How to Start a Small Business in the State of New York

The fundamental elements involved in starting a small business are fairly consistent nationally and have been standardized by the Small Business Administration (SBA). Once you have a sufficiently structured business plan, you will be ready to begin your work with the state and local governments to establish your name and presence in the state. There are a variety of specified requirements that must be met in New York State if you wish to be in compliance with state and local law.

Things You'll Need

• Business plan
• SS-4 form
• I-9 form
• Business insurance

Instructions

1. Meet all New York State licensing requirements. If you intend to start an auto dealership, a health-care-related service, an insurance company, a bail-bonding company, a restaurant/catering service, a mortgage company, or a lending/securities-related company, you will need to fulfill New York State requirements. Visit the New York State government website and the clerk of your city or township for details about requirements.

2. Obtain a "seller's permit" from the New York Department of Taxation. If you intend to provide tangible merchandise, fabrications, rentals or other particular services, you are required to file for this permit. Contact the the New York Department of Taxation for details at [phone].

3. Register your business in the state. If you intend on incorporating or starting a limited liability company, partnership, or proprietorship, you will need to do a DBA (doing business as) filing with the New York Secretary of State's Division of Corporations. You may contact this office at [phone]. Any trademarks that are related to your business must be filed with this office as well.

4. File for an employer identification number (EIN) with the IRS by filing form SS-4. If you were required to do a DBA filing in the previous step, then you will want to file your SS-4 before hiring any employees. You are also required to keep the W-4 withholding certification forms and I-9 employment eligibility verification forms for all employees on file. These forms can be obtained from the IRS and the Department of Immigration and Naturalization respectively.

5. Insure your business. Depending on the structure of your business, the insurance needs of your company will vary. Nearly all businesses will need some form of liability insurance. You will want to evaluate the needs of your company and see if it would be better to obtain an "umbrella" policy that will cover a variety of areas like theft, fire, liability, and medical and bundle them in one package. Be sure to consult with a New York State-licensed insurance agent to determine what policy will best fit your needs.

6. Seek out the New York Business Development Center if you are in need of guidance at any point during this process. This is a government agency that is designed to offer New Yorkers free business consultation to make your process simpler. Contact this office at (800) 732-SBDC.

Tips & Warnings

• Marketing is one of the most important aspects of business start-up. Be sure to spend sufficient time structuring the marketing plan for your business.

• Be sure to evaluate your potential customers and find ways to reach them in a genuine and sincere way.

References

• Official Government Business Site
• NY Secretary of State
• NY Department of Taxation

Resources

• New York Small Business Development Center