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Wednesday 17 August 2022
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What You Need to Know Before Starting a Business in NY

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Starting a business from the ground up won’t be easy, but with the right ideas and systems in place, a successful New York business might be closer to reality than you might have thought. You should be building your business with the idea that a long-term plan is essential to your immediate success. In addition, you’ll need legal knowledge and insight into your chosen industry to maximize profits and drive sales. Here is what you should know before starting a business in New York.

Write a Business Plan with Clear Goals

Writing a business plan should be one of your priorities when starting a business in New York, especially if you’re planning on getting into business with someone else. Research shows that up to 70% of all business partnerships fail, and one reason that might be is that business partners don’t have a clear understanding of the direction their business should go. You need to understand your business goals and the method for achieving those goals, as well as a timeframe for the successful completion of your business goals. Without a business plan, you’d make financial decisions without all the facts, and make changes to the company that could jeopardize profits in the long run.

Develop a Business Idea Before Choosing Your Name

The idea behind your business involves what you want your business to accomplish. The ways customers interact with business and the overarching theme connecting the ideas together will help you come up with the perfect name for your business. You’ll need something catchy, memorable, and interesting. However, your business name also needs to align with the objectives you want for your business. Because of tax filing regulations and zoning requirements, you’ll have to avoid choosing a name that’s too similar to another company, especially when you’re deciding to form an entity as a sole proprietor, or more officially, as an LLC.

Apply for an Employer Identification Number (EIN)

With an EIN, you can open business accounts and apply for a business loan. You’ll also have the added benefit of being able to keep your business transactions separate from your personal checking and savings accounts. Come tax season, you’ll want all of this documentation separate to help you avoid any penalties associated with false reporting to the IRS. An employer identification number can also help you speed up existing business loan applications while improving trust between you and your customers. People who interact with your business may feel as if you’re more credible and trustworthy when you use an EIN in place of your social security card.

Apply for Licenses and Permits

When you’re selling goods, you have to report to the New York Department of Taxation and Finance as a sales tax vendor. This is a process for anyone who sells tangible, personal property or taxable personal services. For other licensing requirements, you can refer to the New York State Business Express website. The resource provides users with all the information they need to start and manage a New York business that meets state laws and regulations. For information regarding other permits, before officially launching your business you should make sure you’ve taken into consideration rules for health and safety, the environment, and building and construction. Remember, licensing and permit rules change frequently. A report done by the U.S. Small Business Administration proposed that small businesses’ share of the national GDP is at 44%. This means small businesses account for a large portion of potential corporate legal clients and continue to be a significant part of the economy. It’s your responsibility to make sure your small business fits within the rules.

Secure Funding

Everything from building materials to repair and maintenance, to the cost of hiring and retaining employees, takes substantial money. As a business owner, you might think you have enough funds at the start, but there are ways to get ahead. For example, crowdfunding opportunities and selling products online can give you extra sources of income you might not have known about. All of this is fortunate for situations where business equipment doesn’t function properly and deep cleaning services are needed. By cleaning your machine tools on a normal schedule, you can prevent rust and build-up that could result in damage.

Running a New York business won’t be easy. But if you have the right goals in place, you’ll be able to make the progress you need to keep your business running smoothly. A long-term plan is essential to your immediate success, but without knowing what it takes to keep a business running, you’ll need legal insight into your chosen industry to increase profits going forward.