Start a New York Business: 12 Steps to Form LLCs, Corporations, and DBAs

Learn how to start a New York business yourself, or contact MyCompanyWorks to file paperwork for you. Tens of thousands of startups have depended on us to start and manage their businesses all in one place.

New York Business Facts and Environment

New York Business Facts

New York’s economy is the third-largest in the country, with a gross state product of $1.44 trillion. Only California and Texas outrank the Empire State. If it were a country, it would rate as the 12th or 13th largest economy in the world. New York is home to millions of small businesses and there is a large talent pool living in and around the area.

One of the world’s largest centers for finance, NYC and is home to the New York Stock Exchange and NASDAQ. The greater Manhattan area is the US’s leading center of banking, finance, media, and telecommunication.

New York Business Statistics

New York State is home to 2.1 million small businesses, many of them being women-owned, making up 99% of the state’s business population. They employ 4.4 million employees, approximately 50% of New York’s working population. New York is home to more Fortune 500 companies than any other state.

Major Companies in New York

JPMorgan Chase, Citi, Pfizer, Philip Morris International, and Alcoa are just a handful of large corporations in the Empire State.

New York Startup Environment

Home to a diverse population, a massive collection of major corporations, a tight-knit business community, and an immense amount of startup capital, New York’s startup community is arguably one of the best in the country. It’s a particularly valuable location for anyone looking to start a business that’s involved in financial services, media, or communication. One note of caution, though – New York is known for its fast-paced business environment.

There are other states that are more tax-friendly toward startups, but New York has developed incentive programs to give small businesses a boost in a competitive business landscape. Small businesses can even operate tax-free for 10 years if they are near certain university and college campuses. New markets in low-income areas can also benefit from the New Markets Tax Credit Program.

Step 1: LLC, Corporation, or DBA – Choose the Entity Type

The most common business formations for small businesses are either DBA, Corporation or LLC. Click here to learn more about business entities.

• New York LLC: the Limited Liability Company, or LLC for short, is popular with entrepreneurs because it’s easy and flexible to manage. There’s very little paperwork with running an LLC and taxes are reported in individual owner tax returns. The LLC business type has outpaced the DBA and Corporation structures since it provides liability protection and is simpler to manage than a traditional Corporation. LLCs are treated as separate entities from their owners.
• New York Corporation: the Corporation is formed as a separate entity, which means it provides liability protection to its owners. Corporations are owned and managed by shareholders, directors, and officers. They are typically more complex than an LLC, but they’re a better choice for larger businesses. Some professions are required to register as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• A DBA or “Doing Business As” (Assumed Name in NY): may be called “Fictitious Business Name”, “Assumed Business Name”, “Trade Name”, or something similar. A DBA is not a separate entity. Individuals apply for DBAs to separate business and personal matters, but there’s no liability protection or prevention against identity theft. There are cases when a DBA makes sense, like when an LLC is running multiple companies under one business. If you don’t have an LLC or Corporation, we recommend applying for a federal tax ID (employer ID number), even if you’re not going to have employees. Using a federal tax ID number instead of your social security number will reduce the risk of hackers finding your personal information.

Step 2: Stand Out with a Unique Business Name

Choosing a unique name that represents your business and sets you apart from other companies is critical if you want to avoid tax and legal problems. We offer tips here to pick the best name for your business without spending a lot of money.

IMPORTANT: Companies that are doing national or international business should be very careful about picking business names. More below in the Trademark Search section.

Start by researching possible names

A great business name is catchy, easy to pronounce, and causes consumers to remember your products or services. You’ll also want to pick a name that can grow with your business, so you’re not making expensive name changes in the future. Think of words that define your business. Do you sell wheels or computer parts? Your name should tell a customer what you sell without having to think too hard about it. Including words that describe your business will help potential clients identify your business as a possible solution to their problems.

If you have friends or family who can help, you can have some fun putting together names, then trying them out on each other. Pretend to answer the phone with a greeting that includes proposed names, so you can hear what it sounds like to customers.

TIP: Find out more about business names, identity, and marketing materials here.

Scan New York State sites and the Internet

You can save a lot of money if you’re willing to do your own name search. Just enter your names into Google, Bing, or DuckDuckGo to find any obvious conflicts, especially in your state or local jurisdiction.

Search existing trademarks with the US Patent and Trademark Office (USPTO)

You don’t need a trademark attorney to search the USPTO database for potential name conflicts. If you’d rather pay a professional, you can hire a trademark company to do name research for you. You can actually save a lot of money by searching trademarks yourself through the USPTO site, search engines, and state sites.

TIP: To get the best results, try different spellings, even misspellings of your company name to find close matches. You don’t want to use a name that could be confused with other business names.

Ready to start a business in New York? MyCompanyWorks online filing system is fast, easy, and affordable. Click here to get started.

Step 3: Register Your New York Business

How to form an LLC in New York

• File LLC Articles of Organization with the New York Division of Corporations. Note that your LLC must be published in 2 newspapers within 20 days of formation.
• All LLCs – even single-member LLCs – must hold an organizational meeting to collect member contributions, issue Member Certificates, adopt the company Operating Agreement, and more.
• Optional: Choose a Registered Agent service. In New York, the Secretary of State acts as the registered agent by default, but you appoint one that you choose.
• Optional: File Form 2553 with the IRS to elect S-Corporation – or Small Business status. Even LLCs can file the form and be taxed as an S-Corporation (or even a C-Corporation).
  
  TIP: Before you file for S-Corporation status with the IRS, you should speak to a tax professional. The S-Corporation status can add complexity to your LLC, which most entrepreneurs want to avoid.

How to Incorporate in New York

• File the Corporation Articles of Incorporation with the New York Division of Corporations.
• All Corporations must hold an organizational meeting to properly organize the corporation, collect shareholder contributions, elect directors and officers, issue stock, adopt the Corporate Bylaws, and more.
• Optional: Choose a Registered Agent Service: In New York, the Secretary of State acts as the registered agent by default, but you can choose anyone who’s qualified.
• Optional: Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

How to File a Certificate of Assumed Name in New York

New York requires businesses to use true legal names to conduct business. If you want to do business under a different name, you must apply for a Certificate of Assumed Name.

• Call your County Recorder or visit their website. You can search “YOURCOUNTY county recorder” on most search engines to find contact information.
• Apply for a Certificate of Assumed Name.
  NOTE: Corporations, Limited Partnerships, and LLCs must apply for a certificate according to Section 130 of the General Business Law.
• File the forms with the County. The fee for filing is $25, plus any associated county fees. For corporations, the fee is $100 for each county within New York City and $25 for each county outside.

Ready to Start Your Business? Let MyCompanyWorks Do the Heavy Lifting

All it takes is 5-10 minutes and a few details to start forming your LLC, Corporation, or DBA. Just complete our online order form and we’ll take care of the paperwork so you can work on more important things.

• New York filing services for LLCs and Corporations is fast, easy, and affordable
• Read reviews from verified customers and learn about our 100% Satisfaction Guarantee
• Browse our FAQs, blog, or contact our support team if you have any other questions

Step 4: Apply for a Federal Tax ID (Optional for Assumed Names)

All employers are required to obtain a federal tax ID, also called an Employer ID Number or EIN. DBAs (Assumed Names in NY) aren’t required to file for an EIN, but it’s recommended to keep business and personal matters separate. You EIN is like a social security number for your business. If you don’t have one, you’ll have to use your personal social security number on business legal and tax documents. Using an EIN can help prevent identity theft. To apply for your EIN, apply online with the IRS or via IRS Form SS-4. We can also apply for you with any business startup package.

NOTE: International applicants must call to apply for an EIN.

Step 5: Research and Open Accounts for Business Banking and Credit

The only way to separate business from personal finances is to open a business bank account. Even if you’re not ready for credit right away, using business credit cards is how you begin to build your company’s credit profile (if you’re an LLC or Corporation). When you’re ready, you’ll be able to qualify for financing and lines of credit.

If you don’t know of a local business bank or credit union, you can ask your personal bank if they have any business banking solutions. You can also find business banks by searching online. Common documents that banks require to open accounts are below:

• Filed articles of organization or incorporation
• Federal tax ID number – also called employer ID number (EIN)
• Formal business resolution authorizing the opening of a business bank account or application for credit. Must be signed by the owners, members, officers or directors, etc.

Top Business Banks in New York:

• Wells Fargo
• Chase
• Capital One
• Bank of America
• Cross River Bank
• Asia Bank
• Wilshire bank

Talk with our banking partners for help with business banking and credit solutions.

Step 6: Set up Accounting and Filing Systems

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Review our list of Accountants, Accounting Software and Bookkeepers in our Vendor Network.

Step 7: Obtain Licenses and Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.

Step 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Review our list of recommended Payroll Providers in our Vendor Network.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

Click here to view our list of insurance providers in our Vendor Network.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. Your company needs to be able to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years (unless you change the business’ name or other information listed on the FBN) at which point you’ll need to renew it with the county.

LLC: New York LLCs and corporations must file a biennial report during their anniversary month of incorporation.

Corporation: New York corporations must keep complete books and records of account at their principal place of business. These records must include minutes of all shareholder, executive, and director meetings, list the names and addresses of all shareholders, the number and shares of each, and the date each became a shareholder. LLCs and Corporations will pay a filing fee.

Franchise Taxes: New York businesses are required to pay an annual franchise tax based on several categories, outlined here.

Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing compliance tasks.

Important New York Contacts

New York State Department of State

New York State Taxation Departments

New York Department of Taxation and Finance

NYS Division of Licensing Services

New York State Labor and Employment Departments

New York Division of Employment and Workforce Solutions

New York Startup Resources

1. New York Small Business Administration

• US Small Business Administration

2. SCORE Mentors

SCORE New York

SCORE is made up of active and retired business people who volunteer their time to support startup businesses. From coaching to funding resources, finding a local SCORE mentor can save precious time and money.

• New York Business Portal
• New York Small Business Development Center
• New York Department of Labor Employer Portal
• Tax Information For New York Businesses

3. New York State Legal Statutes:

• New York Business Corporation Laws
• New York State Limited Liability Companies – the specific act that applies to New York State LLCs.
• New York State Businesses and Professions – includes regulations on topics such as business and professions codes.

4. New York State Chambers of Commerce

5. New York Angel Investors

• List of Angel Investors in New York

6. New York Business News

• New York Business Journal
• Crain’s New York Business
• NBC New York Business

7. New York State Small Business Development Center

• New York Small Business Development Center

8. New York Green Business Initiative