New York is recognized as one of the worst States for small business. Suffering from a high cost of living, high taxes, anti-business government, and dysfunctional educational system, New York State offers little to those with the courage to attempt self employment.
DIY New York Startup Guide
A business registration is more than just creating an official name for your business. Your business registration serves to identify the type of business formation, that is, the form of legal entity that was created.
When you incorporate, form a partnership, or create a cooperative organization, you are establishing a separate legal body that will be taxed as an independent entity. Often, new business owners do incorporate, but it's not essential for all businesses to do so.
Many small businesses can operate for years without ever needing to establish an indedpendent tax identification. The State of New York uses the term "Assumed Name" in reference to IRS "disregarded entity type" businesses. The State of New York requires small business owners to file an Assumed Name Certificate with the county clerk for every county in which the business may transact business.
The State of New York charges $25 per county outside New York City and $100 per county within New York City to provide county specific Assumed Name Certificates. Individual county clerks may charge additional filing fees. The total fee for a corporation to obtain a Certificate of Assumed Name for all counties in New York State, including the Department of State's fee, is $1,950.
To obtain New York State Assumed Name Certificates visit:
New York Dept of State - Assumed Name Certificates
The New York Department of State Division of Corporations, State Records, and UCC provides an online resource for obtaining an Assumed Name Certificate. However, there is no central processing point or online resource for submitting certificates to the 62 counties throughout the State.
Federal Employer Identification Number (EIN)
As a sole proprietor operating a Assumed Name business, there is no legal requirement for your business to obtain a Federal EIN. However, there is also nothing to prevent you from doing so. Many small business owners obtain an EIN so they can maintain a separate bank account for their business.
Whether required or voluntary, the EIN application process is the same. The IRS provides applicants with several application methods, including online, by phone, fax or mail. Online and phone applications are completed and approved immediately if no additional information is required. Fax and mailed EIN applications are processed on a first come-first serve basis and can take up to four weeks to process.
Business and Trade Licensing
If your business will be providing any of the 83 professions or trades services, you are also required to register for a New York State Occupational License..
County and Local Licensing
Many communities and trading areas also require some form of registration for tax purposes and to ensure the business is operating from a properly zoned location. Contact authorities within your local community for more information.
Creating a Business Plan
Before you do anything else, be sure to to create a business plan. For a small business, keep the plan simple. Most new business owners only need a list of the startup costs and monthly expenses balanced against anticipated income.
For a small business, the point of a business plan is to be sure you have enough money to survive the startup period because, while it will typically take a while for your income to rise as high as it was before you started the business, your personal bills will remain the same.
The question your business plan is supposed to answer is, whether your business income will grow fast enough to cover your bills before you run out of money. Don't be realistic, be pessimistic. It's better to plan for a worst case scenario and do better than expected, than having the opposite happen.
Financial & Legal Guidance
The State of New York offers several types of business formation. Each type provides benefits and detriments. The idea is to align your needs to the type of legal business entity that is best. To accomplish that, it's important to seek professional assistance.
Your choice of business formation is a serious legal matter that demands professional guidance. It is always advisable to consult both a lawyer and a certified public accountant before making your decision.
In many cases, your lawyer will register your business entity for you. However, if you are starting your business using a Assumed Name registration, the New York Department of State is a good place to start the costly and lengthy process of obtaining the numerous and forms needed to comply with the monumental regulations imposed upon New York State businesss.
The State of New York ranks among the top five most difficult States to own a small business. Before sacrificing your savings on a business that has little chance of survival, consider first moving to any of the numerous States that welcome small business owners and value the contribution they make to their State's residents.