How to Legally Start a Small Business in New York

Certain requirements allow small business to run legally in New York.

A small business owner who rents out his location, fills the store with goods to sell and rings up sales on his new cash register often does not have everything it takes to do business legally. Local jurisdictions require certain licenses and certificates for different types of business to be legally run out of their jurisdiction. New York has specific guidelines for a small business to operate legally in the state.

Things You'll Need

• business license
• tax certificate

Instructions

1. Register for an EIN--Employer Identification Number. Corporations, partnerships and businesses who have employees must register with the US Internal Revenue Service for an Employer Identification Number. Also referred to as form SS-4 or Employer Tax ID.

2. Obtain the required New York tax identification for the business. Proper New York tax identification depends on what type goods or services the business sells, advises Business.gov. Sole proprietors--businesses owned by one person--are the most common small business set up in New York. Sole proprietors in New York report business income and expenses on New York State and federal personal income tax returns. A New York State resident uses form IT-201. A non-resident or part year resident with a small business that operates out of New York needs form IT-203.

3. Purchase a Certificate of Conducting Business as a Sole Proprietorship. As of 2010, New York small business owners can purchase the form from either a legal stationery New York store, Blumberg forms at 800-529-2978 or the Blumberg website, Blumberglegalforms.com, according to the Govenor's Office of Regulatory Reform (GORR.)

4. Complete the form and have it notarized. Once completed, the Governor's Office of Regulatory Reform requires business owners have the form notarized then filed with the county clerk in the county the business operates out of.

5. Make two copies of the notarized form. The Governor's Office of Regulatory Reform mandates that the original remain with the county clerk while one copy must remain on the business premises.

6. Open a business bank account. The second notarized copy of the Certificate of Conducting Business as a Sole Proprietorship remains with the bank the sole proprietor chooses to open a business account with.

References

• Business: New York Business Licenses and Permits
• New York State Online Permit Assistance and Licensing: Home

Resources

• Internal Revenue Service; Businesses With Employees; March 29, 2010