria in the United States opened in New York in 1895. Since the 1960s, the price of a slice of pizza has been roughly the same price as a subway ride, generating the idea of ​​the " pizza principle” among economists.

The borough of Brooklyn alone would be the fourth largest city in the United States. Queens would also rank fourth nationally.

Times Square is named after the New York Times. It was originally called Longacre Square until the Times moved there in 1904.

New York became the first capital of the United States in 1789.

More Chinese live in New York than in any other city outside of Asia. More Jews live there than in any other city outside of Israel.

Why Should I Start a Business in New York: Facts About New York

 

New York is known as the Empire State due to its wealth of resources. With a gross state product of $1.44 trillion, the state is second only to California and Texas to become the third largest economy in the United States.

 

New York City is a global hub of business and commerce. It is a center for banking and finance, retail, global trade, transportation, tourism, new media real estate , traditional media, advertising, legal services, accounting, insurance, theater, fashion , and the arts in the United States.

 

 

 

According to the  Small Business Administration  (SBA), New York State is home to 2.1 million small businesses and 4 million small business employees, representing more than 50% of the private workforce.

 

If you are considering doing business in New York, here are some reasons to register your business in New York.

 

 

 

SEE ALSO: How to Start a Business in Arizona 2022: The Ultimate Step-by-Step Guide

 

#1 Perfect environment for startups

 

With a plethora of entrepreneurs in the state, the terrain is super ripe for startups. This is so because of the sound and business-friendly system that complements the competition.

 

#2 Tax benefits

 

New York has instituted several tax benefits and incentives to help ease the burden on small business owners. START-UP NY allows new businesses to operate tax-free if they are located in or near certain universities in the state.

 

Also  New Markets Tax Credit Program  gives money to businesses and real estate developers to create jobs and foster community development in low-income neighborhoods across New York State.

 

 

 

READ ALSO: How to Start a Food Truck Business in 2022: The Ultimate Step-by-Step Guide

 

#3 Endless networking opportunities

 

Being a state full of thriving entrepreneurs, the opportunity to network among professionals is endless in New York.

 

#4 Diversified Options

 

NYC is considered a melting pot of cultures with people from all over the world living there. This diversity has long been considered one of New York City's strengths and is reflected in the diverse number of businesses that operate there.

 

Apart from being a financial center, the city is also renowned for being the epicenter of art, culture and fashion. Whether you're affiliated with the world of finance or launching a new product, New York City is the place to be.

 

#5 New York drives innovation and growth

 

At the local and state level, regulators support existing and new businesses by providing access to capital for innovation and growth projects.

 

It's not about one company, but about the ecosystem: capital, talent, suppliers and customers at your fingertips. It's what creates a win-win culture that helps us grow and helps the city and state achieve their agenda.

 

How to register a business in New York

 

To register your business in New York, there are statutory steps to follow. In a few lines to come, we will carefully walk you through the steps you need to take if you want to start your business in New York.

 

How to start a business in New York

 

Starting a business in New York requires working with state and local governments.

 

If you want to start a business in New York, here are the steps to follow:

 

#1: Decide on a business structure

 

You can choose from 3 basic business structure options.

 

A DBA  or "Doing Business As" (also known as a "fictitious business name" or FBN) is not really a separate structure, but simply a different name that an individual or partners use as a business name.

A corporation  is a separate entity whose structure includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funds. Certain professions are required to choose what is called a “professional corporation” or PC (doctors, lawyers, architects, etc.).

A LLC  or “Limited Liability Company” is a new type of business that is both a separate entity but offers very easy management (does not require directors or officers) and taxation. Has largely replaced the DBA and the corporation in popularity recently, as it provides liability protection but with far less complexity (and taxation) than a corporation.

#2: Choose a business name

 

Before moving on to choosing a business name , make sure the name matches your idea and structure. Also, make sure the name is easy to pronounce and remember.

 

Finally, before arriving at a name, research to find out if the name is available and suitable for use.

 

#3: Register the business

 

After choosing the business structure and name, the next thing to do is to register the business. You can either register your business as an LLC, Incorporation or DBA.

 

How to form an LLC in New York

 

Choose a registered agent service (optional):  In New York, the Secretary of State acts as the registered agent by default, although you can choose to use an alternative service.

File “articles of organization” with the New York Corporations Division. Note that your LLC must be published in 2 newspapers within 20 days of its formation.

Hold an organizational meeting to collect member contributions, issue membership certificates, adopt the business operating agreement, etc. (yes, even for LLCs with 1 person).

Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can elect to be taxed as an S-Corporation (or even C-Corporation).

 

TIP:  Speak to your tax advisor about this important issue because it adds complexity to your LLC that most people prefer to avoid.

How to fit in in New York

 

Choose a registered agent service (optional):  In New York, the Secretary of State acts as the registered agent by default, although you can choose to use an alternative service.

File the "articles of association" with the  New York Division of Corporations .

Optional: Corporations may elect S corporation status with the IRS by filing  IRS Form 2553 .

Hold an organizational meeting to properly organize the company, receive shareholder contributions, elect directors and officers, issue shares, adopt company articles of association, and more.

How to File a DBA in New York

 

New York requires a business to use its true legal name to conduct business – any business seeking to use a name other than its legal name must file for a DBA.

 

Verify your business name by calling the County Recorder or visiting their website (search for "YOURCOUNTY county recorder" should find it).

Obtain an  Assumed Name Certificate . Note that if you are a corporation, limited partnership, or LLC, you must obtain a  Section 130 General Business Law certificate instead.

File the forms with the county. The filing fee is $25 plus associated county fees. For corporations, the fee is $100 for each county inside New York City and $25 for each county outside of it.

#4: Get Your Federal Employer Identification Number

 

The Federal Employee Identification Number is required for corporations and LLCs and optional for database administrators.

 

However, if you are a DBA and do not get an EIN, you will be required to use your social security number on many documents. It is therefore generally recommended to obtain the EIN to avoid identity theft.

 

 

 

To obtain an EIN, you can  apply online  with the IRS or via  IRS Form SS-4 .

 

# 5: Ask for licenses

 

To register a business, you must obtain a business license from the state. Visit the  NYS Trading Assistant  to apply for the correct license or permit.

 

# 6: Determine your tax obligations

 

Whether you're starting a new business or buying an existing one, you'll need basic information about New York State tax law and regulations. The New York State  Tax Guide for New Businesses  (Publication 20) describes the procedures to follow and the forms to file with the New York State Department of Taxes and Finance (the Department of Taxation). This publication also contains valuable information for those buying an existing business or buying assets from an existing business.

 

In addition, your company must register with the tax service.

 

#7: Get insurance

 

Employer insurance obligations

 

Unemployment insurance is mandatory if you meet the liability conditions. Corporate officers and shareholders who render services to the company are employees of the company. Any compensation they receive for such services is earnings and must be reported for unemployment insurance purposes. Register with the NYS Department of Labor.

Workers' compensation insurance for accidents at work is compulsory if you have employees. Workers' compensation insurance can be obtained from the NYS Insurance Fund, a private carrier, or self-insurance approval from the New York State Workers' Compensation Board.

Worker's Compensation Disability Insurance is required if you have employees for more than 30 days in a calendar year. Disability benefit insurance can be obtained from the NYS Insurance Fund, a private carrier, or self-insurance approval from the New York State Workers' Compensation Board.

Other insurance

 

More information on health insurance can be obtained from the NYS Department of Health.

Is there start-up assistance for new businesses in New York?

 

Certainly, there are support options available for new businesses in New York.

 

Getting started

 

The  Entrepreneurship Assistance Centers program provides instruction, training, and technical assistance to people interested in starting a business or who have recently started a business.

The  NYS Small Business Development Center  offers free advice to help you start your business, training on writing a business and marketing plan, and other tips for doing business with the state. .

You can get technical and financial assistance from  Empire State Development NYS .

How to access capital and incentives

 

Complete a session of the New York Business Express  Incentive and Support Wizard  to find resources applicable to your business.

Examine the  financing programs  available from New York to help businesses.

New York offers  loan options, grants, tax credits and other incentives  through NYS Empire State Development.

How much does it cost to register a business in New York?

 

For corporations, limited partnerships, and limited liability companies, which must file with the state, the filing fee is $25, although corporations must also pay additional county-specific fees. The company's county fee is $100 for any county in New York City and $25 for any other county in New York State.

 

What type of business can I start in New York?

 

New York is full of startups creating new business models, developing new industries, and coming up with ideas that positively transform the economy.

 

Any business idea can be great and successful if it solves the core problem of a specific audience and creates value.

 

 

 

Nevertheless, here is a list of easy business ideas you can start in New York.

 

 

 

Here is the list of small business ideas for New York City:

 

#1 Delivery of cooked meals at home

 

Freshly prepared homemade food at lunchtime is a treat for working people, but time limitation does not allow them to travel long for it.

 

Offering a service where they can sign up for a weekly or monthly package online and have lunch delivered every day, just before lunch break can be a great deal in New York.

 

#2 Luxury Travel Planner and Discount Deals

 

Even though this is already a developed industry, supplementing your service with unique offerings can bring you a huge customer base. Don't just stick to overseas tours, luxury travel and international cruises, but also find the exotic places to explore nearby or across the state!

 

#3 Property Management

 

New York's wealthy have so much to think about. Sometimes they don't pay due attention to their properties and find it difficult to manage them. Find them and offer them your exclusive services!

 

#4 Specialized recruitment agency

 

Although there are already too many recruitment agencies and the presence of web portals makes it quite a saturated market, there is still a huge gap to be filled.

 

Specialist recruitment companies are very few in number as they offer their services for a minimal set of industries. Get your hands on two or three relevant industries and set up your unique presence with better added value.

 

#5 Daycare/daycare business

 

The biggest concerns of working parents are the safety and security of their children while they are away from work. Thus,  day care centers  offer them the best option. Not only does this ensure the safety of the child, but it also allows him to learn good things.

 

#6 Maid/Cleaning/Handyman Services

 

As people are so busy with their work life that there is almost no time to take care of the house.

 

So, in such circumstances, this option of maids, cleaning service and DIY jobs is convenient and affordable. Setting up such a business is easy and can turn out to be very successful in a short period of time.

 

#7 Bakery/Custom Cakes/Snack Shop

 

There are many reasons to celebrate in everyday life, snacks and cakes are an important part of all celebrations.

 

Yes, there may be dozens of others offering the same services, but if you master the skills, you can even get a bigger market share with a simple Facebook ad campaign.

 

#8 Online Florist/Flower Delivery Service

 

Since there are too many reasons to celebrate everyday events, there are too many ways to do it. A bouquet is one of the most powerful ways to express your joy on the occasion, but no one can always afford to go to a florist! This is what makes it an amazing business idea.

 

Related Post: How to Start an Online Store in 2022: The Ultimate Step-by-Step Guide

 

#9 E-commerce

 

Selling on Amazon  and eBay is a quick and efficient way to start your e-commerce business, but you need to have something awesome to sell at an amazing price to be successful in the business.

 

#1 0 Being a Webpreneur

 

If you have expertise in content, marketing, or web development, you can build your own empire in a short amount of time.

 

Whether it's a content agency, a business networking portal or a marketing platform. All you need is a product/service that appeals to a larger audience!

 

To promote your business, you can create a marketing video with the  makewebvideo.com business video maker .

 

#11 Business Broker

 

The trend towards entrepreneurship has increased the demand for buying established businesses that meet the business requirements of existing customers and more.

 

This is perfectly suited for business brokerage. Even though this area is a bit tricky and complex and requires some B2B experience, it can turn out to be very profitable for you.

 

#12 Insurance Broker

 

To meet the ever-increasing demand from the insurance industry, you can act as an agent of an insurance company and earn your share of the profits.

 

#13 Dry cleaning service

 

Like cooking and cleaning, laundry is another tedious and time-consuming task for the working class, and you'll see a large population always finding ways to avoid it as much as they can.

 

If you are considering a  laundry business plan , then consider mobile laundry pick-up and delivery services to better address laundry issues.

 

#14 Beauty salon/hairdresser

 

Depending on the locality and target audience, you can start a business that offers multiple services, or you can stick with a hair salon only!

 

#15 Mobile Automotive Workshop

 

Having a mobile auto shop in a state where there are cars will not only give you a competitive edge, it will also solve a long-standing problem.

 

A mobile workshop can provide the ideal help in all cases, including emergencies, and bring a lot of customer satisfaction and profit for the workshop.

 

Last word

 

While starting a business in New York can be an interesting experience, managing it well is always enjoyable.

 

In other words, don't just follow the detailed outline of how to register a business in New York, make sure you follow the fundamental business rules and principles that great establishments are built on.

 

References

 

ny.gov

businessexpress.ny.gov