Starting Your Business in New York | A Step-by-Step Guide

Start a Business in New York

If you want to start an LLC in New York, there are numerous factors to consider. Starting your own business is one of the most exciting and profitable things you can do in New York. But where do you start? Follow our comprehensive guide on How to Start a Business in New York. We will assist you in removing doubt from the process and investigate your success chances. It will begin with defining your business idea and progress to establishing, launching, and expanding your business. Webinarcare Editorial Team will help you every step of the way!

What Business to Start in New York?

If you’re looking to start a business in New York, consider starting a limited liability company (LLC). LLCs offer personal liability protection for their owners while also providing the flexibility of a partnership or sole proprietorship. Beyond that, here is the list of businesses to consider in New York.

  1. Delivery services
  2. Merchandise Reseller
  3. Mobile business
  4. Trucking Business
  5. Daycare Center

Whatever business you choose to start, it’s important to conduct thorough market research and create a solid business plan before diving in. We reviewed some of the Best LLC Services and provided features as an add-on with their packages for you to check out.

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Starting a business can be a challenging but highly rewarding endeavor. By taking the time to research and plan, you can increase your chances of success. Whether you choose to form a corporation or start an LLC in New York, it’s important to surround yourself with a strong team that will guide you. Don’t let fear hold you back, take that first step towards turning your business dreams into a reality.


How to Start a Business in New York?

To form a business in New York, you must follow a few steps that include creating a business plan, choosing a business entity type, determining your business costs, naming your business, registering a business, and lastly, marketing your business.

Please continue reading to learn more about the overall procedure and what new small business owners should keep in mind as they complete each step.

Step 1: Creating a Business Plan

When developing a business plan, many factors should be considered during the decision-making process. Your business plan in New York serves as a road map for your company’s success.

A business plan should take into account the specific goals of your company. You should know the product or service you will provide in New York. A well-thought-out business plan is essential for determining how your company will make a profit. If the purpose of the business plan is ambiguous and unrelated to the service you provide, it will impact the business you are forming. Make sure your business goals are SMART (specific, measurable, achievable, realistic, and time-bound). Also, researching your competitors’ services will help you determine your strategy for your state business. Finally, you should consider your company’s funding.

With this article’s assistance, you can better comprehend your business’s essential components and success strategy. You can apply for New York Small Business Loans from banks and investor funding to help support your company in New York.

Once you have the entire plan in your hands, you can work on the legal framework of your company. Legally, you can form an LLC for your ideal business.

Step 2: Choose a Business Entity in New York

Selecting a business entity for your New York company. When starting your own business, you must choose a business structure. How well your personal assets are secured, how much tax you pay, and how much paperwork you have to deal with will all be significantly impacted by the type of corporate entity you choose. Consider setting up a corporation, LLC, LLP, or sole proprietorship as your business entity in New York.

Sole Proprietorships

Consider a sole proprietorship if you want to start a business in New York by yourself. A sole proprietorship is the simplest business structure in which a single individual owns and operates the entire business. The owner and the business are considered the same legal entity in a sole proprietorship. There is no legal distinction between the owner and the business, meaning that the owner has complete control over the business operations, profits, and losses.

Sole proprietorships are best suited for New York small businesses with low risks and for individuals who want to maintain complete control over their business without the complexities of establishing a separate legal entity.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines features of both partnerships and corporations, offering limited liability protection to its owners (called members) while allowing flexibility in management and taxation. An LLC is a separate legal entity from its owners, meaning the members are not personally liable for the business’s debts, obligations, or liabilities.

It is a popular choice for small to medium-sized businesses that want the liability protection of a corporation while maintaining management flexibility and simpler tax treatment. It’s essential to consult with a legal or financial professional to determine if an LLC is the best choice for your specific business situation.

Limited Liability Partnership

A limited liability partnership (LLP) is comparable to an LLC. However, it is usually used by licensed business professionals like attorneys or accountants. A partnership agreement is necessary for this kind of business entity. You can form an LLP in New York if you are planning to.


Forming a Corporation in New York reduces your personal liability for business debts as an LLC does. A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. It is created under the laws of the state it is incorporated in and is considered a separate “person” under the law. The corporation can enter into contracts, own property, sue and be sued, and pay taxes separately from its owners.

A corporation can be taxed as an S-corporation (S-Corp) or a C-corporation (C-Corp). If a small corporation satisfies certain Internal Revenue Service (IRS) standards, then S-corporation status is available, providing pass-through taxation. However, most larger businesses and startups seeking venture financing are taxed as C-corps.

To choose the right business structure in New York, consider personal liability protection, taxation, management flexibility, administrative requirements, and setup costs. Consult a legal or financial professional to help you make the best decision.

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Step 3: Determine your New York Business Cost

In New York, you should determine the cost of your business. You should consider paying the Articles of Organization fee, business licenses fee, office supplies and equipment, payroll, rent, utilities, transportation, and taxes.

Usually, filing an initial New York Articles of Organization fee costs $200, while the LLC annual fee costs $4.50 in New York. In terms of filing New York Certificate of Incorporation, the costs usually range up to $125 for filing online, or by mail..

If forming an LLC is your ideal business, consider knowing the LLC Cost in New York.

Step 4: Name your Business in New York

Naming your business doesn’t take a lot of time. With the help of New York Business Name Search, you can acquire a name for your business. If you form an LLC in New York, you must follow the below rules while naming your business-

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In New York, if you do not wish to file your business right away but want to hold the name that you have decided on, then you can reserve your business name. You must file a name reservation application in the New York Secretary of State to keep the name.

If the business name is available, you may choose to reserve it for a specific period of 60 days. The online name reservation fee is disclosed and the mail name reservation fee is $20. If your business plans to operate under a name other than its legal name, you may also need to register a fictitious or “doing business as” (DBA) name.

The DBA filing can be done in two methods, by mail and in person, which you can file in New York Secretary of State. You can check out how to file a DBA in New York for clearer understanding.

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Step 5: Register New York Business

To register a business in New York, you need to file it with the New York Secretary of State. Before that, you must have a New York Resident Agent for your business. The Resident Agent is a person who is responsible for receiving important legal documents on your behalf.

You can serve as your own Resident Agent, or you can appoint a friend or family member, or you can check the Best Resident Agent Services in New York.

Apply For Articles of Organization

After you have a Resident Agent, you need to file the New York Articles of Organization, if you want to have an LLC structure, or you need to file the New York Certificate of Incorporation if you want to have a Corporation.

Request For an EIN

In addition to the paperwork, your Resident Agent should apply for an Employer Identification Number (EIN) in New York. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website. You can obtain the EIN for free from the IRS.

The application of an EIN in New York can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone (for International Applicants)– International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in several ways. It will give your LLC the absolute advantage necessary to operate at full capacity without encountering legal or judicial issues.

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Apply for Business License and Permit

Business licenses and operating permits are necessary to run any business in New York. Before launching your new business, request any required business license or permission. Most New York businesses need licenses or permits to operate. Federal, state, and local governments may all require businesses to have licenses and permits. The business license fee depends on the type of license you are applying for. It can start from $25 till going up to $100+. However, in New York, the business license fee ranges from $50 – $300.

Step 7: Obtain a Bank Account

Your business dealings in New York might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Opening a separate bank account for your New York business is essential for maintaining a clear separation between your personal and business finances.

You can check out the Best Banks in New York, which offers the best fees, services, and convenience for your business needs.

Step 8: Market your Business in New York

Now that your New York business is registered, you can market it with an ideal marketing plan. An ideal marketing plan can help a start-up business to become known. Making a comprehensive social media network like META, Facebook, Instagram, Twitter, and YouTube falls within this category. While creating an SEO campaign for your company website, you may also look at specialized communities on Facebook and LinkedIn.


What legal structures are available for starting a business in New York?
The most common legal structures for businesses in New York are sole proprietorship, partnership, LLC, and corporation.
Do I need a business license to operate in New York?
Depending on the type of business you’re starting, you may be required to obtain a business license or permit from the state or local government.
How long does it take to register a business in New York?
Registering a business in New York typically takes less than a week, with some types of businesses able to register online in just a day or two.
What taxes will my business have to pay in New York?
New York businesses may need to pay income tax, sales tax, property tax, and potentially other types of taxes, depending on their operations.
What are the benefits of incorporating my business in New York?
Incorporating your business in New York can provide legal protection from personal liability, increased credibility with customers and suppliers, and other advantages.
What industries are popular for business startups in New York?
Some of the most popular industries for business startups in New York include tech, healthcare, and finance.
Are there any funding programs for small businesses in New York?
Yes, there are a variety of state and local funding programs available, as well as private investors and other sources of capital.
How can I secure a business loan in New York?
It’s possible to apply for a business loan from a bank or other lender, or seek alternate forms of financing like crowdfunding or angel investments.
What resources are available for entrepreneurs in New York?
There are a variety of entrepreneur-focused resources available in New York, including government organizations, business accelerators, and networking groups.
Can I start a business in New York if I’m not a US citizen?
Yes, it’s possible to start a business in New York even if you’re not a US citizen, but it may require additional paperwork and regulations.
Are there any tax incentives for businesses in New York?
Yes, there are tax incentives available for businesses that invest in certain areas or industries, as well as other programs designed to support economic growth.
How can I market my business effectively in New York?
Effective marketing strategies for businesses in New York might include social media, influencer partnerships, event sponsorships, and local media advertising.
What are the biggest challenges in starting a business in New York?
Some of the biggest challenges might include finding funding, navigating complex regulations, and dealing with competition in crowded markets.
Where can I find office space for my business in New York City?
There are many co-working spaces, executive suites, and traditional office buildings available for rent throughout New York City.
Is it necessary to have a lawyer when starting a business in New York?
While it’s not strictly necessary, it can be highly beneficial to have a lawyer guide you through the legal complexities of starting a business in New York.
What are the first steps I should take in starting a business in New York?
The first steps might include conducting market research, creating a business plan, and registering your business with the relevant authorities.
Can I operate my New York-based business from home?
It may be possible to operate a home-based business in New York, but you’ll need to make sure you comply with all local zoning and occupancy laws.
How can I protect my business from liability in New York?
There are a variety of ways to protect your business, including incorporating, obtaining proper insurance coverage, and developing solid business procedures.
How much does it cost to hire an employee in New York?
The cost of hiring an employee in New York can vary depending on their level of experience, but generally you’ll need to consider factors like wages, payroll taxes, and benefits.
How can I avoid common legal pitfalls when starting a business in New York?
Working with an experienced attorney and making sure you’re fully complying with all relevant legal requirements will go a long way toward avoiding legal issues.
What are some popular online marketing tactics for businesses in New York?
Some of the most popular online marketing tactics for businesses in New York might include search engine optimization (SEO), email marketing, and social media advertising.
How can I compete with established businesses in New York?
Focusing on providing high-quality products or services, targeting niche markets, and offering exceptional customer service can help you compete with established businesses.
What’s the ecosystem of tech startups like in New York?
New York has a vibrant and thriving tech startup ecosystem, with many resources and events available to help support entrepreneurs in this sector.
What kind of insurance do I need for my New York business?
The type of insurance you’ll need can vary depending on your industry and the nature of your operations, but generally you’ll require at least general liability insurance.
How can I create a unique brand for my New York business?
Standing out from the competition in New York might require a unique product or service offering, a strong visual identity, and a relentless focus on customer experience.
Can I get a loan from the Small Business Administration (SBA) for my New York business?
Yes, the SBA offers a variety of loans and other funding options to small businesses in New York.
What are some tips for networking as an entrepreneur in New York?
Joining business or industry associations, attending relevant conferences or events, and leveraging social media can all be effective ways to network and build connections in New York.
Do I need to obtain any permits or licenses to sell online in New York?
Yes, depending on the product or service you’re offering, you may need to obtain a seller’s permit or other licenses to sell online in New York.
How can I stay updated on changes to New York’s business regulations and laws?
Consult with a lawyer or tax professional, subscribe to relevant government or industry newsletters, and regularly check for updates on the relevant official websites.
What steps do I need to take to start a business in New York?
The first step is to choose a business structure, register your business with the New York State Department of State, and obtain any required licenses and permits.
What type of business structures are available in New York?
The most common business structures in New York are sole proprietorship, partnership, limited liability company (LLC), and corporation.
Is it legally required to have a business plan to start a business in New York?
While it is not legally required in New York, having a business plan is highly recommended as it can help you stay on track and secure financing.
How much does it cost to register a business in New York?
The cost of registering a business in New York varies depending on the business structure, but generally ranges from $25 to $225.
What taxes does my New York business need to pay?
In New York, businesses generally need to pay federal and state income tax, sales tax, and payroll tax.
Are there incentives or assistance programs available for starting a business in New York?
Yes, there are a variety of incentives and assistance programs available for businesses including grants, loans, tax credits and other forms of financial assistance.
Can I set up an online business in New York?
Yes, New York allows businesses to operate exclusively online, or in conjunction with a physical storefront.
Is New York a good place to start a business?
Yes, New York offers a range of opportunities and industries to entrepreneurs, making it one of the competitive states in which to do business.
Is New York business-friendly to small businesses?
Yes, small businesses get the benefit of initiatives that allow them access to loans, training, and assistance to remain competitive in the economy.
What are the typical licenses and permits required to start a business in New York?
The licenses and permits vary according to your business, but generally, businesses will need to register with the New York State Department of State and apply for additional local licenses and permits depending on the industry and location of their business.
What is the minimum wage in New York?
The minimum wage in New York varies by region. Visit the New York State Department of Labor to determine the specific minimum wage rate for your area.
What is the sales tax rate in New York?
The sales tax rate in New York State ranges from 4% to 8.875%, depending on the location.
How do I register my business name in New York?
You can register a business name with the New York State Department of State. The application fee typically ranges from $25 to $100 depending on the business structure.
What are the insurance requirements for starting a business in New York?
The insurance requirements vary depending on the business type, and it would be advisable to discuss the required coverage applicable to your business with an insurance professional.
How do I obtain financing to start a business in New York?
You can obtain financing from banks, venture capitalists, angel investors, or state and federal funding programs.
Where can I find free resources to help me with my New York business?
The U.S. Small Business Administration’s New York office offers free business assistance services and resources for entrepreneurs.
How can I use social media to promote my New York business?
Social media platforms like Facebook, Instagram, and Twitter can be a great way to promote your New York business and build an online presence.
What industries are growing in New York?
Fast-growing industries in New York include technology, healthcare, fintech, and tourism.
What are the zoning regulations for opening a business in New York?
Zoning regulations vary depending on location. Speak with local zoning boards and attend community meetings for guidance.
What type of insurance do I need for my New York business?
The type of insurance your business needs depends on the industry, risks you face, and business activity. Contact an insurance agent to discuss applicable types of coverage for your company.
How can I check to see if a specific business name in New York is taken?
You can conduct an in-depth search of business names in New York through the Corporation and Business Name Search.
Do I need to have a specific education level to run a business in New York?
There is no specific educational requirement for starting a business in New York, but education will add significant advantages to running the business.
How can I hire employees for my New York business?
Post vacancies on job websites and boards to reach licensed applicants. Also, consider customized hiring criteria to target the competency required in the hiring process.
Are there any grants available to entrepreneurs in New York?
Yes, there are many grants available for entrepreneurs in the state including Women’s Opportunity awards and Minority and Women-Owned Business Development (MWBE) State Contracting Certified Businesses.
Can I operate a business from home in the New York State?
Yes, home-based businesses require permits and should meet relevant regulations and zoning requirements stipulated in their respective County.
Are there any mentorship programs available for new entrepreneurs in New York?
Yes, there are numerous programs available such as SCORE, a national non-profit organization providing education and mentorship to entrepreneurs.

Also Read

Why You Should Start Business in New York

One of the biggest draws of starting a business in New York is the city’s unparalleled access to a vast network of resources and connections. From funding opportunities to top-notch talent, the city is a hub of innovation and collaboration, making it easier for entrepreneurs to secure the support they need to bring their ideas to life. With countless incubators, accelerators, and co-working spaces scattered throughout the city, aspiring business owners have access to a wide range of programs and services designed to help them succeed.

In addition, New York’s thriving economy and robust market ensure that there is always a demand for new products and services. The city’s diverse population of over 8 million residents offers businesses a wide consumer base to target and test their offerings. From high-end fashion boutiques in Manhattan to cozy cafes in Brooklyn, there is a niche for everyone in New York’s vibrant commercial landscape.

Moreover, New York’s status as a global business hub provides businesses with unparalleled exposure to international markets and opportunities. The city’s proximity to major financial centers and transportation hubs makes it easy for businesses to connect with potential partners and customers from around the world. With a myriad of trade shows, conferences, and networking events hosted in the city every year, entrepreneurs in New York have ample opportunities to expand their reach and explore new markets.

Additionally, New York’s reputation as a melting pot of cultures and ideas fosters a culture of creativity and innovation that is essential for business success. The city’s dynamic and diverse workforce brings together a wealth of perspectives and expertise, enabling businesses to tap into a pool of talent that is as diverse as the city itself. From seasoned professionals to fresh graduates, New York offers businesses a rich talent pool to choose from, ensuring that they have the right people on board to help them achieve their goals.

Finally, New York’s unparalleled lifestyle and cultural offerings make it an attractive destination for both entrepreneurs and employees alike. With world-class dining, shopping, and entertainment options at every corner, the city offers a vibrant and exciting environment to live and work in. From Central Park to Broadway, there is never a dull moment in the city that never sleeps, making it an ideal setting for businesses to thrive and grow.

In conclusion, New York’s unique blend of opportunities, resources, and culture make it an ideal destination for aspiring entrepreneurs looking to start and grow their businesses. With its unmatched network of connections, diverse consumer base, global reach, and vibrant lifestyle, the city provides businesses with the perfect environment to succeed. Whether you are a tech startup looking to disrupt an industry or a retail store front looking to make a mark, New York offers the perfect stage to turn your dreams into reality.


Starting a business in New York has unique advantages and challenges since it offers a large and diverse market, access to skilled talent, and numerous networking opportunities, making it an attractive location for entrepreneurs. However, business owners must also contend with a high cost of living, intense competition, and potentially complex regulations.

Ultimately, whether starting a business in New York is the right decision depends on the entrepreneur’s specific needs, goals, and industry. It is crucial to conduct thorough research and consider factors such as taxes, regulations, workforce availability, and target market when choosing a location for a new business. By carefully weighing the pros and cons, entrepreneurs can make informed decisions and set themselves up for success in the competitive New York business landscape.

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