How to Start a Small Business in New York
Opening a small business begins with the idea that you can produce or provide a good or service that people want. The next step is crafting a plan that list the goals you want to achieve with your business and the steps needed to accomplish those goals. The third step is putting your theories into practice. Fortunately, starting a small business in New York does not require many formalities, besides registering your name, acquiring licenses and complying with the law you can have your business started within a few days.
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Instructions
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Choose a business type. Generally, small businesses operate as partnerships or a sole proprietor. In a partnership two or more individuals own the business equally. While business decisions need a majority vote of all the partners, a benefit of a partnership is that each partner adds their own skill or contribution to the whole. A sole proprietorship, as the name suggests, has just one owner. The benefit of a sole proprietorship is that the owner has complete authority in how the business is run.
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Choose a name for your business. If you choose a that is not your own personal name(s) you will be using a "trade name." If you decide to use a trade name, first check the Secretary of State's business name database to see if it is available. If available, you must register the name with the clerk of the county where the business is located.
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Obtain any applicable licensing that you will need to operate your business. Depending on your product or service, licenses may be mandatory. For instance, any lawyer in a firm that takes clients must be licensed with the New York State Bar Association.
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Comply with all applicable regulatory requirements. Depending on your product or service, you may be required to satisfy certain government requirements before you start your business. For example, a law firm partnership may be require to obtain malpractice insurance coverage before they may take clients. Similarly, if you intend to have employees you will need to obtain an employer identification number (EIN) from the IRS.
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Tips & Warnings
Draft a partnership agreement (for partnerships). While not required by law, a mission statement for a sole proprietor or a partnership agreement with a partnership can memorialize your business' internal rules and procedures to limit confusion if conflict arises among the partnership in regards to such events as when a partner leaves or how profits will be distributed.
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