In this article, we will be talking about the easy steps on how to register business in New York.
A company’s name must be chosen and registered with the New York Secretary of State as part of the New York business registration process.
You must first have a firm understanding of the procedure for how to register business in New York if you intend to conduct business in the city.
Before anyone is able to own a business firm in New York, they are some mandatory procedures to follow which include the steps listed below.
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Perform a New York Company Name Check.
When planning on how to register business in New York, choose a name that is memorable and clearly describes the goods or services your business will provide when registering a business name in New York.
To avoid concerns with copyright and identity, you should make sure your company name is distinctive. We adamantly advise you to additionally examine if your company name is accessible as a web domain (URL).
Even if you don’t immediately intend to launch a company website, you might wish to purchase the domain name to stop someone else from doing so. If the web domain is available, it is probably also possible to find the name in a business search.
When you confirm the availability of your business name and secure it, you can choose to apply for a trademark for your company.
While this cost can be high for a start-up or fledgling business, it will give your company and brand nationwide protection supported by federal law.
This is the crucial step because your application will be rejected if you attempt to claim a name that is already in use.
This implies that you will have legal precedence on your side if someone tries to operate a business using the same or a name that is similar to yours.
Select an appropriate business entity.
Another important step in how to register a business is choosing the type of business entity you will create. It is one of the most crucial business decisions you will make when registering your company.
Determining whether you require personal liability protection is the first step in selecting a business structure for your New York company.
A legal division between your personal assets and your business assets can be made thanks to personal liability protection.
Because the company is legally distinct from its owner, formal business forms like limited liability companies and corporations provide liability protection.
Because there is no distinction between the business and the owner, informal business arrangements like sole proprietorships and partnerships don’t provide security.
As a result, creditors and legal actions have full access to the owners’ personal assets.
There are various business structures you can start with, depending on your business concept.
How you register your firm with the state will depend on the sort of business structure you select.You should think about the following factors before deciding:
- Taxes
- Liability
- Annual reports
In New York, you have the option of forming a corporation, a limited liability company, or a sole proprietorship.
Sole Proprietorship
The simplest kind of business to own and run is a sole proprietorship. You will manage your company on your own as a sole proprietor.
There won’t be any legal way to separate your business from you. You can pick a name for your firm, but it will be officially registered in your name.
You don’t need to submit any unique paperwork to the state in order to operate a sole proprietorship in New York.
However, you must submit a certificate of a fictitious business name if you choose to use a business name that is distinct from your legal name.
In a sole proprietorship, you are personally liable for all business expenses and can mix personal and business funds.
Your personal assets may be at stake in the event of a lawsuit if your business is viewed as an extension of yourself.
There are several advantages to setting up your business as a single proprietorship, notwithstanding the possibility of liability. Your options include:
- Avoid corporate formalities like voting procedures and meeting obligations.
- Your personal tax return will make it simpler to keep track of and file your taxes.
- Offset some of your income with losses or expenses from your firm.
Additionally, there are some disadvantages to running your business as a sole proprietorship.
- For instance, you cannot raise money by selling stock in your company.
- If you were to pass away or experience another situation that rendered you unable to work, your business would be of little value.
- A business that runs as a sole proprietorship may not be granted some formal contracts.
Partnerships
It shares the same legal status as a sole proprietorship, which can have two or more owners and can be either limited or general.
Partnerships are handled the same as a sole proprietorship in terms of taxation and liabilities.
The main distinction is that in a partnership, two or more owners split the profits and liabilities.
Limited Liability Company
There are advantages to forming your company as a limited liability company (LLC), including the following:
- Legal defense of the owner’s private property.
- Similar advantages to a company without the formalities and paperwork.
- The advantages of pass-through taxation, which frequently results in lower taxes and aids in preventing the double taxation that firms face.
You must: in order to register your LLC in New York.
- There are several ways to submit your articles of incorporation to the Secretary of State online, by mail, by fax, or in person.
- The $200 filing fee must be sent.
How to create an LLC in New York is as follows:
- Name LLC Your New York
- Decide on a registered agent file. You and the State’s LLC
- Observe the Publication Requirements in New York Establish an LLC Operating Agreement.
- Obtain an Employer Identification Number (EIN)
Additionally, there are disadvantages to becoming an LLC, such as:
- You cannot employ oneself as an LLC owner.
- On your portion of the profits, you are obligated to pay self-employment taxes.
- Even if you didn’t receive a payout, you still have to pay taxes on your half.
- The typical lifespan of an LLC is between 30 and 40 years
Corporation
A complicated legal framework made up of directors, executives, and stockholders that is distinct from the owner.
The following are advantages of choosing a corporate structure:
- More discretion in action.
- Protection against legal action for stockholders.
- An endless existence
You must: in order to establish a corporation
- You can submit your New York corporation’s Certificate of Incorporation online, via mail, by fax, or in person.
- Send a $125 filing fee.
The four steps to forming a corporation in New York are as follows:
- Give Your New York Corporation a Name.
- Select a registered agent in New York.
- Choose Your New York Corporation’s First Directors
- Place the incorporation certificate in the mail.
If you want to incorporate your business, it will function as a formally recognized entity and be able to:
- Sue.
- get sued.
- Pay taxes.
- commit offenses.
- Buy and sell real estate.
Acquire your Employer Identification Number (EIN)
One of the steps on how to register business in New York includes using your social security number if you are starting a sole proprietorship and working by yourself. The Internal Revenue Service must issue an EIN to all other businesses.
Obtaining an EIN is free, and it will serve as your company’s tax identification number with the government.
You must register with the New York State Department of Taxation and Finance if you are selling products or services.
Determine what insurance you need to obtain in order to operate your business if you have employees.This covers insurance for workers’ compensation as well as insurance to safeguard your company’s assets.
Employers must comply with New York State’s regulations for pay reporting and tax withholding, as well as for unemployment, workers’ compensation, and disability benefits insurance.
All businesses must comply with state tax laws, and the type of business you have will determine your liabilities and the taxes you must register for.
Send your New York company registry forms to the state to set up your New York firm.
planning on how to register business in New York, You will need a business account with the New York government if you want to register your company and handle all of your licenses and permits online.
You must open a business account even if you already have an individual account. Even if your company is set up as a sole proprietorship, this is still true. The business services are only accessible through business accounts.
Sign up with New York Business Express
Once you have a New York government business account, you may utilize the New York Business Express to register your company for taxes and to request any licenses or permits you might require to access the Business Wizard.
You may find out exactly what you need to register for and what licenses or permits you require after providing some information about your firm.
You only learn about state business licensing, permits, and registration through New York Business Express.
Finally
if your company is based in New York city, you will also need to register for city taxes and obtain any necessary local licenses and permissions.
You must provide your articles of organization and other pertinent paperwork to the New York Department of Commerce, Communities and Economic Development in person or by mail as the last step on how to register business in New York city.
