Steps to Starting a Business in New York State

Start a New York business correctly by first registering with the state.

New York law requires anyone providing products or services to consumers to register as a business with both the state and local governments. Doing so will protect both your business and the consumer. You must make sure the state is aware of your business, obtain licensing and permits for the type of business you operate, and apply for tax accounts so state and local governments can be sure you pay the required taxes.

Difficulty:

Moderately Challenging

Instructions

1. Decide on a name for your business. Be sure that it is easy to remember and provides information on your chosen industry, such as a landscaping business called "Bill's Landscape Designs." Then you need to search the Corporation and Business Entity Database through the New York Division of Corporations, to make sure the name you chose is distinguishable from all other registered businesses in the state.

2. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service. Federal law requires any business with employees to have an EIN, but it is also important for registration and tax purposes, even if you don't intend to have employees for your new business.

3. Register your business with the New York Division of Corporations (see References). You will need to download and fill out the appropriate documents based upon the type of business entity you choose, such as a corporation, a partnership or a limited liability company. The necessary filing fee and address for mailing are available on the forms.

4. Determine if your business will need a Certificate of Authority from the New York Tax Department. This is a requirement if your business sells products to consumers or provides certain taxable services. You can apply for the Certificate of Authority on the New York State Department of Taxation and Finance website listed in the Resources below.

5. Make sure your business location meets local zoning laws, whether you plan to operate your business out of your home or in a commercial location. Check with the zoning commission or planning department in the city in which you plan to conduct business.

6. Obtain the necessary licenses and permits for your business and its employees. The ones you need will be determined by the type of business you are setting up and a number of factors concerning that business. For example, "Bill's Landscape Design" will likely need a Nursery Dealer Registration Certificate if it resells plants bought from a nursery. The resources on the New York State Online Permit Assistance and Licensing website (see Resources below) can help you determine what permits and licenses you need.

Tips & Warnings

• After registering your business with New York, consider preparing a business plan. Having a business plan will help you to fully commit to the structure of your business and set goals for the future.

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
• Internal Revenue Service: Employer ID Numbers
• New York State Department of Taxation and Finance: Application for Certificate of Authority
• New York State Online Permit Assistance and Licensing
• Small Business Buzz: How to Write a Business Plan