Are you a budding entrepreneur who is eager to start a business in New York City? Then you’re going to want to stick around to learn the key steps needed to turn your vision into a reality. Here, we bring you a guide to starting a business based in NYC.
Establish Your Business Plan
Before you start advertising on New York billboards, you need to have a solid business plan in place. Some of the most notable names got their start in New York, from BuzzFeed to Blue Apron. As such, you can be certain that competition is stiff in NYC.
With that said, it’s crucial that you have a well-thought-out and properly planned strategy for starting a business. Coming to New York City with nothing more than an idea won’t get you far. Therefore, a business plan will help ensure that you know what you’re doing and will serve as a roadmap for how to get there.
Pick a Name, Any Name
If you don’t already have a business name picked out, it’s time to get busy brainstorming. To the surprise of many young business owners, their ideal business name is already taken, so you’ll want to make sure you aren’t too attached to your first choice.
And speaking of which, you’re going to want to have several backup names in your hat, just in case your first, second, third, or tenth choice is already taken. Don’t ignore the power of the internet, as it serves as an excellent resource for researching business names.
Moreover, you’ll want to perform a business entity search through New York’s Secretary of State. If one or all of your names is already in use, these methods will inform you as such.
Choose an Entity
Once you have your name selected, it’s time for your business entity. This is a very critical step in starting a business based in NYC. Why? Because the entity you settle on will determine how you pay taxes, what kind of ownership and managerial structure you require, and what kind of legal protection you need.
How you register your business will also depend on what kind of business entity you choose. To give you an idea of what kind of entities are in New York City, observe the following:
- Sole proprietorships
Among these entity types, LLCs are some of the most common in NYC. If you’re unsure as to what kind of entity you should operate under, it’s best to secure the services of a legal firm for guidance and direction.
They can tell you what business entity is most suitable based on your needs as an individual and a business owner. The New York Business Express is another wonderful resource for determining what each entity is and all that it entails. What’s more, it’s there that you can learn what steps need to be taken in order to start your business in NYC.
Get Your EIN
Before you are able to do business in NYC, you will need to acquire your EIN (Employer Identification Number). You can get this unique number after you register for New York taxes at the Tax Department. Unless you already live in New York and are familiar with its tax system, you’ll want to take time to get to know NYC taxes.
It’s no secret that taxes can be tricky business. Therefore, it’s in your best interest that you speak with a qualified tax specialist who can guide you through the turbulent waters of business taxes.
You should then be ready to apply for your EIN. You do this through the IRS, and once you have your EIN, you will be able to file your business’s tax return when the time comes to do so. What’s more, an EIN is essential in starting a business bank account.
Following this juncture, you can then move on to getting any necessary permits, business insurance, licenses, and such.
It takes money to make money, as the adage goes, and this couldn’t be further from the truth in a place like New York City. The good news is that if you don’t have your own capital, you can seek startup funds to help get your business off the ground and running.
It’s best to avoid banks, as most won’t foot the bill for startup businesses. Instead, try to borrow from friends and family or hit up crowdfunding websites online.
Market Your Brand
Once you’re ready to market yourself, you should be well on your way. It’s a lot of hard work and dedication to get here, but your efforts will be well worth it.