New York has been unofficially deemed as the best place to start a business. It’s competitive, cut-throat and expensive — sure, but the reward of being one of the elite who beat the rest and the potential to win big, is a golden carrot that’s dangled in front of millions of hungry entrepreneurs who risk it all and head to the Big Apple. Although, if you’re new to running a business in the city, or your business has grown since its startup status, it can be easy to overlook some of the important rules and regulations of business ownership in New York.
#1. Don’t miss required insurance
When you were on your own insurance probably wasn’t something you were too worried about, but as your business grows, it becomes mandatory and something that can’t really slip through the cracks. At the very minimum, according to nyc.gov, “in New York State, if you have any employees, you are required to carry workers’ compensation and disability benefits insurance.”
There’s also additional business insurance that varies depending on the type of business you run, and that can all be found here
#2. Make sure you have the appropriate business licenses and/or certificates (and renew them)
Special licenses and certificates are not only for bodegas to hang in their windows to prove legitimacy. From very specific certificates that probably don’t apply to you like a “Certificate of Fitness for Torch Use of Flammable Gases (G-60)” to ones that probably do; like certifications for non-profits, corporations, LLCs or being part of a partnership. Making sure you get the proper licensing and certificates in only half of the pie, the other half lies in staying up-to-date on renewals, which varies by business.
#3. Apply for an Employer Identification Number (EIN), also known as a Federal Tax ID Number.
Now if you’ve been a sole proprietor this one has been pretty non-thought provoking, as for the most part you’ve been able to use your social security number for your tax ID number. However, when your business grows you will need to apply for an Employer Identification Number. According to nyc.gov, “applying for an EIN is a free service offered by the Internal Revenue Service.” A business can apply via phone, mail, online or by fax and in the state of New York, “businesses with employees must also register with the NYS Department of Labor after receiving their EIN either online or by phone.”
#4. Register as a Sales Tax Vendor with the NYS Department of Taxation and Finance in order to sell products and services.
If you have a business that grows to sell products and services on a large scale, first and foremost: congratulations! Second, it’s required by law in the state of New York that you register with the NYS Department of Taxation and Finance in order to obtain a Certificate of Authority to become legitimate, you can learn more here!
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