How to Open a Company in New York

Opening a business anywhere can be a daunting venture---and New York ups the ante. New York's business climate is cutthroat, with high commercial property rates, intense competition, and a less-than-ideal tax situation. In fact, New York state ranks second-worst in the nation (only New Jersey is worse) on the Tax Foundation's Business Tax Climate index. It's not surprising, then, that the same number of companies open and close every year in New York. If you're committed to starting a business in the Empire State, get a good lawyer and accountant. As far as the formalities go, however, there are just a few steps you need to take to open a company in New York.

Things You'll Need

• Computer
• Printer

Instructions

1. Get the proper permits. Visit New York City's "Business Express" website to find out which permits or certificates you need for your type of business (see Resources for link). Some permits require specific training or experience, so do this as soon as possible.

2. Complete a business plan that looks at the particular tax situation for your specific location. Enlist the help of your accountant to get a realistic picture. Since New York's state and local taxes can really add up, it's important to take location into account, so you have realistic figures.

3. Form a business entity, with the help of your lawyer or accountant. Determine which type of corporation or company designation will work best for you. New York allows several business types including business corporations, not-for-profit corporations, limited liability companies, general partnerships, limited partnerships, and sole proprietorships. The type of entity you choose will determine what you do next.

4. File the proper paperwork with the state or county authorities. If your new company is a sole proprietorship or general partnership, the only thing you need to file is an assumed name certificate with your county clerk's office.

   If your company is a business corporation or not-for-profit corporation, you must complete and file a Certificate of Incorporation form with the state of New York. Get the fillable/printable form at the Division of Corporations website (see Resources). Mail it to:

   Department of State
   Division of Corporations
   One Commerce Plaza
   99 Washington Ave.
   Albany, NY 12231

   For a limited liability company, you must file your comapny's Articles of Organization and Certificate of Publication with the Department of State (same address). The Certificate of Publication proves that you have met the requirement of publishing a copy of your Articles of Organization in two different newspapers designated by the county clerk where your company was formed.

5. Get a Federal Employer Identification Number from the Internal Revenue Service if your new company will be hiring workers and is a corporation, partnership or sole proprietorship.

Tips & Warnings

• The Small Business Administration is a great place to find sample business plans (see Resources). It also provides connections with local organizations that can help you get started in your area.

References

• Small Business Administration: New York Profile
• Division of Corporations, State Records and Uniform Commercial Code: Types of Businesses Operating in New York State
• Tax Foundation: State Business Tax Climate Index Rankings, 2006 - 2010

Resources

• Small Business Administration: Manage your business from start to finish
• NYC Business Express: Welcome to the NYC Business Express!
• New York State Division of Corporations: Certificate of Incorporation
• New York State Division of Corporations: Certificate of Publication
• New York State Division of Corporations: Articles of Organization