A step-by-step guide on how to start a business in New York, with information on business formation, business licenses and permits, taxes, and more.
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Decide on the business structure
The first step in starting any business is to decide on the business structure. Will the business be a sole proprietorship, partnership, limited liability company (LLC), corporation, or some other type of entity? Each has its own advantages and disadvantages.
The most common business structures in New York are sole proprietorships, partnerships, and corporations. Limited liability companies (LLCs) are also becoming increasingly popular. Each type of business entity has its own set of advantages and disadvantages.
Sole Proprietorship: A sole proprietorship is the most basic type of business structure. It is owned and operated by one person, and there is no legal distinction between the owner and the business. The owner is solely responsible for all debts and liabilities incurred by the business.
Partnership: A partnership is a legal relationship between two or more individuals who agree to operate a business together. Partnerships can be either general partnerships or limited partnerships. In a general partnership, all partners are equally liable for the debts and liabilities of the business. In a limited partnership, there are both general partners and limited partners. The general partner is responsible for the debts and liabilities of the business, while the limited partners are only liable up to the amount of their investment in the business.
Corporation: A corporation is a legal entity that is separate from its owners. Corporations can be either for-profit or non-profit. For-profit corporations are owned by shareholders, who elect a board of directors to oversee the company’s operations. The board of directors appoints corporate officers to run the day-to-day operations of the corporation. Non-profit corporations are owned by their members, who elect a board of directors to oversee the company’s operations.
LLC: A limited liability company (LLC) is a hybrid legal entity that combines aspects of both partnerships and corporations. LLCs are owned by members, who can be either individuals or businesses. Members are not personally liable for the debts and liabilities incurred by the LLC – only the assets of the LLC itself are at risk .
File for a Certificate of Assumed Name
In New York, when you want to start a business that will operate under a name other than your own personal surname, you’ll need to file what’s called a Certificate of Assumed Name with the county clerk in the county or counties where you conduct business. The process is relatively simple and inexpensive, and once you have your certificate, you can open a business bank account and begin operating your business under the assumed name.
To file for a Certificate of Assumed Name in New York, you’ll need to complete and file a Certificate of Assumed Name form with the county clerk in the county or counties where your business will be located. The form must include the following information:
-The name of your business
-The address of your business
-The names and addresses of all owners of the business
-The date on which the assumed name will go into effect
-The duration of time for which the assumed name will be used (if it’s for a limited time)
After you’ve completed and filed the form, you’ll need to pay a filing fee. The fee is typically around $10, but it may be higher or lower depending on your county’s policy. Once you’ve paid the fee, you’ll receive your Certificate of Assumed Name, which is valid for two years from the date it’s issued. After that, you’ll need to renew it if you want to continue using an assumed name for your business.
Get a business license
Now that you’ve decided to start a business in New York, it’s time to get your business license. You can do this in person or online, but you’ll need to fill out a Business License Application and submit it to the Small Business Administration. Once you have your business license, you can start setting up your business.
Register for taxes
Before you can start your business, you need to register for taxes with the state of New York. This includes obtaining a sales tax permit and collecting and remitting sales tax on all eligible transactions. You will also need to get a federal employer identification number (EIN) from the Internal Revenue Service (IRS). Once you have registered for taxes, you will need to file quarterly tax returns and annual tax returns as required.
Open a business bank account
A business bank account helps you stay legally compliant and protected as you conduct business. When you open a business bank account, you’ll be able to easily track your earnings, expenses, and growth over time. Plus, you can use your business bank account to accept payments online and via mobile apps.
To open a business bank account in NY, you’ll need to complete the following steps:
1. Choose the right business structure for your company.
2. Obtain an Employer Identification Number (EIN) from the IRS.
3.Decide which business bank account is right for your company.
4. Gather the required documents and open your account.
Get business insurance
Starting a business is exciting, but it also comes with a lot of risks. One of the best ways to protect your new business is to get business insurance.
Business insurance can help you protect your business from financial losses due to theft, property damage, liability claims, and more. It can also help you stay in business if you have to interruption due to an unexpected event.
There are many different types of business insurance, so it’s important to talk to an insurance agent or broker about what type of coverage is right for your business.
Here are a few things to keep in mind when you’re shopping for business insurance:
-What type of coverage do you need?
-How much coverage do you need?
-What is your budget?
-What is the claims process?
-What are the exclusions and limitations?
Create a marketing plan
A marketing plan is a detailed roadmap that outlines your marketing strategy, tactics, costs and projected results over a period of time. Your business plan should include a section on your target market and your marketing mix. If you are selling products or services, you will need to create a sales plan that outlines your sales strategy and tactics.
When starting a business, it is important to understand your target market and what needs or wants your product or service can help solve. You should also be aware of any competitors in your industry and what makes your product or service unique. Creating a marketing plan will help you develop a roadmap for promoting and selling your product or service.
Your marketing mix is the combination of elements that you will use to promote your product or service. The most common elements of a marketing mix are:
-Product or service: What are you selling?
-Price: What is the cost of your product or service?
-Place: Where will you sell your product or service?
-Promotion: How will you promote your product or service?
Depending on your industry, there may be other elements to consider as well. For example, if you are in the restaurant industry, food quality and customer service may be important considerations in your marketing mix. If you are selling services, consider how you will stand out from the competition.
Your marketingplan should also include a budget outlining how much you are willing to spend on each element of the marketing mix. Be realistic when creating your budget and don’t forget to factor in the cost of any materials or equipment you will need to promote and sell your product or service.
Launch your website
Now that you have your business plan and financials in order, it’s time to launch your website. Your website is going to be one of your most important marketing tools, so it’s important to get it right. Here are some things to keep in mind as you launch your site:
-Make sure your website is responsive, meaning it will look good on both desktop and mobile devices.
-Include clear calls to action on every page, telling visitors what you want them to do (e.g. sign up for your newsletter, buy your product, etc.).
-Optimize your site for search engines (SEO). This will help people find your site when they search for keywords related to your business.
-Include social sharing buttons so visitors can easily share your content on their own social media channels.
-Make sure your contact information is easy to find and up-to-date.
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