Wednesday, February 21, 2024

How To Start A Sole Proprietorship In Ny

How To Start A C Corporation In New York

How to become a Sole Proprietor/Business Owner

Step 1. Select a business name for your corporation.

  • So that people know what type of business theyre dealing with, New York law requires that a corporations name include the word Incorporated, Corporation, Limited or, alternately, one of the following abbreviations: “Inc.,” “Corp.” or “Ltd.” Further, there are a number of specific words that cannot be included in the name without prior approval. For a full list of prohibited words, see N.Y. Bus. Corp. Laws § 301.

Step 2. Check to see if your business name is available.

  • To help prevent confusion, your corporations name must be distinguishable from the names of other business entities already registered in New York. The Department of State offers a searchable online database of the names already reserved.

  • However, because the database might not be complete, you should also search for the availability of a proposed business name by writing to: Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.

  • The written inquiry should state that you wish to determine the availability of a name and list the name or names to be searched. The request must be accompanied by a $5 fee for each name to be searched. Unfortunately, searching the availability of a corporate name does not guarantee you the name, only that it is available.

Step 3. Appoint a director or directors for the corporation.

Step 4. Prepare and file a certificate of incorporation with the Department of State.

References And Other Useful Information

Tax Law: Sections 631 632 633 and 638

Regulations: Sections 132.2 through 132.16 132.21 and 138.6


TSB-M-09I, Amendment to the Definition of New York Source Income of a Nonresident IndividualTSB-M-10I, Income Received by a Nonresident Related to a Business, Trade, Profession, or Occupation Previously Carried on Within New York State


Examples Of Good Businesses To Start In New York

New York State has a wide variety of industries both in its most well-known city and the rest of the state. Its home to agriculture , manufacturing , mining , and service providers .

IBM, Deloitte, PepsiCo, JPMorgan Chase, and PricewaterhouseCoopers are the top businesses in the state. The best small businesses to work for include Giant Machines, Eden Health, 7Park Data, adMarketplace, Alloy, and Catalyst Software. Consider starting up a New York company that serves those businesses or competes with them. Auto repair shops, consultancies, food trucks, coffee shops, and boutiques are all good businesses to start in the state.

Also Check: How Much Do Solar Tubes Cost To Install

Do You Have To Register Your Business If You Are A Sole Proprietor

Unlike corporations or limited liability companies, sole proprietorships are among the easiest types of businesses to start. You do not have to register with the state like corporations and limited liability companies. As a business owner, however, you must obtain the required permits and licenses to operate legally, and you are personally responsible for any debts, lawsuits, or taxes incurred by the business.

New York Business Faqs

How to Set up a Sole Proprietorship in New York: 7 Steps
  • What is a good city to start a business in New York?

    Obviously, New York City offers an incredibly large and diverse workforce. Other cities in the state to consider include its capital, Albany, as well as Syracuse, Buffalo, and Rochester.

  • What business and tax regulations are compulsory for an LLC business in New York?

    New Yorks Department of Taxation and Finance can assist with determining which taxes and regulations apply to your specific business.

  • New York Small Business Services

    Read Also: Do Solar Panels Work With Moonlight

    How Much Does It Cost To Register A New York Dba Name

    Fees to register a DBA name with the New York State Department of State are quite costly for corporations. Total fees rise to $1,950 when the corporation does business in multiple counties. However, there is no county fee for LLCs or limited partnerships. Requests for certified copies are $10 each, and additional county trading fees are $100 each. Additional charges are levied if you want the registration to be done quickly. Costs for expedited registration range from $25 for 24-hour service, $75 for same-day registration, and $150 for two-hour processing.

    This also doesnt include fees for county registration if you are a general partnership, sole proprietorship, or limited liability partnership.

    Business Carried On Partly Within And Partly Outside New York State

    Your business, trade, profession, or occupation is carried on partly within and partly outside New York State when any of the business activities described above are systematically and regularly carried on within New York State, and any of those activities are systematically and regularly carried on outside of New York State, or any of those activities are systematically carried on both within and outside New York State.

    If your business, trade, profession, or occupation is carried on both in and out of New York State, items of income, gain, loss, and deduction included in New York source income must be apportioned and allocated to New York on a fair and equitable basis in accordance with approved methods of accounting.

    You are not permitted to allocate any business income outside New York State if:

    • your business only has occasional or isolated transactions outside the state, or
    • you have no regular place of business outside the state.

    You May Like: When Should A Baby Start Solid Food

    How To Start A Business In Ny: The Final Word

    We cant guarantee that your business will join the likes of BuzzFeed, WeWork, and other unicorn club members. But we can assure you that following the previous eight steps for starting a business in New York can help establish a strong foundation for your own New York-based venture.

    This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

    About the author:Caroline Goldstein is a freelance writer, specializing in smallbusiness.Read more

    What Is A New York Doing Business As Name

    Should you be a Sole Proprietor or LLC? The Pros and Cons you Need to Know

    DBA names are referred to as many things, such as fictitious name,trade name, or assumed name. New York officially uses the term assumed name.

    Even though a DBA name is not an officially recognized legal entity, if you trade under a name other than your legal one, you must register it. The exception is general partnerships, which must file for an assumed name even if they plan to operate under their legal names. Also, a DBA name does not impact taxation. It is simply an alias under which your business can trade.

    Often, two distinct business groups seek DBA names. These are:

    • Sole proprietorships and partnerships: These businesses may want to use a DBA name to protect their privacy. With a DBA name, the business would be referred to as the alias instead of the owners personal name. However, keep in mind that general partnerships are required to file for an assumed name even if they plan to operate under their legal names.
    • Corporations and limited liability companies : These business entities may want to use a DBA name to launch a new product, drop an entity designator, or use a name that more accurately represents their business.

    Some of the advantages of trading under an assumed name in New York include but are not limited to:

    Read Also: How To Calculate Batteries For Solar System

    Obtain Business Licenses And Permits

    Depending on your businesss nature, you may need to get a business license or professional license. A full list of the required licenses and permits for New York businesses can be found here. You will also need to ensure that your business is not subject to federal licensing. Visit the business license page for a full list.

    Outside of state-level licenses and permits, city and county regulators also issue licenses and permits. Common types of licenses and permits issued at the local level include building and occupational permits, signage permits, zoning clearances, and safety and health-related permits.

    The business licensing process can be quite complex depending on your business, so you may want to opt for a business license research package. These services are conducted by business licensing and permitting experts who will provide you with an exhaustive list of the business licenses and permits your specific business will need.

    How To Establish A Sole Proprietorship In New York

    In New York, you can establish a sole proprietorship without filing any legal documents with the New York State Government. There are four simple steps you should take: Choose a business name. File a fictitious name certificate with the county clerks office. Obtain licenses, permits, and zoning clearance. Obtain an Employer Identification Number.

    Recommended Reading: How To Build A Solar Panel From Scratch

    How To Set Up A Small Business In New York: Sole Proprietorship

    by Candy Gong and Kazusa Nakamura | Feb 9, 2021 | Small Business Creation |

    Congrats! Youve decided to start a business. Whats next? One of the first questions youll be asked is what type of business entity youd like to conduct business under. The options include a Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Partnership, Limited Liability Company, C Corporation, S Corporation and finally a Professional Service Corporation.

    In this first in a series of articles, well cover the first option: Sole Proprietorship. The laws vary by state, so for the sake of this piece, we are sharing information for those doing business in New York City or State. If you intend to conduct business across state lines, depending upon the nature of how that business is conducted, you may have an obligation to file in other states.

    What is sole proprietorship?

    Many solopreneurs set up their businesses as a Sole Proprietorship. The definition of a Sole Proprietorship, for tax purposes, is that you own an unincorporated business by yourself. The business exists until the retirement or death of the owner. The downside of doing business as a Sole Proprietorship is that you dont have any legal protection. If you get sued or go into bankruptcy, your personal assets, such as your home or car, are not protected.

    Steps to setting up your small busniess as a sole proprietorship

    What tax forms do I file as a solopreneur?

    NYC Unincorporated Business Tax

    Determine Your New York Business Costs

    How to Set up a Sole Proprietorship in New York: 14 Steps

    Its important to calculate your business costs before starting a business in New York as this is one of the more expensive places to do business. In a U.S. Bank study, poor cash flow management/understanding of cash flow contributed to a whopping 82% of business failures. An early step of creating healthy cash flow is accounting for every cost that will be accrued. Then youll be able to see what cash must remain on hand at all times, when cash will come in, when expenses will outstrip income, etc.

    As you create a list of projected costs, perhaps categorize them as fixed, ongoing, or one-time.

    • Fixed costs dont change regardless of your sales volume. Think insurance, attorneys, accountants, and rent. Fixed costs can be really high in New York, so be sure to account for them in your list.
    • Ongoing expenses fluctuate with your sales volume. These include the costs to make your product or provide your service.
    • One-time costs include what youll purchase just once, such as computers and office furniture.

    Unsure about whether youre estimating the right amounts? The New York Small Business Development Center provides counselors free of charge who can help walk you through the process of listing your business costs.

    For starters, estimate the price to start a small business.

    What are your fixed costs? Fixed costs may change over time but are stable for set periods, such as an annual lease. They include insurance, utilities, leases, and mortgages.

    Also, consider:

    Read Also: How To Make Sole Proprietorship Into Llc

    Doing Business As Names

    If you have chosen a name for your business that is not your legal name you must, register your DBA with Onondaga County. At the time of this writing, it costs $30 for your DBA. You can print out the application yourself, or pay $1 for a copy at the County Clerks Office.

    Applying for your DBA is the first piece of paperwork that most business owners will officially file. It’s best to finish writing a business plan, planning your finances, and selecting a location before you file. The application isn’t free and you’ll have to file more paperwork if you want to change your name later.

    How To Register A Business In New York State

    Is starting a business in New York your American dream? Thats terrific, but get ready to jump through some hoops. New York businesses must be registered. Youll need forms, certificates, and licenses from multiple regulatory agencies.

    Complete Payroll is here to make your life easier. Below is a step-by-step guide, plus links to important forms youll need to register a new business in New York. Also, if you’re ready to set up payroll to get your employees paid,

    Also Check: Is 14k Solid Gold Real

    Can I Pay Myself A Bonus From My S Corp

    If an S Corp officer has paid themselves a reasonable salary, the best way to pay out year-end profits is a distribution. An S corp bonus has to be run through payroll and its subject to Social Security and Medicare taxes. But that deduction applies only to leftover business income, not wages or bonuses.

    How To Set Up A Sole Proprietorship In New York

    How to start a business vol 3! Sole proprietor or LLC!?

    This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. wikiHow’s Content Management Team carefully monitors the work from our editorial staff to ensure that each article is backed by trusted research and meets our high quality standards.There are 13 references cited in this article, which can be found at the bottom of the page. This article has been viewed 48,532 times.Learn more…

    Its easy to form a sole proprietorship in New York. Typically, you can just start working under your legal name and pay business taxes using your Social Security Number. However, some people will need to obtain other licenses or permits, and youll have to jump through more hoops if you intend to hire employees.

    Also Check: Is Tesla Solar Roof Worth It

    How To File A Dba In New York

    Filing a New York DBA , also known as an assumed name, is a simple process done at the county level or with the New York Department of State depending on your business structure.

    Follow our step-by-step How to Get a DBA in New York guide to get started today.

    Important: A DBA is only used for branding purposes. A DBA isn’t a type of business structure and won’t protect your personal assets.

    Forming an LLC is the best choice for most small businesses. Visit our DBA vs LLC guide to learn what types of businesses need limited liability protection.

    How to Use This Guide

    First, Choose Your Business Type:


    How Much Does A Dba Cost In Ny

    DBA filing fees vary depending on the location of the business and the business type.

    Sole proprietor and partnership DBA fees are assessed by the county where the business is located. You must access your county directly for specific fee information. You can do this online or by calling the county clerk. You can find your counties’ contact information on the website.

    Fees for incorporated businesses like LLCs and corporations are as follows:

    $25 for the Certificate of Assumed Name$10 Certified Copy of Certificate of Assumed Name$150 2-hour processing, $75 Same day, $25 within 24 hours

    Additional Fees For Corporations Only

    $100 for each NYC county where the business is or will be conducted within New York City $25 for each county where the business is or will be conducted outside New York City$1,950 to include every New York State county and the Certificate of Assumed Name combined

    Also Check: How Much Electricity Does A 100 Watt Solar Panel Produce

    What Are 2 Advantages Of A Sole Proprietorship

    Advantages of a sole proprietorship

    • Sole proprietorships are easy to establish.
    • You can protect the name of your sole proprietorship.
    • Theres no limit to the number of people you can hire.
    • You have complete control as the owner.
    • Sole proprietorships are often a stepping stone to incorporation.
    • Personal liability.

    Saving Money With Low Startup Costs

    How to Start a Sole Proprietorship in New York

    Formally registering a business entity involves many different fees and startup costs to get up and running. Filing fees will vary depending on your state of incorporation. Fees range from as little as $50 to as much as $725.

    In a sole proprietorship, you wont have to register your business with the Secretary of States office, so these fees wont apply to your business.

    Recommended Reading: How Much Solar Panel Is Needed To Power A House

    To Establish A Sole Proprietorship In New York Here’s Everything You Need To Know

    In New York, you can establish a sole proprietorship without filing any legal documents with the New York State Government. There are four simple steps you should take:

  • Choose a business name.
  • File a fictitious name certificate with the county clerk’s office.
  • Obtain licenses, permits, and zoning clearance.
  • Obtain an Employer Identification Number.
  • To find out how to establish a sole proprietorship in any other state, see Nolo’s 50-State Guide to Establishing a Sole Proprietorship.

    1. Choose a Business Name

    In New York, a sole proprietor may use his or her own given name or may use a trade name. If you plan to use an assumed name or trade name, state law requires that the name be distinguishable from the name of another company currently on record. It is also a good idea to choose a name that is not too similar to another registered business because of common and federal law trademark protections. To make sure your business name is available, run a search in the following government databases:

    2. File a Fictitious Business Name

    If you use a business name that is different from your legal name, New York requires you to file a certificate of fictitious business name. This is a mandatory requirement in New York. To file your fictitious business name, you must fill out an application available from the county clerk’s office in the location where you intend to do business. The filing fee will vary depending on the county.

    Next Steps

  • Trade
  • Popular Articles
    Related news