If you are an ambitious New Yorker wanting to set up a Website Redesign Company, for instance, you may be curious about the process of starting Small Businesses in New York by yourself.
We will not blame you. Besides name-dropping, we will give you some statistical proof of New York’s flourishing entrepreneurial ecosystem. According to the Small Business Profile of “SBA 2018”, small businesses made up 99.9% of all Empire States businesses. And by the end of 2017, the country’s economy grew at an annual rate of 4%. This shows it was much faster as compared to the national average of 3.4%.
So, are you inspired? In this blog, we will walk you through the eight crucial steps it takes to set up a business in New York. This way, you can join the dynamic entrepreneurial community of the Empire State.
A Step-By-Step Guide – Starting A Business In New York
Create A Business Plan
This might not be what you want to hear, but at times, patience actually is a virtue. And setting up a business in New York or anywhere just so may be one of those times.
So while you may be eager to get your business idea off the ground, just take a moment to get your bearings and create a business plan. This roadmap will surely guide you from exact point A to point B and probably beyond. When you unavoidably make an unexpected turn, you will thank yourself for it.
Your initial business plan must address at least the following:
- A detailed description of your service or product, also pricing. What pain points does your unique business address?
- How your service or product makes itself stand out from the competitors
- Management and ownership structure of your business
- A hiring plan, if it is necessary
- A brief overview of your target market
- How you can draw in and retain your prospective customers
- How much money do you currently have?
- How much money do you need to launch?
- The time it will take in order to break even
- How long it will take in order to make a profit
- Which Best Branding Services you will invest in to reach the top
Remember that your business plan is also a living document. To start, just aim to be as detailed as possible. Keep in mind that you can always dive back in to make additions and adjustments as you garner experience, traction, and funds.
Select A Business Name
Your business name is among the most critical aspects of your business. When you do successful branding by leveraging the best branding services, it shows your customers who you are, what you provide, and how your customers feel when they support your business. This is not a job to take lightly, but it is also the most creative aspect of setting up a business.
Once you have decided on a business name, you will need to make sure it is available for use across some platforms. Most importantly, look for the New York Business Entity Database. And through New York’s Secretary of State, search a business entity name to make sure the name is not already in use by the other New York business. But if it is, then you will not be able to move on registering your business. So, you will have to return to the drawing board. We also recommend running your business name through a trademark search on the website of U.S. Patent and Trademark.
Then, run a Google Search to make sure a competing business is not using a similar name or your dream name, either in New York or somewhere else. Lastly, check that your Website Domain Name and Website Hosting are available. If it is so, then buy it as soon as possible! This way, you can create your business site and start driving traffic immediately.
Once you have cleared all these obstacles, you are ready to register your business with the New York state.
Select A Business Entity And Register Your Business
Epic Guide For Small Businesses In New York. Selecting a business entity is an important step in starting your business in New York. The entity you opt for will determine how you are taxed, your degree of legal protection, and your management and ownership structure. Your registration process will also vary depending on your business entity.
In New York, some of the most common business structures are partnerships, sole proprietorships, LLCs, and corporations. Among those structures, LLCs are more popular as they are easy to form, maintain, and provide owners with legal protection.
We always recommend consulting financial or legal professionals. They help you determine what type of business structure makes more sense for your certain business. You can also look at the new business checklist of New York’s Business Express. This way, you can learn more about what each business structure includes, how to register yourself with the state, how much the formation cost will be, and their ongoing improvements.
Moreover, using this business checklist will give you personalized, step-by-step guidance to start a business in New York. The amazing thing is – it takes about only 10 minutes to fill out.
Get Your EIN And Register For Taxes
Before you start conducting your business in New York, you must register with New York’s Tax Department. It is also a great idea to familiarize yourself with your local tax and state requirements. This may vary depending on the business type you are running. For example, companies that offer Flyer Design Services need to collect a sales tax and get a certificate of Authority. Also, businesses in New York City are subject to business income and excise taxes. You can look at New York’s Department of Taxation and Finance site to read up on your tax obligations.
However, you should apply for an EIN with the IRS website, which you will need to file the payroll tax return or income tax return of your business. You will also need an EIN to apply for a business credit card, open a business bank account, apply for business down the line, and hire employees. Here, the only exception is sole proprietorships, which can use the owner’s social security number instead of EIN.
Obtain Licenses, Permits, Insurance, And Employer Information
Before starting a website redesign company or any other in New York, owners must obtain the appropriate licenses, permits, and certificates for their lines of business. If you have completed a new business questionnaire for New York’s Business Express, then your customized checklist will entail information about whether you need to get permits or licensing to legally set up and operate a business in New York. Moreover, this checklist also gives you links to your main county office or county clerk so you can ask about your local permitting, licensing, and zoning requirements.
At this point, if you plan on hiring employees, you will need to brush up on your employer’s responsibilities as well. Carrying business insurance is included among the mentioned requirements, such as workers’ compensation insurance, disability benefits insurance, and unemployment insurance. However, if you are not hiring employees, then you will be offered a Certificate of Attestation of Exemption. It attests that your business does not need to carry any of the mentioned insurance types.
However, whether you have employees or not, you will almost need to buy a type of coverage. Be it professional liability insurance, general liability insurance, and/or commercial property insurance.
Secure Business Funding
You are going to need some money to get yourself started. But if you are ready to seek business funding, your first stop perhaps should not be your local bank. Banks are cautious in lending to new businesses. This is because they don’t have years’ worth of strong credit and financial documents required to prove the business’s ability to handle debt.
Instead, most businesses use alternative financing methods to get themselves moving. Often, these methods involve bootstrapping, tapping their own savings, using a personal loan for startup purposes, and/or borrowing from friends and family who believe in their endeavor. If possible, you can also try your hand at crowdfunding, scour your network to find angel investors, or go debt-free.
Get A Business Bank Account And Its Credit Card
There is an old saying someone, “Don’t Mix Business With Pleasure”. It turns out, it exactly applies to your finances, too. Getting a business bank account and signing up for a dedicated credit card is the next step in starting your business in New York.
Setting apart your personal finances and business is critical for two reasons: It will make your bookkeeping and tax season easier to organize. And it will protect your personal assets in the unexpected event that your business is sued.
If you are satisfied with the bank you are using for personal finances, you may also open your business bank account with them. Keeping both sets of finances with only the same institution is easier logistically. Remember, when you are starting, you can get away with just opening a checking account in order to have easy access to your money. You can later open a business savings account whenever you start growing.
Moreover, if you can’t give your business’s financial data on your application, then credit card companies frequently allow you to use your personal financial data instead. Spending on your card will help increase your credit score, which is important to be eligible for a business loan down the line. Also, using an 0% introductory APR Credit Card can assist you to fund your New York business in the early days. Just ensure that you have planned to pay off the balance before the intro period ends and the APR jumps.
Kick Off Your Marketing Plan
So, now that your financials and paperwork are in order, you are well on your way to setting up a business in New York. The next step is to spread word of mouth about your business. Marketing your new business may seem a daunting task. But in reality, your business marketing plan can be a golden opportunity to bend your creativity. At the start of your endeavor, you can keep your strategies small. Here, PPC Services can be better helped in online business marketing. You will need to focus on creating, maintaining an online presence, and reaching out to the community.
Building a professional business website is quite non-negotiable, and with website creators like Wix and Squarespace, it is pretty simple to do. Hopefully, you got your domain name in step 2, but if you did not, you can easily do so through your website creator. Make sure to add an About page, so prospective customers are able to put a face to your business and links to its social media platforms. If you are a service-based company offering Video Animation Services, for instance, you can also incorporate your appointment scheduling software in order to make it easier for clients to book a session with you.
Along with a website, creating social media accounts for your business is the most crucial marketing strategy you can implement now. Most importantly, try to post high-quality content on your selected platforms regularly. In this case, getting Professional SEO Services will truly benefit you. Also, don’t forget to redirect your followers to your business’s social handles.
Old-fashioned networking is an excellent way to spread the word about your venture. Whether you are opening a physical storefront or using eCommerce Development Solutions for online business, pay a visit to New York business owners in your community, introduce yourself and ask if you can keep your business cards at their till assuring them that you will do the same for them. Also, make sure your customers have an awesome experience with your new business.
We can’t guarantee that your unique business will join the likes of WeWork, BuzzFeed, and other unicorn club members. But yes, we can assure you the aforementioned eight steps for setting up a business in New York can help build a strong foundation for your New York-based venture.