Steps to Start a Small Business in NYC
If you are wondering how to start a small business in NYC then it is important to first identify the business idea and the market you want to launch in. There are several processes that will be involved towards turning your idea into a profitable business in New York. These processes vary from the creating a business plan to securing funding and registration of the business. Let us look at the key areas that you will need to focus on in order to achieve success.
1. Prepare a small business plan
A well written business plan can turn your idea or innovation into a profitable business in New York. Essentially, a business plan is a strategic tool that an entrepreneur or small business owner can use to identify the various requirements of the startup right from the conception phase to the operational stage. A good strategic plan will help you in identifying targeted markets, competition, startup costs, and long-term objectives. If you plan to start a small business in NYC then some of the key areas of the plan are:
- An executive summary of your small business
- An objective statement defining business goals
- The legal structure of your business
- Startup Expenses
- Research of the market to launch in
- Existing and expected competition
- Identification of targeted customer
- Products and services you are planning to offer
- Marketing and sales strategy
- Financial projections
It is important to ensure that your business plan is concise and contains all relevant information pertaining to making the startup operational and for securing funding.
2. Register your business
One of the important aspects of starting a business in NYC in checklist form is registration of your business. The new business formation process, documentation, and filing fee vary according to the legal structure of the entity as chosen by you. It is also important to note that the process and documentation for registering a domestic entity is different from that of a foreign entity. Let’s look at an example to make it simpler.
Example: If your small business ideas in New York revolve around forming a single owner startup then you can opt to form a sole proprietorship or a single member LLC. A sole proprietorship business is not required to register with the state but if you form a Limited liability Company (LLC) then you will be required to file the Articles of Organization with the Department of State pursuant to Section 203 of the New York State Limited Liability Company Law. The filing fee for an LLC will be $200.
Similarly, if you want to start a small business in NYC as a C Corporation then the documentation and fee would be different. At IncParadise, we can help you to register your company in the state, so that you don’t have to worry about the complex processes and documentation.
Start a small business in NYC Today!
3. Secure funding for business
If you want to know how to start a business in NYC with no money then the first step towards it is to identify ways to secure funding. It is no secret that even a startup from home will require capital for making the business operational. You have to first determine how much funding your business will require. A business plan will help you to create the budget for the same. So how do you arrange for startup finances? One of the best options is to identify the various small business grants and related funding opportunities in NY.
4. Check for business license, permits and zoning requirements
If you are planning to start a small business in NYC then there are several state requirements that the entity has to fulfill to maintain a good standing. One of the key requirements is getting a business license or permit. The license or sales permit will help a new business to conduct its operations in the state. IT is required by both domestic and foreign entities. The type of license required will often be dependent on the industry or business activity. If you want to start a company with your small business ideas in New York then you can choose from three different types of licenses, which are:
- Industry based licenses like a manufacturing industry or tourism sector
- Occupational licenses for professional skills like a certified public accountant
- Local licenses, which are issued by the city or county your business is based in like in Manhattan or Brooklyn.
You may also need a seller’s permit, which is also known as the certificate of authority. Apart from the permit, you need to ensure your business is in compliance with all zoning laws and has the necessary building and zoning permits to start a small business in NYC.
Do you want to know more about business licensing in New York?
5. Open your small business
Once you have registered your business and obtained necessary licenses and permits, the next step is to start conducting business. One of the important things to remember is that in order to start a small business in NYC, you need to have your marketing strategy in place. The more customers you reach with minimal marketing expenses, the higher the probability of making a profitable business in New York will be.
Depending on the type of business, you can even create a website and market on social media to create higher awareness. You need to also apply for and obtain an EIN (Employer Identification Number) as this helps in opening a business bank account and also for filing tax returns. Once you start conducting business, you will need to ensure, you maintain annual compliances like renewal of business licenses or permits and filing of annual reports.