Since you don’t know if the name you choose will be available, come up with a list of 3 to 5 names that appeal to you and your partners (if you have any). Then go to https://www. dos. ny. gov/corps/bus_entity_search. html and search the name to see if it’s already in use in the state. Check similar names as well. For example, if you want to go with “Caroline’s Crazy Cupcakes,” you might also see if there are any other “Crazy Cupcakes” businesses that might be confused with yours. Once you’ve chosen your name, you can reserve it for up to 60 days with a fee of $20. Go to https://www. businessexpress. ny. gov/app/answers/cms/a_id/3414/ to reserve your name. The 60 days will give you time to finish forming your business before you register your name.
A sole proprietorship is treated as indistinct from you for tax purposes. You report the business income on your personal tax return and pay self-employment taxes. If your business goes bankrupt, you may be personally liable for your business’s debts. A partnership is treated similarly to a sole proprietorship, except there are 2 or more people involved in the business. With a corporation, you are not legally responsible for the debts of your business. The corporation is considered an entirely separate legal entity and pays its own taxes. Corporations are more highly regulated than the other structures and can be more expensive and complicated to form. An LLC is, in some ways, the best of both worlds. You get the limited liability of a corporation but can also enjoy pass-through taxation by electing to be treated as a partnership. That way, your business doesn’t have to pay corporate taxes. A limited liability partnership (LLP or Limited Partnership) is another form of LLC, typically among professionals, such as doctors or lawyers.
Certificate of Incorporation Certificate of Limited Partnership Articles of Organization
Submit your forms online at http://www. nys-opal. com/ or mail them to NYS Department of State, Division of Corporations, State Records, and Uniform Commercial Code, One Commercial Plaza, 99 Washington Ave. , Albany, NY 12231. As of 2019, the filing fees are $125 plus $10 a share for corporations, $250 for LLPs or LLCs. The NYS Department of State accepts major debit or credit cards, personal or business checks, and money orders. Make your check or money order out to “Department of State. "
Applying for an EIN from the IRS is quick, easy, and free. Simply go to https://sa. www4. irs. gov/modiein/individual/index. jsp to apply online. The application asks a few basic questions about your business and takes about 5 minutes to fill out. Your EIN will be issued immediately. The IRS website is secure. However, if you don’t feel comfortable sending information over the internet, you can fill out Form SS-4, available at https://www. irs. gov/pub/irs-pdf/fss4. pdf, and submit it to the IRS. Read the instructions, available at https://www. irs. gov/pub/irs-pdf/iss4. pdf, to learn about the different ways to submit the form.
To set up your account, go to https://my. ny. gov/ and answer “BUSINESS” as the account type. Fill out the application to finish setting up your account.
Go to the Business Express web page at https://www. businessexpress. ny. gov/app/bw/startnewbusiness/ and click “Get Started” to access the Business Wizard. After you answer a few questions about your business, it will tell you exactly what you need to register for and what licenses or permits you need. The process takes about 10 minutes.
Go to https://www. businessexpress. ny. gov/app/answers/cms/a_id/2058/kw/certificate%20of%20authority/ to apply for your certificate. The approval process takes about 5 days. There is no fee for a certificate of authority. The application requires you to provide the day you plan to start business. Your first sales tax return is due at the end of the sales tax quarter that includes that date. Even if you end up opening your business later, you still have to file this first tax return.
Your city or county government office will have information on the licenses or permits you need. Typically, you’ll be able to file your applications online.
Canceled checks Cash register tapes Purchase orders Receipts Invoices Sales records
If you get business from customers who are exempt from sales tax, such as nonprofit organizations, keep records of those transactions for at least 3 years in case of an audit.
You can submit this information through the New York Business Express website or at https://www. nynewhire. com/#/login.
If you use payroll software or a payroll service, they will calculate your state income taxes for you. However, you are ultimately responsible for checking the amount withheld and making sure it’s correct.
If you’re required to pay state unemployment insurance contributions, you must also submit a quarterly wage report to the Tax Department. The Department of Labor uses the data in this report to determine your employees’ benefits. Submit your wage report through your online account at https://www. tax. ny. gov/online/bus. htm. [16] X Research source
You are only taxed on the net profits of your business — the money your business made after all expenses are taken into account. Keep records of your business expenses for at least 3 years in the event of an audit. If your business is structured as a sole proprietorship, you’ll have to pay self-employment taxes and may be required to pay quarterly estimated taxes rather than simply filing once a year.
