How to Start a Business in New York
The only bookmark you need if you ever want to start a business in New York.
New York Business Facts
- New York is known as The Empire State, due to its wealth and rich collection of resources. New York itself was named for the Duke of York in 1664.
- The official bird of New York State is the bluebird, and its official flower is the rose.
- New York’s economy is the third largest in the country, with a gross state product of $1.44 trillion. It is outranked by California and Texas. If it were a country, it would rate as the 12th or 13th largest economy in the world.
- New York City is one of the world’s largest center of finance, 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.
- With a population of over 8 million, New York City has a reputation as a melting pot, and is one of the most diverse cities in the United States.
New York Business Statistics
New York State is home to 2.1 million small businesses, which make up 99% of the state’s business population. They employ 3.9 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
ABC, HBO, Harper Collins, Hearst Corporation, AOL, Warner Music Group, Virgin Media, Viacom, Verizon Communications, etc.
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.
New York Business Startup Checklist:
Assuming you’ve already worked out your business idea, how you’re going to fund your company and have at least done a simple business plan, these are the steps for starting a business in New York:
Other New York Business References:
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.)
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
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Step 2: Pick a Business Name
Picking a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that, the better).
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if you’re name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use google at a fairly advanced level you can reasonably clear a name yourself. Tip: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the New York Business Entity Database and doing a name search on the State of New York website. Note: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
Ready to start a business in New York?
| Our New York filing services will help you get started as quickly as possible. | Order Now |
Step 3: Register the Business
Each state has it’s own requirements for registering a business. Now that you’ve chosen a business structure and picked your business name, here are the requirements to register your business in New York.
How to form an LLC in New York
- Optional: Choose a Registered Agent Service: In New York, the Secretary of State acts as the registered agent by default, though you may choose to use an alternative service.
- File the “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.
- Hold an Organizational Meeting to take contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more. (yes, even for 1 person LLCs).
- Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can choose to be taxed as an S-Corporation (or even a C-Corporation). TIP: Speak to your tax advisor about this important issue because it adds complexity to your LLC most people would rather avoid.
How to Incorporate in New York
- Optional: Choose a Registered Agent Service: In New York, the Secretary of State acts as the registered agent by default, though you may choose to use an alternative service.
- File the “Articles of Incorporation” with the New York Division of Corporations.
- Optional: Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
- Hold an Organizational Meeting to properly organize the corporation, take contributions from the shareholders, elect directors and officers, issues stock, adopts the Corporate Bylaws and more.
How to File a DBA in New York
New York requires a company use its true legal name to conduct business – any company seeking to use a name other than its legal name must file for a DBA.
- Check your business name by calling the County Recorder or visiting their website (search for “YOURCOUNTY county recorder” should find it).
- Obtain a Certificate of Assumed Name. Note that if you are a corporation, limited partnership, or LLC, you must instead obtain a certificate complying with Section 130 of the General Business Law.
- File the forms with the County. The fee for filing is $25, plus any associated county’s fees. For corporations, the fee is $100 for each county within New York City, and $25 for each county outside.
Ready to register a business in New York?
Our formation package includes everything you need to get started
- Preparing and submitting Articles of Organization to the state of New York
- All the necessary post-formation documents completed and personalized to you “ready for signature”
- Our exclusive Startup Wizard – which guides you through the complete startup process from formation to bank accounts, logos and more.
Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
You can read more about corporate tax laws in New York on the New York Department of Taxation and Finance website.
TIP: We will obtain your EIN for you if you we form your company.
Step 5: Open Company Accounts: Bank and Credit Cards
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (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
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Obtain Business 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 7: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company 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 cost of $9.
Franchise Taxes: New York businesses are required to pay an annual franchise tax based on several categories, outlined here.
Ready to start a business in New York?
| Our New York filing services will help you get started as quickly as possible. | Order Now |
Important New York Contacts:
New York Department of State
- Division of Corporations (for Corporation and LLC filings)
99 Washington Ave
Albany, NY 12231
- Division of Corporations (for Corporation and LLC filings)
New York Taxation & Labor Departments
Top 10 New York Startup Resources
We help businesses form in New York everyday.
Whether you want to form an LLC or Incorporate our formation services include everything you need to get your new company started quickly.
