How I started my business in New york
(6 steps with prices!)
Since starting my business in October of 2020, I’ve gotten a surprising amount of questions from old friends, family, and strangers about how to start a business in New York. I shouldn’t be too surprised, I spent months researching and asking questions to figure out the best course of action to launching Pizzola Creative.
Priyanka Chopra-Jonas posed a question in her new book: “Is there a world in which those who are blessed with more might build a larger table rather than building a higher fence?”
I love this quote. It lives on a sticky note stuck to my computer monitor. I have enough room for everyone at my table, so I’m happy to share any information or resources I come across. I don’t believe in gatekeeping information, especially in the design industry. Someone once told me there’s enough work to go around - and that is SO true.
So here’s how I started my Single Member LLC in New York State:
1) Sign up for an account on businessexpress.ny.gov (this is where you’ll file pretty much everything). First, file your Articles of Organization and pay the $200 fee. You can pay an extra $35 to get a certified copy, which I chose to do in case anyone ever asked for proof of my business status.
2) Create an Operating Agreement. You don’t have to file this anywhere, but it’s vital to keep one on record. I took a week-long class with The Creative Law Shop and they heavily stressed this point (check out their blog for amazing content - that’s who I look to for business advice). The main reason for obtaining an LLC is to take liability away from you as a person, and put it on the company. In the event you get sued, no one could come after your home, car, or other personal assets. HOWEVER - you need to be able to show a judge you properly operate your LLC. Part of that is being able to present an Operating Agreement (the document that governs your business). Even if you’re the only employee of the business, you still need to have one. You can use a free template online, or pay for one like I did. Mine cost $475, here it is!
3) Publish a legal notice in TWO local newspapers (that run in the same county your business is located). One paper needs to run weekly, and the other needs to run bi-weekly. Both legal notices need to run for six consecutive weeks. It cost me about $140 to run both notices, but pricing can differ based on the paper. Once everything is fully published, you’ll receive a receipt from each paper. File these with the New York Department of State to receive your Certificate of Publication. Also, pay the $50 filing fee.
4) Apply for an EIN (Employer Identification Number) on the irs.gov website (it’s free).
5) If you’re the only member of your business, you have the option to opt-out of Workers Compensation and/or Disability and Paid Family Leave Benefits. That’s also free to file.
6) File for your Certificate of Authority to Collect Sales Tax. You can do this using the NY Business Express Account that you created. I don’t remember paying a fee for this, and I don’t have a receipt on file so I think it was free!
Finally, it’s time to celebrate! Launching a business is a big step and such an exciting process. Once I buckled down and started the paperwork, it took me a few hours to complete everything (except for the Certificate of Publication which required waiting six weeks). Best of all, I did everything while sitting at the Crisp Cannoli sipping a coffee and eating a pastry. Check them out if you’re in the NYS Captial Region!
Filing the paperwork for my business cost around $900, however, without paying for the Articles of Organization template it could cost you around $425.
Let me know if you have any questions! I’m happy to help and love supporting small businesses :) Thanks for reading!
PLEASE NOTE: I am not a lawyer, nor an expert. This is NOT legal advice and should in no way be construed as such. This is simply an account of my personal experience forming an LLC in New York State. If you’re thinking of starting a business, I highly suggest consulting a lawyer and doing your own research. This is not an exhaustive list, your business may require more steps.