Greetings! Today we’re covering an exciting area of our firm’s expertise: how to start a business in New York State. The dream and feeling of becoming a business owner and having ownership of your work life is exciting. There is no one-size-fits-all blueprint on how to start a business, but there are best practices and steps you can take for success. In this article, we’ll be explaining how to start a business specifically in New York State and the legalities of starting a company in general.
There are many variables and steps to starting your own business which is an investment in yourself and your future. It’s a dream that can be easily and affordably converted into a reality. The requirements and fees needed to establish a business vary from state to state based on your business activities, location, and government rules. The fees associated with starting your own business as well as the annual renewal will vary. For information regarding state-level requirements for starting a business, we encourage you to refer to your state’s website.
In addition, most small businesses need a combination of licenses and permits from both federal and state agencies. The licenses and permits you need from the state, county, or city will depend on your business activities and business location. Hence, we encourage you to visit SBA.gov’s Business Licenses and Permits Search Tool which allows you to get a listing of federal, state and local permits, licenses, and registrations you’ll need to run a business.
Below, we have created a concise list of steps of how to start your business and a list of resources view and consider. They are:
- Conduct market research. Market research will tell you if there’s an opportunity to turn your idea into a successful business. It’s a great way to gather information about potential customers and businesses already operating in your area. Utilize that information to find a competitive advantage of your business. Gather demographic information to better understand opportunities and limitations for gaining customers. This could include population data on age, wealth, family, interests, or anything else that’s relevant for your business.
- Write your business plan. Your business plan is the foundation of your business. It’s a roadmap for how to structure, run, and grow your new business. You’ll use it to convince people that are working with you – or investing in your business – is a smart choice. A good and solid business plan guides you through each stage of starting and managing your business.
- Fund your business. Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need. Funding your business is one of the first – and most important – financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business.
- Pick your business location. Your business location is one of the most important decisions you’ll make. Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make could affect your taxes, legal requirements, and revenue.
- Choosing a business structure. The legal structure you choose for your business will impact your business registration requirements, how much you pay in taxes and your personal liability. Our last article gives you an understanding and breakdown of the different types of legal business structures and which ones are best. However, we encourage you to consult with business counselors, yours truly The Law Offices of Marjory Cajoux, and accountants for professional assistance.
- Choose your business name. It’s not an easy task to pick the perfect name. You’ll want one that reflects your brand and captures the essence. Your business name should reflect your brand identity and doesn’t clash with the types of goods and services you offer. Once you settle on a name you like, you need to protect it. There are four ways to register your business and name. Each way of registering your name serves a different purpose and some may be legally required depending on your business structure and location.
- Entity name protects you at state level Trademark protects you at a federal level.
- Doing Business As (DBA) doesn’t give legal protection, but might be legally required
- Domain name protects your business website address
- Register your business. Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. If you’re doing business under a name different from your own, you’ll need to register with the federal government, and maybe your state government too.
- Obtain federal and state tax IDS. You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. It’s like a social security number for your business.
- Apply for licenses and permits. Most small businesses need a combination of licenses and permits from both federal and state agencies. The licenses and permits you need for your business will vary by industry, state, location, and other factors.
- Open a business bank account. A small business checking account can help you handle legal, tax, and day-to-day issues. Open a business account when you’re ready to start accepting or spending money as your business. A business bank account helps you stay legally compliant and protected. It also provides benefits to your customers and employees.
This is The Law Offices of Marjory Cajoux, and we are ready and committed to provide you the best possible service and support in the areas of immigration, real estate, estate and business planning and personal injury (WTC claims).