Forming a new business is exciting and exhilarating, but before you can immerse yourself in the hustle and bustle of the Empire State, you need to understand the legal landscape.
Here are some important legal considerations to keep in mind when launching your New York business.
Choosing the right structure
Your business structure influences everything from liability protection to tax obligations. The most common structures include sole proprietorship, partnership, limited liability company (LLC) and corporation. Each has unique legal and tax implications, making it crucial to choose wisely.
Complying with tax regulations
New York businesses must adhere to various tax obligations, including sales tax, income tax and employment tax. Make sure you understand your tax responsibilities and consider adding an accountant to your business formation team to help you learn how to manage your finances.
Understanding employment laws
Like all states, New York imposes strict employment laws. Business owners must comply with wage requirements, workers’ compensation laws and anti-discrimination policies. Become familiar with labor and employment laws to avoid violations and create a positive environment for your staff.
Registering your business
All state businesses must register with the New York Department of State. You will need to file a Certificate of Incorporation (for corporations) or Articles of Organization (for LLCs). Additionally, you must register for an Employer Identification Number (EIN) with the IRS.
Obtaining licenses and permits
Depending on your industry, you may need specific licenses and permits to operate legally. Check New York’s Business Express website to determine your license and permit requirements. Alternatively, an experienced representative can help you obtain the permits and licenses you need.
Taking the time to address these considerations can help you set a solid foundation for your company’s success. Having legal guidance will help.