Opening a Business in NY – What You Need To Know

Before you open a business, there’s a multitude of highly important business and legal issues to consider.

From business planning to research and market data, to start-up assistance and capital financing options, to legal documents, insurance, and licenses, and a lot more in between – thorough preparation is crucial for starting a new business in New York, or any other state.

Opening a company is exciting, and it’s also a very intricate process that involves many decisions and, often, substantial funds; careful planning and legal assistance could help you avoid mistakes leading to major financial and legal consequences.

Here’s some important information to know when planning to open a new business in New York:

• Starting a business involves working with both the State and your local government.

• Plan your business. Involving a business law attorney during the planning stage will help you understand business laws and avoid legal issues – saving you many potential complications and money later on.

• Understand New York State licensing and permitting and other requirements in your area for applying for the right license or permit, as well as the name of your business.

• Make sure you are not choosing a name and building a brand name someone can sue you for later. Copyright infringement is a big issue nowadays, so protect your business from every standpoint. You may want to trademark the unique name of your business or products. And make sure you implement plans to protect any trade secrets.

• Make careful and smart decisions about choosing a legal structure to determine who will own and be legally responsible for your business, and how to file your taxes. How much liability and risk would you want to take on as an owner? How do you envision your earnings and the earnings of the business will be affected by the tax codes? Should your business operate as a sole proprietorship, partnership, limited liability company, S-corporation, or C-corporation?

• Once you’re certain which route to take, register your business. Register a Corporation, Limited Liability Company, or Limited Partnership with New York State. If you decided on General Partnership or Sole Proprietorship register with the appropriate County Clerk.

• Protect your business with necessary and appropriate agreements and legal contracts to help prevent any potential dispute in case of an issue or a disagreement with a client, supplier or service provider. To ensure there are no legal omissions or errors, enlist your business lawyer to assist you with tight agreements that will protect your rights and list your partner’s obligations, if applicable.

• Consider confidentiality and non-disclosure agreements with anyone your business will come into contact with – a solid, thorough contract to protect you and your business.

• Apply for an Employer Identification Number (EIN), or a Federal Tax ID Number; if you are a sole proprietor, your Social Security Number may suffice.

• To sell products and services, register as a Sales Tax Vendor with the NYS Department of Taxation and Finance, and make sure to apply for a sales tax Certificate of Authority early to avoid delays receiving other permits.

• Research required insurance for your business, such as workers’ compensation, liability, and disability insurance, depending on your structure, location and employees. Determine what type of insurance is needed for permits and licenses and to protect you from loss, fines, and lawsuits.

Therefore, your first step towards assuring you are doing everything to protect yourself is choosing a reputable and experienced business law attorney or corporate attorney to assist you in the intricate process of starting a business and to see that your legal bases are covered.

At Levin Law Group, our business lawyers are well equipped to assist you with laws and customs in NYC and other areas in NY and provide support with legal challenges when planning, structuring, and conducting business transactions within a wide range of industries.

If you are starting a business in New York, consider having a law business attorney to guide you through the process.

Your business law attorney can help you set yourself up for greater chance of success and piece of mind from day one. If you think it’s expensive to hire a business lawyer and that you can do start and develop your business without legal help, think about everything you could lose if any of the above, and below, mentioned pitfalls would happen.

If you are incorporating, you need to have a profound understanding of different types of corporations, and all applicable laws, reports and taxes that the government requires for a corporation.

It’s not uncommon that people spend thousands of dollars and many years of work to develop a business – only to find out that it was not properly registered in the first place.

As you can see, business transactions require an array of vital documents; otherwise your business may be exposed to various pitfalls. All your legal documents should be reviewed for any legal anomalies by your New York business law attorney, who will then advise if any necessary changes need to be made and any of your contingencies added.

Your business attorney will not only negotiate on your behalf, but also will also bring to your attention any legal particulars in the state of New York, and ensure the contract follows all state laws as well as addresses any specific issues that might affect the future of your business.

The Levin Law Group’s experienced, competent business law lawyer in New York can assist individuals and business entities in a broad spectrum of business transactions throughout New York State.

Take steps today to ensure your rights and interests are protected. Contact our business law lawyer in New York.