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 with New York Department of State.
  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

All New York businesses must keep official accounting records. You’ll also have to file annual reports, tax returns, and pay fees for licenses and permits on a recurring basis. You can save time and prevent headaches by setting up accounting software and a filing system before business picks up. Learn more about tax responsibilities from our tax guide.

Most business records must be retained for three years. This includes lists of owners and addresses, copies of company formation documents, financial statements, annual reports, amendments, or changes to the company. Tax and corporate records should be held for seven years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Need a professional? Our Vendor Network lists qualified Accountants and Bookkeepers to help with finance and accounting.

Step 7: Apply for New York Permits and Business Licenses

Most businesses aren’t required to register with the US government. However, the state of New York requires all companies to be licensed to operate. You may also need to apply for permits related to your industry. You can check local and state business authority websites for more information.

Order a complete business license package from our partners.

Step 8: (Optional) Recruit Qualified Workers

If you’re planning to hire yourself or employees, you may be required to register as an employer in New York. You can check the state business website for information and the application process. Our employees and payroll guide will help you hire and pay your staff.

Find affordable payroll providers to manage payments and taxes.

Step 9: Start Business Insurance Policies

You may not need all types of business insurance, but most companies do need the following types of policies.

• Business Owner
• General Liability
• Commercial Property
• Workers’ Compensation

Insurance rates are driven by your industry, age of the business, and other related factors. Some policies aren’t required, but offer excellent protection for just a few hundred dollars a year.

Contact our Recommended Insurance Providers for free quotes and affordable business policies.

Step 10: Organize and Automate Processes

You may be the only employee of your startup, so at first, you’ll likely do everything on your own. This is typical for a new business, but growth is the game, so you’ll want to organize and automate as many tasks as possible. Setting recurring tasks like payroll, paying bills, and taxes on auto-pilot allows you to spend time on growing your business, not just admin tasks. In the event you have to take leave from the business, your company can run without you. A well-organized business has documented procedures so someone can run your business in your absence. Read some of our best tips on managing a company to help you automate recurring tasks.

Step 11: Develop Business Identity and Advertise

By this step, you have registered and organized your company for success. Now it’s time to create a logo, set up a website, and market your business. We can help you with your marketing strategy. For more information, check out our Sales and Marketing guide.

Order a custom Domain Name, Email, and Website package with MyCompanyWorks

Step 12: Ongoing Requirements for Your Company

DBA (Assumed Name): New York DBAs or Assumed Names should be valid for 5 years. If you change your business name, you will have to apply for a new certificate with the updated name.

LLC: New York LLCs must file biennial reports during the month of organization. So if you registered your LLC in May, biennial reports are due in May every 2 years. You must pay a filing fee to submit the report.

Corporation: New York corporations must keep complete accounting and business records at the principal business address. The 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.

Corporations must file biennial reports in New York. Reports are due the month you originally formed your Corporation. So if you incorporated in January, your biennial filings are due in January every 2 years. A filing fee is charged when a report is submitted.

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

MyCompanyWorks Premium™ service can automate most 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