Starting a Business in New York? Here is What You Need to Do

We here at Falcon Consulting & Marketing primarily achieve success for our clients by maximizing their advertising dollars by implementing strategies to increase their Return on Investment (ROI).  Before you are able to get to that point in the game, one must actually open up a company.  Opening up a company is a painless experience if you know what you are doing.  Also, with a little forethought, it can set you up for any potential litigation or bad-will in the future.  Being an entrepreneur is a wonderful thing for many.  You get to set you own hours and can guide your future the way you would want to.   It is an exciting experience and we have worked with many individuals that have deciding to leave their secured job to the small business life.

Here is what we believe start-up companies should do when they are ready to start their business:

Choose what type of business structure you want to be:

In New York, your choices are: sole proprietor, partnership, corporation (C corporation or S corporation) or limited liability company (LLC).  You should speak with a CPA (certified public accountant) to see what structure is the best for your tax situation and speak with an attorney to discuss various structure options.  There are costs associated with choosing an LLC that goes above and beyond the Corporation and other entities.  Also, you should look into a structure that is flexible as your business grows. For example, if you hope to attract investors,  an LLC  or corporation might be the better business entity. If you are opening up a not for profit organization 501(c)(3), there are more rules involves and that would include the purpose of your organization.

Everything should be done via  a written agreement  and signed by the business partners.  You are working with other people that even though you might have a great relationship with someone now, you never know whether there will be a misunderstanding in the future that can jeopardize your capital investment and salary.  Also an agreement should set forth what everyone is responsible for and how you can terminate or opt out of the agreement.  With business, it is always better to be safe than sorry.

Choose a name for your business

Corporations must contain the word “corporation”, “incorporated” or “limited”, or an abbreviation of one of such words.  Also, the name of the corporation cannot be the same as any other New York corporation, limited liability company or limited partnership.  If it is even similar to another name, the State will not allow you to pick the name and you will have to search again. The resource that works very well New York Corporation Database.  You can find it online via the Department of State website.  It is very easy to use and you will get an idea pretty quickly on what names are out there to use.

Apply for a Tax Identification Number with the IRS

Here is the link to the IRS’ How to Apply for an EIN (with separate instructions for Corporations, International Businesses, Partnerships, and Small Business/Self-Employed).  Your applying by telephone is sometimes easier than via the online method.

Open up a bank account

Once you have your federal tax ID, you should open bank account(s) in the name of the business.   Generally the bank will need to see your legal business formation documents.  You should include your corporate by-laws which indicates who has authority to act on behalf of your corporation.

Get the necessary permits to run your business

It is important to know whether you can conduct business in New York without a permit or license.  You should contact the Department of State to see whether you need a permit to work in your area before you start anything.  You should be familiar with this before expending money on incorporating your business.

Once you have done all of these steps then you are ready to be your own boss.  If you have any questions or need assistance please contact Falcon Consulting & Marketing.  We are a New York City based digital marketing agency that has helped small businesses one client at a time.

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