New York City is one of the top destinations in the world to do business. Its rich and diverse economic landscape invites businesses and entrepreneurs. When we talk of doing business in New York, you’ll find an array of advantages: tax-based incentives, personal asset protection, positioning for growth, credibility as a business, the ability to raise capital, and industry partnerships fostering development. New York City is one of the best cities to tap into when it comes to starting a business.
Whether you are considering forming an LLC or incorporating your business, New York City is the destination from where you can reach out to national and international markets.
Main steps to start your business in New York
To form a company in New York, you need to take the following steps:
- Create a business plan: this is the most important step when starting a business in New York.
- Choose entity type: when establishing a company in New York, there are several entity types to choose from: limited liability companies (LLCs), limited partnerships, corporations, and others. Corporations and LLCs are the most common entities in New York and they feature the following characteristics:
- Corporation: corporation must have at least one director, its directors must be at least 18 years old, and its directors are not required to be residents of New York or shareholders of the corporation – unless stated otherwise in the Certificate of Incorporation or bylaws.
- LLC: LLCs must determine whether the LLC will be managed by the members or managers. LLCs must have one or more members/managers, and the names and addresses of members/managers do not have to be listed in the Articles of Organization.
- Choose the company’s name: You must choose a suitable name for the business, and the name must be recognizably different from the names of other business entities already on file with the New York Secretary of State.
- Prepare and file formation documents: a Certificate of Incorporation for corporations or Articles of Organization for LLCs need to be filed with the Department of State. Corporate bylaws, which are internal corporate documents that set out the basic ground rules for operating your corporation, should also be prepared.
- Obtain Employer Identification Number (EIN): the company must obtain a federal employer identification number. In New York, this will also serve as your State Tax Identification Number.
- Open a bank account in New York: keeping the company’s finances separate from personal accounts is highly recommended and required to show that the assets of the business are separate from the company owner’s assets. To apply this practice, you have to open a business bank account for your LLC or corporation.
- Obtain necessary licenses or permits to start your business (restaurant or else) in Big Apple : permits and business licenses are required for most types of businesses to operate legally and meet government standards.
- Hold an official meeting: you must hold your first meeting of the company’s board of directors at which the directors can assign corporate officers, adopt bylaws, select a corporate bank, set the corporation’s fiscal year, and adopt an official stock certificate form and corporate seal. This is a legal meeting and must be recorded as such.
Also remember your reports, tax filings, and other obligations.
Are you thinking of incorporating your company in New York? – Let’s go ahead and contact your Damalion expert now.
