How to Open a Catering Business in New York

Great cooking talents may lead to a new catering business.

Starting a catering business in New York is no easy task, but if you love to cook and everyone raves about your culinary creations, then it may be worth the effort. You'll first need to register your business with the state and make sure you have all of the proper documentation. Then you'll need to take the necessary steps to get your catering business off the ground, which includes figuring out who your target market will be, what you plan to serve and how you plan to do it.

Instructions

Register Your New York Catering Business

1. Decide on a business name. It needs to be something that not only potential clients will remember but that also will convey the services provided. You will need to determine the type of business entity you need, such as corporation, partnership, sole proprietorship or LLC.

2. Search the New York State Division of Corporations Business Entity Database to see if the name you desire for your business is available. Your business name must be distinguishable from other business names already registered, or the Division of Corporations may reject your application.

3. Apply for an Employer Identification Number (EIN) from the Internal Revenue Service. Even if you don't plan to have employees yet, this number will keep you from having to use your own social security number when registering your business, opening a business checking account or filing taxes for the business.

4. Register your business entity with the New York Division of Corporations. The References link below will give you access to the appropriate forms.

5. Request a Certificate of Authority from the New Your State Department of Taxation and Finance. The food and beverages you sell to customers are subject to state sales tax, and you need the Certificate of Authority to charge that to them.

6. Make sure you have all of the appropriate permits and licenses necessary for your catering business, including a Permit to Operate a Food Service Establishment. You can access online applications through the New York State Online Permit Assistance and Licensing (OPAL), available in the Resource section.

Get Your Catering Business Up and Running

1. Develop a business plan. Although this is a time-consuming process, this will help you to fully comprehend your business and the goals you have for the present and future. You also need a business plan when requesting financial assistance of any kind.

2. Figure out where you're going to prepare your culinary creations. While the kitchen in your home may be the least expensive alternative, as your business becomes more successful, that space will likely become insufficient. Consider renting a commercial kitchen space (partner up with other catering businesses to save money) or asking a restaurant to let you use their kitchen in the off hours for a fee.

3. Put together a menu of the food items you're willing and able to offer customers, including main entrees, side dishes and desserts. Determine the prices for each dish by figuring the cost of ingredients, preparation time, the number of guests and factoring in a bit of profit.

4. Look into financial assistance, if necessary. According to Entrepreneur Magazine, the start-up costs for a catering business are between $10,000 and $50,000. If you're savings account isn't there, then you may need to obtain a small business loan, look for investors or apply for grants to help you. The Small Business Administration can help you get started.

5. Purchase the equipment you will need to get started. This will likely include a delivery vehicle, dishes, silverware, cooking utensils and linens, depending on the scope of services you provide. You will also likely need a computer (to help you stay organized), a business telephone line and Internet access to communicate with clients.

6. Promote your business through various media outlets. Advertise in the phone book or local publications. Have a booth in a wedding tradeshow so that brides know you're available (be sure to bring samples). Put up fliers and leave business cards everywhere you can. Contact venues to ask for a recommendation when someone books that location.

References

• New York State Division of Corporations: Business Corporation Filings
• New York State Department of Taxation and Finance: Selling products or services
• Entrepreneur Magazine: Business Idea Center -- Catering
• FabJob.com: Become a Caterer or Personal Chef

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