New York LLC Annual Filing Requirements

Once you have formed an LLC or incorporated a new business, the next step is to ensure your company meets all annual compliances as mentioned by the New York State Laws for business corporations and limited liability companies. This takes into account the filing of the New York Corporation annual requirements. It is important to note that different states in the US have different annual requirements although most states will require businesses to file annual taxes and an annual report. This report is known by different names like an Annual Franchise Tax Report, Statement of Information, Business Entity Report, and the New York biennial statement.

File LLC Biennial report

One of the important New York LLC annual requirements is the filing of the annual report also known as the Biennial Statement or Biennial Report. The biennial statement is a legal document that has to be filed by both domestic and foreign LLCs operating out of New York. The filing of a New York LLC annual report is governed by Section 301(e) of the Limited Liability Company Law.

What does it include and how can you file the LLC Biennial report?

The New York LLC annual report or biennial statement is one of the important annual requirements for a limited liability company registered in the state. This legal report contains important information regarding the said company and helps in keeping the LLC business records up to date with the Department of the State. The report contains the following information:

• Department of State (DOS) Case ID (DOS ID)
• Filing Period
• Name of the limited liability company
• Principal address of the LLC
• Owners name and address
• Name and address of the New York registered agent handling service of process
• The street address of owner or members

Do you want to file a New York LLC annual report?

What is the due date for filing?

As a part of the New York LLC annual requirements, you have to ensure the filing of the biennial statement happens during the stipulated time. The filing period or due date for a limited liability company is the calendar month in which the Articles of Organization or Application for Authority (Foreign LLC) was filed. The New York biennial statement has to be filed once every two years.

Penalties if fail to file

If you register an LLC in New York then the state considers biennial reports as important annual compliance documents. If at any given point in time if you fail to file the New York LLC annual report then there are no penalties but your company will not be in good standing with the state department. At the same time, the Department of State may also conclude that your said LLC is delinquent if you are unable to file this report within the filing period.

NY LLC Taxes and Annual Fee

The New York LLC annual requirements can vary according to the type of Limited Liability Company you have formed. Apart from the New York biennial statement, there are annual fee and tax requirements that a new business needs to file in the state. The requirements your company needs to be compliant with include:

• If your LLC is a disregarded entity then you will be required to file annual tax returns in New York if your company shows income, gain, deduction, or loss from state sources. You will be required to file an IT-204-LL form with the Department of Taxation and Finance.
• If you form an LLC to be treated as a business corporation for the purpose of federal income tax then you will be required to file a NY State corporation franchise tax return.
• If your LLC is manufacturing or selling products then you will be required to file sales tax or sales and use tax as a part of annual tax returns in New York.

New York INC Annual Filing Requirements

If you are planning to form a business corporation then there are several annual maintenance requirements that you will need to fulfill. Annual compliance is required in all states of the USA and New York Corporation annual requirements revolve around the filing of taxes and an annual report. The annual report is also known as a New York biennial statement and is an important legal document. The annual filings are governed by the 2020 New York Laws, BSC – Business Corporation.

File Corporation Biennial report

One of the important New York Corporation annual requirements is the filing of the annual report, which is also known as the Biennial Report or Biennial Statement. A biennial statement is a legal document, which needs to be filed by both domestic and foreign business corporations operating in the state. The filing of a New York biennial statement is governed by Section 408 of the Business Corporation Law.

What does it include and how to file the Corporation Biennial report?

The biennial statement is a mandatory New York Corporation annual requirement and has to be filed pursuant to NY Bus-Corp L § 408 (2020). It is a legal document that contains business-related information pertaining to the corporation. The information set forth in this report is:

• Department of State (DOS) Case ID (DOS ID)
• Filing Period
• Name and address of the chief executive officer
• Street address of its principal office
• Number of board of directors
• Name and address of the New York registered agent handling service of process
• The number of women directors on the board

Wondering how to file an annual report for a New York Corporation?

What is the due date for filing?

As a part of the New York Corporation annual requirements, you will need to file the annual report during a specified time period. The filing period for a corporation is the same as that of an LLC, which is the calendar month in which the Certificate of Incorporation or Application for Authority (Foreign Corporation) was filed. The New York biennial statement has to be filed once every two years.

Penalties if fail to file

Once you incorporate in New York you will have to maintain compliance with the state by ensuring all New York Corporation annual requirements are met. If at any given point in time, you fail to file your annual report within the due date then there are no penalties as such. If the New York biennial statement has not been filed for a period of two years then such a company will be declared as delinquent on the records of the department of state pursuant to NY Bus-Corp L § 409 (2020)..

NY Corporation Taxes and Annual Fee

When you form any type of business there are some state requirements that you have to meet in order to share a good standing with that state. Similarly, New York Corporation’s annual requirements require you to file taxes or annual returns to maintain compliance. The annual tax returns New York applicable to a business corporation are:

• If you have incorporated in New York or participated in certain business activities in the state then you may be required to file New York State corporation tax return. This tax is filed using Form CT-3 or General Business Corporation Franchise Tax Return.
• If your corporation is into manufacturing or selling certain goods then you will be required to file sales tax returns or sales and use tax as a part of annual tax returns in New York.

Need any Assistance in Filing New York LLC or INC Biennial Reports?

If you form a business in New York then there are different annual requirements to fulfill depending on the type of business you form. The New York biennial statement or the annual report is one of the most important documents considered a part of LLC or New York Corporation annual requirements.

Online Business in New York

The retail e-commerce industry and revenue have grown by leaps and bounds in the United States from $424.9 billion in 2017 to $767.7 billion in 2021. The percentage change in retail e-commerce sales growth was 31.8 percent in the USA in 2020 as compared to a worldwide growth of 27.6 percent. This only hints at the possibility of long-term growth for those planning to start an online business in New York. Apart from this, there are also several advantages that you can leverage if you start an eCommerce business in NYC. You can start your online business in New York as a Limited Liability Company or as any other form of business like a corporation or even a sole proprietorship.

What are the biggest benefits of doing business online in New York?

If you are planning to start an online business in New York then there are several advantages you may have over a brick and mortar business. The state of New York also provides several benefits to a small business in terms of overall cost of setting up and operating such a business. You can start an online business from home in NYC or even from co-working spaces. Let’s look at some of the biggest benefits:

• Infrastructure for eCommerce – Infrastructure is an integral component when it comes to making your business stand out or achieve the intended growth. Infrastructure for an online business or e-commerce is a little different from that of a traditional brick-and-mortar store. The good news is that if you start an eCommerce business in NYC then you can benefit from high-speed internet access, keeping in mind this is key to any online business. A report by broadbandnow.com reveals that 98.3% of New Yorkers have access to high speeds of 100mbps or faster.
• Low Business and Operating Costs – If you are taking your business online then one of the biggest benefits is the lower operational costs. If you want to start an eCommerce business in NYC then all you need is an operational website along with an integrated payment gateway so that customers can transact from the convenience of their home. This also means that you don’t have to buy or rent a commercial space and work straight out of your home thus cutting down overhead costs as well as costs associated with utility, space, etc.
• Other Salient aspects – There are several other benefits that you can leverage if you are planning to start an online business in New York. Some of them are:
  • Global access
  • 24/7 Availability
  • Improved customer service
  • Flexibility of operating from anywhere
  • Provide services in real-time
  • Manage your business from remote locations

Top online business ideas in NYC

Online businesses and e-commerce has become a megatrend as it benefits businesses of different sizes through lowering capital costs while providing a better consumer experience. Whatever type of business you operate over the internet, you will need an online business license in New York to ensure it runs smoothly. There are a variety of business ideas that you can choose from now that internet marketplaces have really opened up. Some of them are:

• Service Based Company – You can provide a wide variety of services and using the internet, reach out to a global audience depending on the type of service being offered. You can start an online business from home in NYC to provide such services. These services can be targeted as a local audience as well as to customers based overseas or at a remote location. Some of the top services include:
  • Content Development and Management
  • Application Development
  • Online dating services
  • Mass media and Digital Marketing
  • Financial Services like digital payment services
  • Online personal assistant
  • Stock or foreign currency trading
  • Dropshipping
• Product Based Company – You can start an online business in New York to deliver a wide variety of products. There has been a paradigm shift and gone are the days when people would have to walk into a retail outlet to purchase goods from electronics to food. Due to the higher access to the internet and millions of websites and applications; you can order just about any product online. This is an important reason why entrepreneurs prefer to start an eCommerce business in NYC. Some of the top business ideas in this segment are:
  • Fashion and Apparel
  • Beauty and Personal Care
  • Entertainment including e-books
  • Home-based bakery
  • Virtual thrift shop
  • Electronic goods sale and repair
  • Any commoditized products
  • Self-created brands of products
  • Health-conscious food
  • Pet food

Starting an Online Business in New York

The future of online business marketplace or eCommerce seems quite bright as social media platforms have become major influencers in reducing the B2C (business to consumer) gap. You can start an eCommerce business in NYC or a home-based business with ease due to the flexible eCommerce environment and availability of many business resources. Of course, there is a process towards setting up a business online successfully and ensuring you apply for the right online business license in New York.

1. Prepare your New York online business idea and plan

You can start an online business in New York but you need to have a business plan in place first. A business plan is created based on an idea of what you are planning to sell or provide to your customers. Once you have an idea then you need to take into account the various factors that will help you to convert your idea into a sustainable online business. Even if you start an online business from home in NYC, you will need to create a business plan based on the resources you have and an in-depth study of the market dynamics. Some of the important components of a New York online business plan are:

• Executive summary
• Company overview
• Online demographic profile
• Market analysis
• Products or services
• Online revenue model
• Social Media Marketing plan
• Operations plan
• Logistics and Shipping (if required)
• Financial plan

2. Choose your New York online business name

Choosing a proper business name is quite an important step towards building your online business. The name is crucial as when you start an online business in New York, your customers are going to identify your brand, products or services with the business name. The name is an identity and hence is used for purposes of marketing, branding, and sales. This is not all; the new business formation process requires a company name. There is certain business naming guidelines that you will be required to follow and they are:

• The naming guidelines will vary according to the business structure. So if you start an eCommerce business in NYC as a corporation then it should contain words like “corporation” or “incorporated” or abbreviations like INC. or Corp., pursuant NY Bus-Corp L § 301 (2020)
• The chosen business name should be distinguishable from any other names existing in the database of the NYS Department of State, Division of Corporations. This is made possible by conducting a name availability search.
• If your chosen name is available then you will need to reserve it by filing the Application for Reservation of Name along with the appropriate fee.

3. Register your online business with NY SOS

Whether you start an online business in New York from your home or operate it out of a retail store or commercial space; one of the important requirements is to hire a reputable registered agent. The NY business law makes it mandatory to designate and continuously maintain a registered agent in the state. A registered agent plays several important roles right from providing service of process to ensuring your company is in compliance with all requirements of the Department of State.

Start your online business in New York today!

4. Obtain all necessary licenses and permits for online business

Once you have applied for incorporation or registration of your new business, the next step is to make it operational. This can be made possible by applying for and obtaining an online business license in New York. Your business may require a single license or multiple permits and licenses depending on the location and activity the business is involved in. If you start an online business from home in NYC, you may still require certain permits. These licenses and permits can be categorized as under:

• Licenses and permits based on the industry your business activity is categorized under
• Local or County Licenses and permits
• Professional Licenses offered through the Department of State.

5. Buy website domain and build an eCommerce website

Since you are planning to start an online business in New York, it is important for your business to have the proper online presence. This is possible through the following steps:

• Choose a domain name – The domain name can be the same or similar to the name that you have reserved during new business registration.
  

  For Example: If you want to start an online business from home in NYC that sells cookies made fresh at home then you can use a name like “cookie Jar”. You can reserve this name with the state and also look for a domain like cookiejar.com or cookiejar.org.

• Choose a website hosting – If you want to start an eCommerce business in NYC then the right hosting matters. When choosing a hosting provider there are certain factors to be taken into consideration like hosting servers and plans, customer support, security encryption, bandwidth, root access, payment gateways, email accounts, shopping cart, and control panel among others.
• Create a Website – You can have your website designed by a professional web designer or choose an existing template or use an e-commerce website builder. In order to create a website, you need to have your images and content ready so that you can start an online business in New York as quickly as possible. It is also important to ensure that the website is available for all devices like a computer as well as a smartphone.

6. Get EIN and File your taxes

An employer identification number or EIN is also known as the business tax ID and this is a unique nine-digit number that is issued by the Internal Revenue Service (IRS). Most forms of businesses would need to obtain an EIN for tax purposes including those who start an online business in New York. This tax ID is also known as the Federal Employer Identification Number (FEIN) and has several other benefits like helping you to obtain a business loan and making the process easier to open a business bank account if you plan to start an eCommerce business in NYC.

7. Open a bank account

Apart from obtaining an online business license in New York, you will also need to have a business bank account in order to make an e-commerce website or company operational. Normally, if you already have an EIN, it is easier to apply for a bank account. There are several benefits of operating a business bank account but the most important is that it will help in ensuring your business income and expenses are kept separate from your personal income and expenses. This can further ensure your tax calculation and filing of returns are easier.

8. Comply with taxes and other regulatory requirements

After you start an online business in New York, you will have to maintain annual compliance and meet all necessary state requirements. These include filing annual tax returns in the state. Some of the important regulatory requirements include:

• Whether you start an online business from home in NYC or from a brick and mortar office, you will be required to file a Biennial Report also known as the annual report. This has to be filed once every two years with the New York Department of State – Division of Corporations.
• Most businesses will be required to obtain an online business license in New York. In order to keep your online business operational, you will need to renew these licenses and permits from the respective authority.
• If you start an eCommerce business in NYC then you will be required to collect sales tax. You will hence be required to file sales and use tax in the state, which is a total of 8.875 percent.
• You may be levied other forms of taxes depending on the specific business activity.

9. Market your business

Marketing is an important aspect of every new business and although the marketing tools may be the same, the strategy will be different for an eCommerce company. When you start an online business in New York, the entire marketing strategy will revolve around reaching your customers, creating a brand value, and revenue generation. You will be required to incorporate different tactics based on what you are offering, competition, and the customer demographics. Some of the tactics that will bear result if you start an online business from home in NYC are:

• Boost your online presence and create a strong digital engagement through various social media channels
• Create Search Engine Optimized (SEO) content for your blog or website
• Introduce and promote visuals like videos and images that help in strengthening your product, service or brand
• Advertise on relevant social platforms using engaging imagery and interesting content
• Create meaningful partnerships with complementary brands for cross-promotion
• Participate in different business-related online events including virtual conferences and webinars
• Integrate mobile commerce (m-commerce) to reach out to your customers

Looking to start an online business in New York?

You can start an eCommerce business in NYC with ease due to the availability of high-speed internet access for businesses as well as customers. The online marketplace is constantly evolving and hence you need to have a strong digital marketing strategy in place. Having a great business idea and turning it into a growing business is very much possible and IncParadise can assist you with ensuring you are able to start an online business in New York with ease.

New York LLC or Corporation

New York is one of the few states that boasts of a growing economy, robust infrastructure, and strong financial markets. The state is placed third in terms of Real Gross Domestic Product (GDP) with the finance, insurance, and real estate industry being on the top as it added a real value of $433.95 billion to the GDP. There are several different forms of businesses that you can choose from in the state like a Business Corporation, Limited Liability Company, General Partnership, Limited Partnership, and Sole Proprietorship among others. Since the cost to form a New York Corporation is lower in New York as compared to some of the other states, many entrepreneurs prefer to form a corporation or an LLC in the state.

Which business entity should I choose for a New York business?

If this is the first time you are starting a business then one of the foremost steps is to identify the legal structure for your company. The business structure should be chosen after researching and analyzing the pros and cons of each type of business structure. This is more so as the structure chosen will have a significant impact on several key areas of your business like the annual maintenance cost of a New York Corporation or LLC or any other form of business, legal liability, taxation, and ownership control of the company. Here is a list of areas that will help you to identify the right structure according to your requirements.

• Limited Liability Protection – One of the most important aspects to consider apart from the cost to form a New York LLC or corporation is liability protection. This type of protection simply refers to avoiding any personal liability for any debts of the company owned by you. Liability protection is not offered by all forms of businesses and can play a defining role in reducing the New York LLC annual fee.
• Pass-through taxation – Pass-through taxation refers to the passing through of taxes from the business to the owners or members. There are specific forms of businesses where this type of taxation is possible and in such a scenario, the business taxes are filed through the personal tax return of the owners of such a business. Hence, there will be no double taxation and this in a way simplifies business taxation.
• New Business Cost – The cost to form a New York LLC or a business corporation is not the only cost that will come into play when you establish a new company. There are also several factors that will be responsible for determining the total cost to incorporate in New York and these include the following components:
  • Reserving of business name
  • Filing of annual taxes
  • Correction and amendments
  • Filing Annual reports or Biennial Statement
  • Renting or lease commercial space
  • Hiring Employees
  • Buying or renting office equipment
  • Obtaining business licenses and permits

Pros and Cons of forming an LLC or Corporation in New York

New York is the perfect place to start a new business as it is the financial hub of the nation and has much to offer in terms of commercial space, talent, business incentives, and transportation infrastructure among others. This is one of the reasons why entrepreneurs prefer to form a corporation or an LLC in the state, both of which are considered as business structures with numerous benefits. Of course, the cost to form a New York Corporation may be different from that of an LLC and there are several pros and cons of forming a limited liability company and a corporation.

New York LLC

A New York limited liability is one of the most popular business structures especially if you are looking for tax benefits. An LLC has several advantages and a few disadvantages as well. Here are some of the pros and cons that will help you make an informed choice.

Pros of LLC

• If you form an LLC in New York then you will be able to enjoy the flexibility of being taxed as a sole proprietor, C corporation, partnership, or can even elect for S corporation
• The cost to form a New York LLC is less as compared to some of the other forms of business entities
• You will require less paperwork when it comes to new business formation
• The formation cost of New York LLC will depend on whether you form a single-member LLC (with one person) or multiple-member LLC (several people)
• Members of a New York LLC will enjoy limited liability protection against legal issues or debts

Cons of LLC

• If you form an LLC in New York then apart from the cost to form New York LLC, you will also be required to file taxes
• As an LLC member, you will not be on the payroll of the company and instead will be paid through distributions
• Angel investors and VC’s prefer a New York Corporation over an LLC when it comes to funding
• It is quite complex and hard to transfer ownership in an LLC as compared to a corporation

Are you thinking of starting an LLC in New York?

New York Corporation

A business corporation in New York is one of the most favored structures in the state because most investors and seed-stage funders prefer this organizational structure. A corporation does have several benefits and a few disadvantages as well. They are:

Pros of a Corporation

• A business corporation helps to protect your personal assets implying that creditors of a New York corporation can seek payment only from the assets owned by the corporation.
• The cost to form a New York Corporation is less as compared to some of the other states.
• One of the advantages is that you will have easier access to capital including investors.
• Perpetual existence is another salient aspect of a corporation and it means the entity can continue to exist indefinitely even after the owners or directors are not there.

Cons of a Corporation

• Although the cost to form a New York Corporation is low, there are some other costs that can affect a corporation as it undergoes double taxation. This means the business pays taxes on the income and shareholders pay tax on dividends.
• The process to incorporate in New York can be time-consuming and may involve a lot of paperwork
• A business corporation follows quite a rigid structure and has less flexibility than some of the other forms of business like an LLC.

Do you want to start a New York corporation?

New York LLC Cost

A limited liability company is quite a popular structure of business across the nation and also in New York. It offers several advantages to the owners including the low cost to form a New York LLC. You can choose to form a Single-member LLC (SLLC) or a Multi-member LLC and also define the tax structure according to a sole proprietorship or even a corporation and partnership.

Cost for forming a New York LLC

If you are planning to form a limited liability company in New York then there will be certain types of costs associated with it including the initial formation cost as well as the New York LLC annual fee. The costs associated with a limited liability company include the following:

• You will need to reserve a business name prior to filing new business formation documents and the fee of the same is $20
• You will have to file articles of organization for forming a New York LLC and the costs associated with this is $200
• If you are planning to form a New York LLC then one of the important aspects is the publication requirement. You have to publish notices regarding the LLC formation in two local newspapers and the costs will vary according to the newspaper chosen. This is a one-time cost to form a New York LLC.

Annual maintenance cost for New York LLC

Apart from the initial costs of formation for a limited liability company in New York, there are certain other annual costs. The New York LLC annual fee includes several aspects related to the annual maintenance of the company and this is apart from the initial cost to form a New York LLC. The annual maintenance costs include:

• Business LicensesOnce you have filed the formation documents, your business will not be operational unless you have obtained the necessary licenses and permits. The cost will vary according to the type of licenses or permits and the number of licenses required. It is not a part of the cost to form a New York LLC but is considered as an annual maintenance cost because you will be required to renew your licenses each year.
• Biennial StatementOne of the important requirements of a New York Limited Liability Company is the Biennial Statement. The New York LLC annual fee for the biennial report is $9 and this report will be due every two years.
• AmendmentsIf you need to make any changes to the articles of organization then you will be required to file a Certificate of Amendment along with a fee of $60

New York Corporation Cost

A business corporation works differently from a limited liability company and other business structures but it does have its own advantages including the fact that it attracts investors. If you are planning to incorporate in New York then you can also leverage several state driven business incentive programs. So, what does it cost to form a New York Corporation? Let’s look at what forming and running a NY Corporation entails:

Cost of forming Corporation in New York

The cost to incorporate in New York is actually less than the cost to incorporate in several other top states in the country. The incorporation costs are basically initial costs towards new business formation or registration and include:

• You have to file a Certificate of Incorporation in New York and the filing fee is $125
• If you require an amendment or correction then you will be required to file the Certificate of Amendment along with a fee of $60
• You have to also reserve a business name using the Application for Reservation of Name along with a fee of $20. This is also an integral part of the cost to form a New York Corporation.

Annual maintenance cost for New York Corporation

The cost to form New York Corporation is an initial or one-time cost but there are certain costs that are recurring or annual in nature. Such costs are classified under the annual maintenance costs of a New York Corporation. The annual maintenance is important as it ensures your business is in compliance with all state laws. The maintenance costs include:

• Business Licenses – Once you have filed the necessary documents along with the cost to form a New York Corporation; you will need to apply for business licenses. Licenses and permits ensure your business can become operational or transact in the state. The cost of licenses and permits will vary according to the type of license being issued. It is also considered as an annual maintenance cost of a New York Corporation because you have to renew your licenses each year.
• Biennial Statement – A Biennial Statement also known as a Biennial Report is an important requirement of a New York business corporation. This report is due once every two years and the fee is $9.

Need any Assistance in Forming Your New York LLC or Corporation

If you are thinking of incorporating in New York or want to form a Limited Liability Company in the state then there are several aspects to consider related to new business formation. There are several initial formations and annual compliance requirements to fulfill and this can make the process complex. We, at IncParadise, can help in making the process simpler by handling your new business formation or incorporation requirements along with the state compliance.

LLC in New York

New York is the 3rd largest economy in the U.S and is home to 2.3 million small businesses, which is a great jump since 2008 when the number of small businesses was 439,660. A large number of small businesses have chosen the Limited Liability Company business structure due to the several advantages. Entrepreneurs prefer to start an LLC in New York due to the business climate and robust infrastructure. One of the top LLCs in the state includes the American Stock Exchange (AMEX) or NYSE MKT LLC, and it has been designed with flexibility and choices for growing startups as well as investors. When you form a New York LLC online, you can take advantage of the fact that this is the financial capital of the nation.

What is New York LLC?

If you are planning to register a New York LLC then it is important to identify how a limited liability company is defined. It is one of the most popular forms of business in the US and in New York. An LLC is considered owing to the numerous benefits it has over other business structures. There are different forms of a limited liability company that one can choose from and this includes:

• Sole Proprietorship or a Single-Member LLC
• Series LLC
• Multi member-managed LLC
• Anonymous LLC
• Manager-Managed LLC
• L3C Company
• Restricted LLCs

What are the benefits of forming an LLC in New York?

There are several reasons why entrepreneurs prefer to start an LLC in New York and one of the primary reasons is the benefits choosing this type of business structure offer. Some of the benefits offered by an LLC are:

• Protection – One of the primary benefits or reasons for forming a New York LLC online is protection. Since a limited liability company is a hybrid structure and shares certain unique features of a corporation, it simply means that an LLC is in itself a legal entity. Thus, members and owners cannot be held personally liable for any debts of the company and are protected against the same.
• Decision making – As an entrepreneur or a single owner, you can start a New York LLC as a single-member LLC. This has two main benefits, which are the ability to make your own decisions without the liability problems existing in a sole proprietorship.
• Avoiding double taxation – Once you form a New York LLC online, it is considered as a pass through entity, which means that there will be no double income taxation. In other words, the profit generated by the company will be taxed only once in the form of the individual income tax return of each member.
• Less paperwork – One of the salient aspects of a limited liability company is that there will be less paperwork as compared to other corporate entities.

Forming an LLC in New York

New York is one of the few states that has an aggressive economy and a pro-business environment. The state has just the right business, transportation, and logistics infrastructure to support small businesses as well as larger companies. If you are planning to start an LLC in New York then there are several processes involved in the registration and operation areas of the business. We have explained each relevant process in a step-by-step manner.

1. Choose New York LLC name

In order to start a New York limited liability company, one of the first steps is identifying a name for your business. A business name is like the identity of your company and all your marketing plans, customer or client initiatives, brand promotion activities, and new business formation will revolve around this name. There are certain LLC naming guidelines that you are required to follow along with New York LLC name search. The guidelines are:

• The chosen name should contain “limited liability company” or abbreviations like L.L.C or LLC pursuant to NY LLC L § 204 (2018).
• The business name should be distinguishable from the names of any domestic LLC, any authorized foreign LLC, and fictitious name or DBA of an authorized foreign limited liability company.
• The chosen name should also be distinguishable from the names of any domestic business corporation or not-for-profit Corporation as well as any other form of New York domestic corporations.
• The business name should not consist of any word, phrase, or abbreviation that is restricted or prohibited by any other New York statute.

2. Choose New York LLC registered agent

3. File Articles of Organization with the New York Department of State

Once you have thought of forming a limited liability company and have reserved your business name, the next step is to register a New York LLC. The formation of a limited liability company in New York is governed by the 2020 New York Laws, LLC – Limited Liability Company Law, Article 2 – Formation. In order to form an LLC, you will be required to file the Articles of Organization pursuant to NY LLC L § 203 (2020). The articles have to be submitted along with a filing fee of $200 and have to be mailed to the following address:

• Department of State
  Division of Corporations,
  State Records and Uniform Commercial Code,
  One Commerce Plaza
  99 Washington Ave.
  Albany, NY 12231-0001

You can register your LLC in New York Today!

4. Follow New York LLC publishing requirements

When you register a New York LLC, it’s important to ascertain what other state-based requirements or additional filings you have to fulfill. These additional filings can vary from one state to another and in New York, there is a publication requirement to fulfill. So, what does this requirement entail? As a part of NYC LLC publishing requirements, the state requires a newly formed limited liability company to publish a notice of formation for a period of six consecutive weeks in two newspapers as specified by the County Clerk in the county where the legal address of your company is registered. The publishing requirements pursuant to NY LLC L § 206 (2018) are as follows:

• You need to publish in a newspaper that is circulated daily
• You need to publish in a newspaper that is circulated weekly
• The LLC publication should appear once a week in both daily and weekly newspaper

• The name of the LLC
• The date of filing Articles of Organization to register a New York LLC
• The county where your LLC is located
• The business address of your company
• The purpose of the LLC
• The name of the New York LLC registered agent

5. Prepare New York LLC operating agreement

One of the important aspects to focus on before you start an LLC in New York is the operating agreement of a limited liability company. This is a type of official document, which outlines the various terms of an LLC in accordance with the specific needs of the owners. It also provides an insight into operational and financial decision-making in a structured way. The New York LLC operating agreement will be set in paper rules as well as expectations for the limited-liability company while ensuring credibility of the company as a legal entity. Depending on the type of LLC, you can create a single-member or multi-member LLC operating agreement.

• Organizational information like ownership structure
• Management and voting whether it is member-managed or manager-managed entity
• Capital contributions or money invested by each member
• Distribution of profits and losses
• Changes to the membership structure
• Dissolution

6. Obtain New York LLC EIN

An EIN is known as the Employer Identification Number or the Federal Employer Identification Number (FEIN). If you register a New York LLC then you may need to apply for and obtain an Employer Identification Number depending on the type of LLC. A single-member LLC without employees working like a sole-proprietorship may not require an EIN but an LLC with employees or a multi-member LLC will need an EIN. This is a unique 9 digit number that is assigned by the Internal Revenue Service (IRS) and is primarily used by businesses for tax reporting purposes. If you hire a New York LLC registered agent like IncParadise then we can help you obtain the Employer Identification Number (EIN).

Do you want to obtain an EIN in New York?

7. Obtain necessary business licenses and permits

Once you register a New York LLC, it becomes a legal entity but how do you make your business operational? This is where applying for and obtaining necessary business licenses and permits comes into effect. Every small business in New York doesn’t require a license and similarly, your business may require a single license or multiple licenses. The business license and permits in the state can be categorized as under:

• Industry-based – After you form a New York LLC online, you may search for licenses based on the industry your business is categorized under. Some of the industries that require licenses or permits include agriculture, business services, construction, education, finance, health, manufacturing, retail, and recreation among others.
• Local licenses or permits – This is a type of licensing or permit that is applied for and issued by the city or county your business is operating from. So, if you were to start a New York LLC in Suffolk County, NY then you will need to check with the Suffolk County Department of Labor, Licensing, & Consumer Affairs regarding licensing requirements of your business.
• Professional Licensing – Some businesses may require professional licensing especially for owners of such a company. If you want to start a Cosmetology clinic then you will need a professional Cosmetologist license offered through the Department of State.

7. Open a bank account

One of the key requirements that are often overlooked when entrepreneurs start an LLC in New York is that of a business bank account. First-time business owners especially of a single- member LLC may feel that their personal account should be adequate for handling business transactions. The fact is that if you use your personal account for business transactions then you may not be able to report your taxes correctly and this will not be beneficial as a long-term arrangement. A business bank account on the contrary will help you to segregate personal finances from those of the company and ensure clean maintenance of your account books.

8. Comply with taxes and other regulations

Once you start an LLC in New York you may be required to pay some form of tax in the state. Taxes actually vary from one state to another and also according to the type of business entity and hence the taxes filed by a limited liability company may not be the same as that of a corporation. Some of the important taxes collected in the state of New York include the following:

• Corporation franchise tax
• State Employer Taxes
• Sales and Use Taxes
• Withholding tax

Know more about starting a New York LLC!

If you are planning to start an LLC in New York, then you may be faced with several questions that need to be addressed. You may have questions pertaining to the cost of registering in New York, annual fee, disadvantages of forming in the state, New York LLC registered agent services, and much more. Hence, we have created this section of “Frequently Asked Questions” for addressing some of the most common queries that a startup or entrepreneur may have.

Is New York a good state to form an LLC?

There are several reasons why entrepreneurs prefer to start an LLC in New York and the most important are the benefits that small businesses and startups can leverage in the state. Some of the top benefits include:

• The state of New York offers new and existing businesses a wide variety of opportunities for finding talent, platform for making connections, expanding the business, and even trying out new ventures
• Once you form a New York LLC online, you will be able to take advantage of several types of business incentives including tax credit programs
• There is a diversity of industries where you can form your new business and achieve financial and economic growth
• The state has a strong transportation system and logistics environment, which provides the necessary support to startups and small businesses
• The state hosts numerous business-related events including seminars, funding events, and conferences for first-time and existing entrepreneurs
• There are 306 Qualified Opportunity Zones in the state where you can start a New York LLC to enjoy reduced taxes
• New York is home to foreign-trade zones (FTZ) and setting up your business here will provide benefits like duty deferral on imports, expedited shipments, zone to zone transfers, and inverted customs duty savings among others.

How do I know if my New York LLC name is available?

Once you have identified a business name, you need to conduct a New York LLC name search. The Department of State, Division of Corporations has a Corporation and Business Entity Database, which is basically a list of names of all types or forms of businesses registered or incorporated in the state. You can search this database using different fields like searching by entity name and entity type. This database also contains assumed name filings for limited liability companies, corporations, and limited partnerships. The search will help you to determine if your name is available so that you can apply for a reservation of the same.

How much does an LLC cost in New York?

If you want to register a New York LLC then there are certain formation costs attached to it. It is important to determine whether you are forming a domestic or a foreign Limited Liability Company as the cost of formation may differ. If you are forming a domestic LLC then the most important cost associated is that of filing the reservation of a name and Articles of Organization. The fee for filing Articles of Organization is $200 and that of name reservation is $20. Whether you form a New York LLC online or offline, there will also be a filing fee for the Certificate of Publication, which is $50.

Do I need a business license for my New York LLC?

Yes. Once you start an LLC in New York, the only way to make the business operational is by obtaining a business license. The type of license you require will depend on where your business is located, the type of business (e.g., nursing), and the industry.

Can I set up a single member LLC in New York?

There are two forms of member-driven Limited Liability Company that you can form and they are single-member and multi-member LLCs. You can form a single-member LLC in New York by filing the Articles of Organization with the Division of Corporations. We are one of the top registered agents in the state and can help you to form a single-member LLC.

What taxes does an LLC pay in New York?

Whether you form a New York LLC online or offline, you may be required to file state business taxes. The taxes levied on an LLC may also be different from other forms of business like a corporation or a general partnership. Your company may be required to file the following taxes:

• State Employer Taxes, if the LLC has employees
• Sales and Use Taxes if your LLC is selling goods
• Federal Income Tax.

Can I register a foreign LLC in New York?

Yes. You can register a foreign limited liability company in New York by filing the Application for Authority –Foreign Limited Liability Companies pursuant to NY LLC L § 802 (2020). The process to register a foreign LLC is also known as Foreign Qualification.

How do I dissolve my New York LLC?

Different businesses have different reasons for dissolving their company. After you start a New York LLC, if you want to dissolve the company then the only way to do it is by filing Articles of Dissolution of Domestic Limited Liability Companies pursuant to NY LLC L § 705 (2020). The dissolution articles have to be filed with the New York Department of State, Division of Corporations along with a statutory fee of $60.

Ready to form a New York LLC?

You can choose from a wide variety of business structures but one of the most popular forms is that of a Limited Liability Company. If you are planning to register a New York LLC then there is a registration process, which requires you to submit personal and business information as well as documentation. This is where IncParadise can assist you with the formation of your new business in the state.

New York Corporation

The economy of New York City is considered one of the largest in the country and is primarily driven by small businesses. There are several industries that are home to these small businesses and these industries are growing and expanding consistently. Today, some of the most notable corporations are headquartered in New York. The state not only attracts new businesses but also investors as it is considered to be the financial capital of the USA. This is one of the prime reasons why small business owners and entrepreneurs prefer to incorporate in New York. Some of the top corporations in the state include Loews Corporation, American Express, Aventura Technologies, Moody’s, MetLife, NASDAQ, CBS Corporation, and Time Inc. among others.

What is a New York Corporation?

If you plan to form a corporation in New York then there are primarily two forms of corporations to choose from. You can opt to form the traditional corporation also known as the C Corporation. Alternatively, you can elect S Corporation status as it offers tax benefits when compared to a traditional corporation. It is important to note that an S Corporation is not a business structure but an Internal Revenue Service (IRS) tax classification. If you are planning to form a C Corporation then you can register a New York Corporation online or offline. The other forms of corporations that you can form in the state include:

• Nonprofit corporations
• Professional Service Corporations
• Benefit Corporations
• Foreign Corporations

What are the benefits of incorporating in New York?

There are over 2.2 million small businesses in New York with a majority of entrepreneurs choosing to form a corporation in New York vis-à-vis other forms of businesses. There are several benefits of incorporating in New York including a great startup environment, robust infrastructure, and Foreign Trade Zones (FTZ) among others. Let’s take a look at the top benefits.

• Startup Ecosystem – One of the top benefits of incorporating in New York is that the state has an existing startup ecosystem. In fact, according to the Global Startup Ecosystem Report, the state is home to over 7,000 startups that are valued at over $71 billion. This is not all, the state is gradually moving towards a “Green Startups” platform with the objective of ensuring higher sustainability in the future.
• Business Tax Incentives – Once you register a corporation in New York, you will be able to benefit from the various tax incentive programs offered by different state agencies like the Department of Taxation and Finance. The incentives vary from one industry to another and include tax credits and exemptions. Some of the popular incentive programs include Investment tax credit (ITC), Exemption for tangible personal property, and Sales and use tax exemption.
• Global Business Center – One of the major benefits of incorporating in New York is that it is considered as a top financial hub for local startups as well as global businesses. Whether you want to start a local business or an international company, New York provides the right platform and target audience. You can even benefit from the Foreign Trade Zone Program (FTZ) for businesses in the export-import industry.

Starting a New York Corporation

New York offers plenty of opportunities and a pro-business environment backed by a logistics and transportation infrastructure and platform for funding and investors. If you have a business idea and want to benefit from these opportunities then you need to register a corporation in New York first. Let’s look at the important aspects of the process of forming a new business in the state.

1. Name New York Corporation

In order to incorporate in New York, one of the first steps is identifying a name for your company. A business name is integral towards the existence of a company as it separates your business from other businesses and is also used for marketing, branding, and sales. The process of new business formation revolves around your company name. There are certain business corporation naming guidelines that you are required to follow and they are:

• The chosen name should contain words like “corporation” or “incorporated” or abbreviations of any of these words like INC. or Corp. pursuant NY Bus Corp L § 301 (2020)
• The business name should be distinguishable from the names of any domestic corporation and the fictitious name of any authorized foreign corporation.
• The chosen name should also be distinguishable from the names of any domestic or foreign limited liability companies, domestic or foreign limited partnerships among others. The business name should not consist of any word, phrase, or abbreviation that is restricted or prohibited by any other New York statute like the board of trade or chamber of commerce.

2. Appoint New York registered agent

If you are planning to form a corporation in New York then one of the foremost requirements of the state is to hire and maintain a registered agent in the state pursuant to NY Bus Corp L § 305 (2020). You can opt for statutory designation of the Secretary of State as the agent for service of process pursuant to NY Bus Corp L § 304 (2020) or you can choose one of the top registered agents in New York like IncParadise.

3. Choose New York Corporation’s initial directors

One of the important requirements to focus on before you register a corporation in New York is choosing the initial directors pursuant to NY Bus Corp L § 701 (2020). Normally, the shareholders of the company will be responsible for the election of the board of directors and defining their term or tenure. The corporation’s initial directors may consist of one or more members pursuant to NY Bus Corp L § 702 (2020) and the numbers can be fixed or changed through the corporation by-laws.

4. File a certificate of incorporation with NY SOS

Once you have identified a business name, the next step is to register a corporation in New York. There is a process that you will be required to follow for incorporation that is governed by New York Laws, BSC – Business Corporation, Article 4 – Formation of Corporations. You will need to file the “Certificate of incorporation” pursuant to NY Bus Corp L § 402 (2020) and this document has to be signed by each incorporator and include their personal information like name and address.

Are you thinking of starting a New York Corporation?

5. Prepare bylaws for New York Corporation

When you form a corporation in New York, one of the important aspects to focus on is the preparation of the bylaws. There is no set content for corporate bylaws nor will you be required to submit this document with the New York Department of State. The objective of the bylaws is to set forth internal rules, regulations, and procedures that identify the existence, role and responsibility of a corporate office. Some of the other aspects covered in the bylaws are:

• Number of board of directors
• Shareholder meetings
• Statement of purpose
• Operational guidelines
• Power of officers, shareholders, and directors
• Plans for stock distribution

6. Get an EIN

If you are planning to register New York Corporation online or offline, there are certain processes that you need to complete to make the business operational. One such facet is that of applying for and obtaining an Employer Identification Number (EIN). This is a unique 9 digit number, which is issued to businesses by the Internal Revenue Service (IRS). It is also known as the Federal Employer Identification Number (FEIN) and is required for filing tax returns and also for opening business bank accounts.

7. Hold an organizational meeting

Once you form a corporation in New York, one of the first things to do is to conduct an organizational meeting. This is an initial meeting or the first meeting that is held by the incorporator or incorporators after you register a New York Corporation online. The importance and requirements of these meetings are governed by NY Bus Corp L § 404 (2015). The objective of the meeting is to establish a corporate structure for the company by appointing officers and initial directors. Organizational meetings are also important for adopting corporate by-laws.

8. Open a bank account

One of the important areas for any new company is starting a banking account. You can open a business banking account before or after you register a corporation in New York. You are probably wondering why you can’t use your personal bank account for the same and the truth is that using a personal account will make accounting and especially tax returns quite complex. There are numerous benefits of using a business bank account or checking account like:

• It will help in limiting your personal liability
• This account will provide financial protection to the business as well as the owner
• A business banking account will help you to track all types of expenses, monitor spending, and help avoid any unintended or accidental overspending.
• Having this type of account will give the right message to your customers including professionalism
• This is one of the benefits of incorporating in New York as there are several top banking institutions to choose from

9. Issue stock

If you incorporate in New York then one of the primary requirements is the issuance of stock. Every corporation formed in the state has to designate the number of shares the said company is authorized to issue and this has to be specified in the certificate of incorporation. You have to also indicate if the stock or shares are with or without par value. It is important to note that if you register a New York Corporation online then the authorized stock structure with no par value is 200 shares in New York according to the Department of State.

10. File New York biennial statement

Once you form a corporation in New York, there are different annual or even biennial requirements that a business has to fulfill in order to conduct business in the state. One of the important requirements is that of an annual report, which is known by different names in different states and as a biennial statement in New York. Once you register a New York Corporation online or offline, as a domestic or a foreign corporation, you will have to submit the biennial statement pursuant to NY Bus Corp L § 408 (2020). The statement has to be filed once every two years along with a filing fee of $9 to the NY Department of State and the submission ensures a good standing with the state.

11. Obtain necessary licenses and permits

Once you register a corporation in New York, it doesn’t mean that you have all necessary clearances for conducting your business in the state. In fact, you will be required to apply for and obtain the necessary business licenses and permits to make your business operational. If you register a New York Corporation online but operate your business without the required licenses then you may be penalized for the same. Your corporation may require a single license or multiple licenses and permits. The licenses in the state can be categorized as under:

• Industry-based – If you have been wondering how to form a corporation in New York, then one of the important aspects is licensing. Business licenses in the state are issued according to the industry your business is operating in like business services, agriculture, construction, finance, education, health, retail, manufacturing, and recreation among others.
• Local licenses or permits – When you incorporate in New York, you have to mention the city or county your business is based in. The licensing requirements are different for different cities and counties. If you are operating your business within the official limits of the City of Buffalo, NY then you will need to check their “License Applications & Code Requirements” specific to your business activity. If you were to start a bakery with a maximum of 25 employees or less then you will have to apply for a license with the City Hall along with the licensing fee of $220.
• Professional Licensing – Once you register a New York Corporation online your business may even require professional licensing depending on the type of business activity. There are over 32 professional occupations that are licensed and vary from home inspectors to real estate brokers and others.

If you want to know more about New York business licenses required by your company then you can avail of our Business License Research Report that provides detailed licensing information in New York.

12. Comply with other tax and regulatory requirements

Once you start an LLC in New York you may be required to pay some form of tax in the state. Taxes actually vary from one state to another and also according to the type of business entity and hence the taxes filed by a limited liability company may not be the same as that of a corporation. Some of the important taxes collected in the state of New York include the following:

• Business Corporation Tax
• Withholding tax
• Sales and use tax
• Other taxes like Employer Compensation Expense Program (ECEP) or Stock transfer tax.

Know more about starting a New York Corporation

As a first-time business owner or an entrepreneur, there are several facets to the state of New York when it comes to starting a business. If you want to incorporate in New York then you may have to confront a multitude of questions regarding incorporation and other aspects of the new company. Hence, we have created this section of “Frequently Asked Questions” for addressing some of the most common queries including how to form a corporation in New York as an entrepreneur or new business owner.

Why form a Corporation in New York?

New York, the center of the nation’s financial hub is considered by entrepreneurs as an excellent place for startups and small businesses. The state with a $1.751 trillion economy has many benefits to offer those who want to form a corporation in New York. Some of the top benefits of incorporating in New York are:

• Since it’s a financial hub; businesses enjoy access to investment capitalists and angel investors
• It is one of the densest populated cities in the nation and hence a bigger and more diverse customer base
• The state has a booming startup environment
• It has foreign trade zones and opportunity zones
• A wide variety of business incentive programs are offered by the state for small businesses and startups
• Availability of small business grants
• Accessibility to a pool of committed, professional and skilled workers

How do I know if my New York Corporation name is available?

Once you have chosen a business name in accordance with the rules, regulations, and prohibitions governed by NY Bus Corp L § 301 (2020), you will need to conduct a New York corporation name search. The Department of State, Division of Corporations has an extensive database known as the Corporation and Business Entity Database.

What will be the cost to form a corporation in New York?

If you want to register a corporation in New York then there will be certain formation costs governed by 2020 New York Laws, BSC – Business Corporation, Article 4 – Formation of Corporations. If you are planning to form a domestic corporation then you will be required to submit the Certificate of Incorporation along with a fee of $125. This has to be filed with the Department of State, Division of Corporations.

Can I register an S Corporation in New York?

Yes, you can register an S Corporation. You will need to first register a corporation in New York and then elect to be treated as an S corporation. The Internal Revenue Service (IRS) governs the election and specifies certain requirements required by a traditional corporation to qualify for S corporation status. You will be required to file the Form 2553 (Election by a Small Business Corporation) pursuant to section 1362 of the Internal Revenue Code.

Can I register a foreign Corporation in New York?

Yes, you can incorporate in New York as a foreign corporation and its formation is governed by 2020 New York Laws, BSC – Business Corporation, Article 13 – Foreign Corporations. As a foreign corporation, you will not be able to conduct business in the state until it is authorized or completes a foreign qualification. If you want to register a New York Corporation online as a foreign business then you will need to submit an Application for Authority for a foreign business corporation along with the filing fee of $225 pursuant to NY Bus Corp L § 1304 (2020).

How can I dissolve my New York Corporation?

Once you form a corporation in New York, you can conduct business in the state. At any given point in time, if you want to dissolve your company then you will be required to file a Certificate of Dissolution pursuant to NY Bus Corp L § 1003 (2020). There is a statutory filing fee of $60 and it has to be filed with the New York Department of State, Division of Corporations. It is important to note that you will require the consent of the New York State Department of Taxation and Finance prior to filing the Certificate of Dissolution.

Ready to Start a New York Corporation?

If you want to incorporate in New York then it is one of the best destinations for a startup or a new business. You can choose different types of business structures although the benefits of incorporation are higher as compared to some of the other forms of business. There is a definite process to register a New York Corporation online and this may require you to submit documents and include personal and business information and this is where a top registered agent like IncParadise can assist you.

Entrepreneur’s guide to form a business in New York

Whether you want to start a small business in NYC or a multinational corporation; the state has much to offer in terms of new business resources. It has the third-largest economy in the nation making its business climate vibrant and growth-oriented. The gross domestic product (GDP) of New York is $1.7 trillion with startups and small businesses making a high contribution overall to the GDP. An interesting aspect is that 67% of startups doing business in New York have expanded their operations by 2020 with food service establishments including restaurants accounting for 12 percent of such startups.

Why do companies prefer to incorporate and register in New York?

The 2021 small business profile by Small Business Administration (SBA) reveals that there are 2.3 million small businesses operating from the state. A lot can be attributed to the business opportunities and advantages the state offers. You can also start a small business in NYC to capitalize on the growth opportunities, business incentives, and several other benefits. Let us look at some of the advantages of doing business in New York.

• Tax Benefits – If you plan to start a business in New York then one of the top benefits is tax benefits and incentives that will help in easing the overall burden. There are several tax exemption programs for new businesses like the Accelerated Sales Tax Exemption Program (ASTEP), which aims to provide tax exemption to businesses in specific industries like manufacturing, industrial, food retail, and commercial. There are tax credit programs that you can take advantage of once you incorporate in New York like the New Markets Tax Credit Program.
• Professional Talent Pool – One of the most important requirements of any business is accessibility to local talent pools and this is one advantage you can leverage when you start a small business in NYC. It is home to some of the top universities in the nation including Columbia University, Cornell University, City University of New York (CUNY), and New York University (NYU) among others. One of the salient aspects is that New York also gets a rich talent pool from neighboring states or cities like Washington D.C., and Boston.
• Small Business Grants – If you are planning to start a business in New York then one of the key areas to focus on is the startup cost. The cost can be on the higher side depending on various supporting elements of your business like advertising, employee, rent or lease, utility, and New York business license. This is where small business grants can help bring down the initial cost or even the operational costs.

Steps to start a business in New York

Most startups and small businesses in the state of New York have been experiencing growth and are expanding at a faster rate than ever before. The state has achieved one of the lowest taxes in several decades, is home to an ever-growing talented workforce, and is attracting major investments and state-of-the-art innovations. These are key drivers of business climate and are considered essential building blocks for the progress of each business. You can start a business in New York in any industry but it is important to identify the key areas that will augment business operations in the future.

1. Prepare a New York Business Plan

If you are planning to start a business in New York then you need to identify the market, customers, risks, competition, and even the business formation and operational cost among other things. This can be made possible by formulating a business plan, which will also lead the way for an operational strategy. There are different types of business plans like a strategic business plan, start-up business plan, feasibility business plan, and operations plans among others. What you need is a start-up business plan as it will constitute various areas and elements of starting a business in NYC checklist. An ideal business plan will help you to minimize your overall risk and also pave the way for your strategic planning and prioritization. The various areas to focus on in order to create a strong business plan are:

• Executive Summary
• Synopsis of your business or startup
• Market overview
• Target Audience
• Products and Services
• Risk and Competition
• Revenue Model
• Operating Model
• Core Management Team
• Financial Plan

2. Attend Entrepreneurial Training or Development Programs in New York

You may have a brilliant idea but to actually implement it in the form of a startup or business can be quite demanding in terms of acquiring skills and knowledge pertaining to the very area of your business. If you have an idea and are planning to register a business in New York then it is important to understand how entrepreneurial training or development programs can further your cause. This type of program will help you to understand and identify the skills you possess and the skills and knowledge required towards making your business operational and successful. Hence, such programs should be an integral part of your starting a business in NYC checklist.

3. Choose a Business Structure for New York Business

One of the most important aspects, before you register a business in New York, is choosing the right business structure. In order to choose a business structure, you will need to identify your requirements and long-term objectives. For example: if you are looking for a structure that offers tax benefits then it is better to choose an LLC or an S Corporation. This is an important element of your starting a business in NYC checklist and you can choose unincorporated or incorporated business entities like:

• Limited Liability Company
• C Corporation
• S Corporation
• Sole Proprietorship
• General Partnership
• Limited Partnership
• Other business entities for Professionals

4. Naming Your New York Business

The identity of any new business is driven by its name as the name helps in creating brand value and increases brand recall. A good business name should take into account several factors. For example, it should be simple, short, and connected to the products or the services of the company. The uniqueness of a name is also a key factor as it will make your business stand apart. If you are planning to start a small business in NYC then there are certain legal naming requirements that you will be required to fulfill.

• The legal aspect of a business name will vary according to the type of business structure. For example, if you were to incorporate in New York then the corporate name will be governed by NY Bus-Corp L § 301 (2019). Similarly, if you were to register a business in New York as an LLC then the naming requirements would be governed by NY LLC L § 204 (2018).
• The New York business laws also govern the uniqueness of the business name. If you form a corporation then the name should contain words like the word “corporation” or “incorporated” and an abbreviation of any of these words like “Inc.” or “Corp.”. Similarly, if you were to form a limited liability company then the name should contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”.
• If you are planning on doing business in New York then the business name should be distinguishable from any other name existing in the database of the department of state, division of corporations.
• The laws for reservation or registration of a business name are different for different states. In most states, you are required to reserve a business name for a specific period including New York where you can reserve your business name for a period of 60 days by filing the “Application for Reservation of Name”.
• It is important to check business name availability prior to filing the name reservation application. Once you reserve the name, it will be easier to register a business in New York.

5. Choose a Location for your New York Business

A key element driving the success and growth of a business is the location of a business. New York is one of the best states for a startup but where in New York? New York, also known as New York City, has five boroughs, which are Manhattan (New York County), Queens (Queens County), Brooklyn (Kings County), Staten Island (Richmond County), and the Bronx (Bronx County). Each of these locations has its advantages and disadvantages but certain aspects are common for each of these counties. The aspects to consider before you start a small business in NYC are:

• Transportation – One of the foremost requirements for businesses especially in the manufacturing, retail, wholesale, and food industry is that of transportation infrastructure. New York has a complex but dense transport infrastructural system, which connects it to the other states as well as the rest of the world. The easy access to varied transport and transit systems will ensure you are able to start a business in New York and operate it without any hiccups.
• Accessibility – This aspect is important especially when it comes to employees and clients. The location of your office should be in a place that has parking space or accessibility to a mass transit system.
• Security – This aspect is an integral part of your starting a business in NYC checklist and you need to consider a location that is a low risk and low crime zone like the Bronx is a higher risk zone as compared to Manhattan South.
• Skilled Workers – There are certain areas in New York where finding skilled workers are more as compared to other locations. The requirement of skills varies according to the type of business for example Brooklyn has too many food establishments and hence it will be easier to find employees with certain skills like a Sous Chef or a Kitchen Manager.
• Demographics – Your target audience will drive your business. Hence, it is important to start a small business in NYC at a location that has a higher demographic or is accessible for your target audience.

6. Register Your Business with New York Department of State

New York with a $1.751 trillion economy and several rapidly growing industries like manufactured goods, commodities, and minerals, is considered as one of the favored destinations by entrepreneurs to start a small business in NYC. As an entrepreneur, you can choose from a wide variety of business structures available although some of the most popular forms of doing business in New York include a corporation, Limited Liability Company, and sole proprietorship.

We can help you to start a new business in New York

7. Get Your EIN

One of the important requirements for first-time entrepreneurs or new business owners planning to start a business in New York is the Employer Identification Number (EIN). It is important to understand that not all forms of businesses require an EIN but if your business has employees or if you are filing tax returns like employment or excise then you will be required to apply for this Federal Tax Identification Number (FEIN). The FEIN is issued by the Internal Revenue Service (IRS) and it is a unique identification number that will help in the filing of annual tax returns and offers several other benefits to small businesses.

8. Open a Business Bank Account for New York Business

When you start a business in New York, you will need to use a bank account for business-related expenses and the same account can also be used for receiving payment from customers, vendors, etc. If you are thinking whether to use the existing personal banking account then there are several disadvantages. One very salient fact is that mixing personal and business expenses can bring about complexities in the filing of tax returns. On the contrary, there are several benefits of having a business bank account. For example:

• It helps towards maintaining your business records in an organized manner
• It will help in building a business credit rating
• A business bank account will ensure easy filing of taxes
• Business bank accounts enable operations of point of sale systems for retailers

9. Obtain the Necessary New York Business License and Permit

Once you register a business in New York, there is one more important step that you need to take to make the business operational. You will have to apply for and obtain a business license. As a new business or a startup, you may require a single license or multiple licenses and permits depending on the type of business. Most licenses are issued at the state level but you may have to apply for and obtain local licenses depending on where your business is situated. Permit and licenses in New York can be categorized as under:

• Industry-based Licensing – There are specific industries that require businesses to obtain a license prior to starting operations. You can apply for a New York business license if your business is categorized under any of the following industries:
  • Agriculture
  • Transportation
  • Health
  • Recreation
  • Manufacturing
  • Construction
  • Specific Businesses like real estate broker
• Professional Licensing – If you are planning to start a small business in NYC where professional or occupational skills are required then you may need to obtain a professional license before applying for a business license. As an example, if you plan to open a business dealing with various aspects of Athletic training like management of athletic injuries, and conditioning, and reconditioning activities then you will have to apply for licensure by filing the required application along with a fee of $158. The fee for a New York business license for different professions will vary accordingly.
• Local Licensing – Once you register a business in New York, you need to check with the local authorities of the city or county your business is based in for licensing requirements if any. Each county or city has its own ordinances and licensing requirements and hence the licensing rules, ordinances, application, fees, and renewal in Suffolk County will be different from that of Richmond County. The local licenses and permits in addition to a state, industry, or New York business license.

10. Get Business Insurances

One of the important areas that most startups and new businesses need to focus on is business insurance. You may be asking yourself about the need for business insurance if you are planning to start a business in New York. The primary reason why insurance is recommended is that there is always a high probability and risk of business liability also known as a commercial liability. When a liability claim is made against your business then good business insurance will help in covering the cost of such claims. Some of the different types of insurance recommended if you plan on doing a business in New York are:

• Business liability insurance
• Business income insurance
• Workers’ compensation insurance
• Insurance specific to industries
• General liability insurance
• Product liability insurance
• Commercial property insurance
• Business owner’s policy for home-based businesses

11. Annual and Ongoing Requirements

Once you register a business in New York, in order to keep your business active; you will be required to ensure all annual and ongoing requirements are met. The annual requirements may vary according to the type of business structure although there are certain requirements that are common for all. Let’s look at the various annual requirements applicable if you incorporate them in New York.

• Annual Report – Most states in the USA require businesses to submit some form of report annually and they are known by many names like annual report, statement of information, etc. If you are doing business in New York as a corporation or an LLC then you will be required to submit a Biennial Statement once every two years with the New York Department of State – Division of Corporations. It has to be submitted by the end of the incorporation or registration anniversary month and IncParadise can help you in filing the New York Annual Report.
• Tax – One of the important annual filings is that of a tax return. The type of taxes you will be required to file will vary according to the business structure. The most common forms of taxes in New York are:
  • Business Corporation Tax
  • Sales and Use Tax
  • Withholding Tax
  • Pass-through entity tax (PTET)
  • Other taxes and reporting requirements
• Business License – You will be able to start a business in New York and make it operational only after you have obtained a business license. You may require a single or multiple licenses and permits depending on the industry and the county your company is based in. Once a New York business license is issued, it has to be renewed annually as non-renewal can lead to penalties and you may not be able to conduct business in the state.

Some Important Quick Resources for New York Business

Once you have a business plan in place, you can go ahead and begin the process to register a business in New York. You will need to conduct research pertaining to various aspects of doing business in New York right from identifying the right location to information on business laws and even entrepreneur training and business incentive programs. How do you find this type of information? There are several state-based resources available and we have compiled this list so that you can find the information you need.

New York State Department of State

The New York State Department of State (NYSDOS) consists of several divisions and provides information pertaining to how you can start a business in New York. The state department is a valuable resource for every entrepreneur or business owner as you can access information and also apply for several new business-related services including New York business license, renewal of license, business entity database, apostille, online filing of new business registration, local laws, and training information.

• Secretary of State
  One Commerce Plaza,
  99 Washington Ave
  Albany, NY 12231-0001
  Phone: (518) 473-2492, (518) 474-4429
  Fax: (518) 473-6648
  Website – https://www.dos.ny.gov/

New York Department of Taxation and Finance

The NYS Department of Taxation and Finance is one of the important departments of the state government and is primarily responsible for state taxation and revenue. Once you register a business in New York, you can search through a repository of information related to income taxes, business taxes, forms and instructions, tax bulletins and other publications, online services like Business tax account update (DTF-95), and Sales tax advance payment, and even options to register for sales tax when you incorporate in New York.

• New York Department of Taxation and Finance
  Harriman Campus Rd,
  Albany, NY 12226
  Phone: 518-485-6027
  Website – https://www.tax.ny.gov/

Division of Licensing Services

The Division of Licensing Services is a department within the Department of State and focuses on providing information to new and existing businesses on all aspects of licensing. Once you have filed registration documents to start a small business in NYC, you can check with the Division of Licensing Services for different state licensing applications and fees, New York business license regulations, licensing requirements, license renewal, and request license history or certification among others.

• Division of Licensing Services
  1 Commerce Plaza
  99 Washington Avenue, 6th Floor
  Albany, NY 12231
  Phone: 518-474-4429 or 711(TTY)
  Email: licensing@dos.ny.gov
  Website – https://dos.ny.gov/licensing-services

New York Division of Employment and Workforce Solutions

The New York Division of Employment and Workforce Solution is also known as the Department of Labor and is responsible for providing guidance and information on various aspects of labor and employment. If you are planning to start a business in New York with employees then this website can provide detailed information related to key areas like recruiting your workforce, how to trim labor costs through various workforce & economic development programs, HR and health & safety consultation services. You can also access information related to immigrant policy and affairs, wage and hour laws, and industry-specific labor laws.

• NYS Department of Labor
  Building 12
  W.A. Harriman Campus
  Albany, NY 12240
  Phone: (518) 457-9000 | (888) 4-NYSDOL (888-469-7365) | 711 TTY/TTD
  Website – https://dol.ny.gov/

NYC Small Business Resource Center

The NYC Small Business Resource Center provides valuable online resources in information format to entrepreneurs planning to start a small business in NYC. It constitutes a huge online library, where you can find information pertaining to business plans, business projects, and access to several programs like the customized training programs, and commercial lease assistance program. If you are planning to incorporate in New York then the incubators and workspaces network, Empire State Development’s small business hub, and the Gale virtual reference library database can be highly beneficial.

• NYC Small Business Resource Center
  18 West 53rd Street
  New York, NY 10019
  Phone: (212) 714-8400
  Website – https://www.nypl.org/help/services/smallbiz

New York Business State Incentives

The New York Business State Incentives is a division of the New York Business Express and its primary objective is to provide you with information on the various business incentives available in the state that you can benefit from. You can take advantage of these incentive programs after you register a business in New York. You will be required to create a business profile on the website to get a list of incentive programs customized for your company or industry. The website has more than 70 different business incentive programs on its database and can be quite helpful for doing business in New York.

• New York State Business Information Center
  Phone: (518)-485-5000
  Website – https://www.businessexpress.ny.gov/app/iw/startnewincentive

New York Department of Environmental Protection

The New York Chamber of Commerce was founded in 1768 and its mission is to help in improving the overall business climate as well as the quality of living in the state of New York. They provide guidance and information on various aspects of doing business in New York. For example, the promotion of a small business through the business listing, Trade Advocacy, Networking, and Educational Events, and much more.

• New York State Chambers of Commerce
  20 West 44th Street, 4th Floor
  New York City, NY 10036
  Phone: 212-CHAMBER (212-686-7220)
  Email: info@chamber.nyc
  Website – https://www.chamber.nyc/

Ready to start business in NYC?

New York is a state favored by entrepreneurs and first-time business owners for establishing their company or startups. If you want to register a business in New York and are wondering how to go about the process then IncParadise can provide customized and professional guidance and assistance. We are an expert registered agent and incorporation service provider in New York and have already helped thousands of businesses in New York in starting their LLC or corporation.