How to Open a Small Business in New York

The proper documentation is a requirement for starting a business in New York.

Opening a small business in any location can be a time-consuming process. However, completing the registration of your business properly can get things off to a great start. The process for starting a small business in New York is similar to most states, requiring the registration of the business entity, tax documents and licenses.

Instructions

Registering a Small Business

1. Check to see if the name you want for your business is available (see Resource section). New York state law requires the Division of Corporations to reject a name for a business that is not distinguishable from a business name that is already registered.

2. Request an Employer Identification Number (EIN) from the IRS. This number will be a requirement for nearly every document you file in starting your small business in New York.

3. Determine what type of business entity you plan to create. Most small businesses are either sole proprietorships, corporations, limited liability companies or partnerships. The only exception to registration in New York is the sole proprietorship (such as "John Smith d/b/a Smith Construction"). File the appropriate documentation with the New York Division of Corporations to register your business entity (see Reference section).

4. Obtain a Certificate of Authority from the New York State Department of Taxation and Finance in order to sell products or provide certain services through your business.

5. Choose a location for your business. Be sure that the location meets local zoning laws regarding business placement, whether you choose to have an actual business location or a home-based business.

6. Apply for any and all required licenses and permits for your business on a state and local level. The Online Permit Assistance and Licensing website (see Resource section) will help you determine what licenses your business needs and allow you to apply for them online. Click on "Choose Business Type" to get started.

7. Develop a business plan (see Resource section) to help keep you on track in the development of your business and to obtain business financing. Most lenders won't consider providing you with funds without a properly executed business plan to examine.

8. Access resources that will help you get started and stay on the right track, such as the local New York resources offered by the Small Business Administration (see Resource section).

Tips & Warnings

• New York requires the submission of a different Certificate of Incorporation for foreign and domestic businesses that provide professional services. Be sure you are filing the correct document when you register your business.

References

• New York State Division of Corporations: Business Corporation Filings
• New York State Department of Taxation and Finance: Selling products or services
• Business.gov: Starting a Business in New York

Resources

• New York State Division of Corporations: Search the Corporation & Business Entity Database
• New York State Online Permit Assistance and Licensing
• Small Business Buzz: How to Write a Business Plan
• Small Business Administration: Local Resources -- New York