New York is a land of incredible opportunity, especially for entrepreneurs here in Western New York. Whether you’re launching a tech startup in Buffalo or a family-run shop in Amherst, the thrill of a new venture is well-deserved. It’s always helpful for business owners to be educated regarding some of the legal issues that can feel like a bit of a maze.
At Tiveron Law, we’re passionate about helping our neighbors turn their visions into successful, legally sound businesses. Here are the five essential steps to getting your business off the ground correctly in New York.
1. Choose the Right Legal Structure
Before you sell your first product, you need to decide how your business will be organized. This choice dictates your personal liability, how you’re taxed, and your ability to grow.
Most people choose between a Sole Proprietorship, Limited Liability Company (LLC), a Corporation (C-Corp or S-Corp), or a Partnership. For many small business owners, an LLC is a popular choice because it protects your personal assets from business debts. We can help you weigh the pros and cons of the various options based on your specific goals.
2. Register with the State (…and Handle the “Publication” Requirement)
Once you’ve picked a structure, you have to make it official with the New York Department of State. If you’re forming an LLC, New York has a unique and somewhat quirky “Publication Requirement.”
You are required by law to publish a notice of your formation in two newspapers in the county where your office is located for six consecutive weeks. Failing to do this can actually result in your authority to do business being suspended. It’s a bit of an old-school hurdle, but it’s one you can’t afford to skip.
3. Obtain Your Federal and State Tax IDs
Think of your Employer Identification Number (EIN) as a Social Security number for your business. You’ll get this from the IRS, and you’ll need it to open a business bank account, hire employees, and file taxes.
In addition to the federal EIN, you’ll likely need to register with the New York Department of Taxation and Finance. If you plan on selling taxable goods or services, you must apply for a Certificate of Authority to collect sales tax. Doing this at least 20 days before you open for business is key to operating smoothly.
4. Create Your Governing Documents
Don’t skip the “internal” paperwork. Even if you are the only owner, you should have an Operating Agreement (for LLCs) or Bylaws (for Corporations).
As we often mention when discussing partnership disputes, these documents act as your business’s constitution. They outline who makes the decisions, how profits are shared, and what happens if someone wants to leave the business. In New York, having a written Operating Agreement for an LLC is actually a legal requirement, not just a good idea.
5. Secure Necessary Licenses and Insurance
Depending on what you do, you might need specific professional or local licenses. A restaurant in Buffalo needs different permits than a landscaping company in Cheektowaga.
Furthermore, New York is very strict about employer obligations. If you have even one employee (full-time or part-time), you are generally required to carry:
- Workers’ Compensation Insurance
- Disability Benefits Insurance
- Paid Family Leave Coverage
Starting a business is a major milestone, and creating a sound legal foundation right from day one is the best way to ensure your long-term success. Our Corporate and Business Law team at Tiveron Law is dedicated to helping Western New York entrepreneurs navigate these steps with confidence, allowing you to focus on what you do best: running your business.
Are you ready to make your business official? Contact Tiveron Law today for a consultation, and let’s get your New York venture started on the right foot.