How to Start Your Own Business in New York State
According to the U.S. Small Business Administration, nearly 80 percent of new businesses fail before their fifth year of operation. Though these are scary statistics, putting together a solid business plan, marketing strategy and adequate financing increase your chances of becoming a successful entrepreneur. If you are trying to start your own business in New York state, there are several nonprofit and government resources that provide valuable information and financial resources to aid you throughout the start-up process.
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Things You'll Need
- Loans
- Business plan
- Employer Identification Number (EIN)
- New York business license/permit (depending on business structure)
- Form 1-9 (if hiring employees)
Instructions
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Start-up Process for New York Businesses
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Set up an appointment with the New York State Small Business Development Center (SBDC) to get free counseling on what resources you need to start your business. Enroll in a SBDC training course to learn about subjects such as economics, entrepreneurship, media management and accounting. The SBDC also offers advice on creating business plans, packaging loans, entering international markets and managing employees.
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2
Research New York zoning laws if you plan to open a physical location for your business. Visit the city and county government websites in New York to find out what taxes, fees and documentation are required to run a commercial business within the city's limits.
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3
Raise capital for your new business by seeking financial assistance from the New York State Banking Department (NYSBD). There are also nonprofits, credit unions and public funds listed on the NYSBD website that provide financing to small businesses in New York. Some of these include the New York Community Investment Company, IDA Financing and the Revolving Loan Fund (see Resources).
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Decide whether to set up your business as a sole proprietorship, corporation or partnership. To register a business name for a sole proprietorship or partnership, submit a business certificate with the County Clerk's Office that is located in the same county as the location of your business. If you are starting a corporation, limited partnership, LLC or LLP, it must be registered with the New York Department of State (NYDS) (see Resources).
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Register your business for New York state taxes. As a new business owner, the New York Department of State requires some new businesses to pay taxes related to sales, transportation and unemployment insurance. Depending on the structure, some organizations must obtain special licenses and permits to operate in New York. Consult the New York State Tax Guide for New Businesses on which requirements apply to your business (see Resources).
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Obtain an Employer Identification Number (EIN) before you hire employees to work in your company. Check the tax withholding requirements issued by the Internal Revenue Service and submit the documentation required for verifying an employee's eligibility to work in the U.S. Report all new hires to the New York Department of State's New Hire Reporting Program.
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Tips & Warnings
Gain experience in the industry by joining a company that is already established. Learn from seasoned experts and acquire knowledge about the customer base, competition and industry trends.
Planning is crucial to starting any business. Consider all of the expenses that you would need to cover, including rent, office supplies, computer equipment, employee wages and advertising fees.
Seek out additional financial resources by reaching out to the U.S. Small Business Administration (SBA).
Consider looking for investors who will be willing to put up financing to help you start your business. Be willing to commit up to 50 perecent of your own financing to show that you are committed to making your business a success.
Bypassing professional advice when starting a new business can result in hundreds of dollars in legal fees due to filing incorrect forms or choosing the wrong type of business entity. Pay the consultation fees up-front to avoid costly mistakes later on in the process.
Failure to report new hires to the NYSD New Hire Reporting Program can result in significant fees and penalties ranging from $20 to $450, multiplied by the number of incorrect reports filed or employees that were not reported.
References
Resources
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