How to Start a Business in New York in 7 Manageable Steps

As a state with $1.56 billion in GDP, New York becomes one of the states in the U.S. suitable for opening a business.  If you plan to do so, knowing how to start a business in New York is a must.

There are many reasons why New York is good for establishing a business. First, New York is home to 2.3 million small businesses. Thus, it offers huge opportunities to build partnerships due to its diverse and populous scape. 

New York also offers several business advantages, such as access to operational support, tax-based incentives, innovation development support, and growth support. 

No wonder that many people aim for New York to start a business. However, before establishing one, you should learn how to start a business in New York. 

The steps below show how to start a business from scratch in New York that you can do. 

How to Start a Business in New York

Opening a business in New York may be challenging because this state is the fourth most populous state in the U.S., with 19 million people living in this state. 

Therefore, the market demand and characteristics may be diverse, requiring you to stand out among the competitors in the same market. 

Here are some tips on how to start a business in New York you can take note of to establish a profitable business. 

1. Craft the Business Plan

The first step of how to start a business in New York is to craft a business plan. You have to research the market you want to get into, the demand, and the business gap. 

Additionally, you must consider the resources and the purpose of creating the business. Making a detailed business plan will give you a clear projection of how your business will profit you and how much funds you will need to grow your business. 

2. Choose a Business Structure 

After developing a business plan, the next step in how to start a business in New York is to choose a business structure. 

You can consider the entity from liability protection, taxes, financial benefits, and your business idea. 

You can go for these types of businesses that match your business goal:

• Sole Proprietorship: This type of business is for those opening a business with no partner. A sole proprietorship doesn’t need to file legal documents but still needs to apply for an Employer Identification Number (EIN) and licenses. 
• Limited Liability Company (LLC): LLC requires the owner to file articles of organization with the New York Department of State (DOS). This type of business gives liability protection which prevents the use of assets for debts.
• Partnership: You can go for partnership if you open a business with one or more people. Although you don’t need to file legal documents, a written partnership agreement must be formed.
• Corporations: A corporation is suitable for opening a legal entity that is separate from the owners. The purpose of a corporation is to operate for profit. To create one, you have to file a certificate of incorporation with the New York DOS. 

3. Choose a Location

Now, the business opening is almost ready, and the next step in how to start a business in New York is to choose a location. 

You can do research on determining the location, including the operational cost and how appropriate it is for your type of business. Additionally, paying attention to regulations applied in the town is also a must.

If you want to open a business straightforwardly, you can choose a home-based business. Yet, make sure you understand the laws and regulations there. 

4. Administer Taxes

The business structure you choose as your business type will also determine the tax you need to pay.

Administering taxes is also applied to “how to start a business online” and “how to start a small business” steps because New York taxes all kinds of businesses. 

Here are some guides to manage taxes for each type of business:

• Sole Proprietorship: This type of business is taxed based on the business income. 
• LLC: Members of LLC must pay taxes on their share of LLC income on personal tax returns and pay the annual filing fee. Also, they must file Form IT-204-LL and biennial statements. 
• Partnership: You must pay taxes based on partnership income on personal tax returns. Some partnerships are also required to pay the annual state filing fee. 
• Corporations: The shareholders of the company must pay taxes on dividends and the shareholders-employee must pay income tax.

Another tax regulation you must pay attention to is tax registration. If you are a product-selling company owner, make sure to register with the New York Department of Taxation and Finance (DTF).

Then, if you own a company with employees, you must register with the New York Department of Labor (DOL) for unemployment insurance and employer withholding tax. 

5. Open a Business Bank Account

If you are a business owner, you had better open a separate bank account for your business and personal accounts. 

Making a business bank account will make it easier to track expenses and income. Also, having a separate bank account will ensure your liability protection, especially if you open an LLC. 

6. Apply for Licenses and Permits 

Applying for licenses and permits is the next step of how to start a business in New York. As mentioned before, you have to obtain an EIN to apply for licenses. 

You must apply for administrative licenses and permits for health and safety, environment, building and construction, and specific industries or services licenses. 

You can also apply for professional and occupational licenses if you work in a certain field because the line between jobs and professions is narrowly defined by the state.

7. Get a Business Insurance

Last but not least, make sure to get business insurance for your company to protect your assets from unexpected events, including natural disasters and personal injury lawsuits.

In addition, general liability insurance can shield your company from lawsuits involving property damage or physical harm.

Those are the seven steps of how to start a business in New York. Overall, you must concept your business thoroughly and make a secured protection plan for your business. 

Equally important, to promote your business, you require the best marketing strategy. In this case, SEO is one of the most affordable ways to help you dominate the industry and establish your company as the most recognizable in New York.

By implementing SEO, you may raise your online presence and attract more prospective customers.

Additionally, by creating outstanding search-engine-optimized content, you may use relevant keywords to target potential customers, boosting website traffic and revenue.  

Try our SEO Services right now to see how we can help you use relevant keywords to improve your listings, content, and website! Let's work together!