Steps for Startups

U.S. SMALL BUSINESS ADMINISTRATION

Rochester Branch Office

Rochester, NY 14614
Tel: (585) 263-6700   FAX: (585) 263-3146
Website:  http://www.sba.gov

To start a business in New York, a company must comply with a number of requirements.  The type of business, its location, and whether or not there will be employees determines what must be done.  General information is provided below to help get you started. 

NEW BUSINESS COMPLIANCE CHECKLIST 

1.     Decide legal structure and file necessary paperwork.

(a)  Sole-proprietorship: Each sole-proprietorship doing business under a name other than its full personal legal name must register its trade name with the County Clerk's Office of the county where the business will be located. Monroe County Clerk's office is at, 39 West Main Street, Rochester, (585) 428-5151. http://www.monroecounty.gov/clerk-dba.php

Purchase a DBA (doing business as) business certificate (for a sole-proprietorship three copies are required) at the Information Center of the Monroe County Clerk's Office, Room #101.   Forms must be completed with all signatures notarized.  The cost is $30.00.     

(b)  Partnership:  Each partnership doing business under a name other than its full personal legal name must register its trade name with the County Clerk's Office of the county where the business will be located.  The Monroe County Clerk's office is at 39 West Main Street, Rochester, (585) 428-5151. http://www.monroecounty.gov/clerk-dba.php

Purchase a DBA (doing business as) business certificate (for a partnership four copies are required) at any business or legal stationary store. Forms must be completed with all signatures notarized.  It is advisable to consult a lawyer about a partnership agreement before filing the certificate. 

(c)   Corporation, Limited Partnerships and Limited Liability Companies (LLC's): 

• Check on available business names with the Secretary of State
• Register a trade name File Articles of Incorporation for a Corporation, or
• File Certificate of Limited Partnership, or File Articles of Organization for Limited Liability Companies (LLC's) 
  

Forms to incorporate are available at any business or legal stationary store and should be filed with the Secretary of State in Albany.  It is advisable to have a lawyer prepare and file the necessary documentation for you.    NYS Department of State, Division of Corporation, 41State Street, Albany, NY 12231.  Telephone (518) 473-2492.  www.dos.state.ny.us   

2.   Local Licenses and Permits:  Cities and Counties may also require business licenses.  Look for the license division under the appropriate city or county listing in the government section of the phone book for local requirements. 

3.   N.Y. State Required Permits and Licenses:  Contact the NYS Governor's Office of Regulatory Reform (GORR) and ask for a permit assistance kit (1-800-342-3464).  NYS Governor's Office of Regulatory Reform address is, PO Box 7027-17th Floor, Albany, NY 12225. http://www.gorr.state.ny.us/gorr/    

4.      Zoning:  If you plan to operate a business in your home or a business location, check to make sure you are not in violation of local zoning ordinances.  Cities, towns, villages and counties may have zoning restriction on certain locations.  Look for the planning or zoning department under the appropriate city or county listing in the government section of the phone book. 

5.      Taxes:   

a.  Federal Taxes and Federal Employer Identification Number (EIN):  If you are forming a corporation or a partnership, if you plan to hire employees, sell alcohol/tobacco/firearms or maintain assets outside of the United States, you must file for an EIN (IRS Form SS-4). Banks usually require an EIN to open a business account.  If you are a sole-proprietorship with no employees you may use your own social security number on federal tax forms, unless you are required to file pension or excise tax returns, such as those for alcohol, tobacco or firearms.  Stop at your local IRS office or call to obtain Form SS-4, "Application for EIN". 

b. Property Taxes:  Property tax must be paid on real and business personal property.  Call the county assessor or treasurer in the city or county in which your business is located. 

c. Income Taxes:  "C" Corporations report business income and expenses to the IRS on a corporate tax return.  Corporate tax payments are also made through estimated tax filings.  Corporations make these payments to an authorized financial institution or a Federal Reserve Bank, using federal tax deposit coupons. 

Sole Proprietors, Partnerships, Subchapter "S" Corporations and Limited Liability Companies (LLC) report business income and expenses to the IRS as part of personal income tax and file estimated tax payments with the IRS.  Sole proprietors must also pay self-employment tax on their income through estimated tax payments.  This tax is similar to the social security tax withheld from the pay of wage earners.  Self-employment tax is based on net earnings of $400 or more. 

IRS has the forms needed to file and pay federal business taxes. 

IRS office is located at 255 East Avenue, Rochester, NY. http://www.irs.gov 

         IRS Information number 1-800-829-1040

         IRS Form Distribution Center 1-800-829-3676 

Corporate Franchise Tax:  Corporations must file a franchise tax report and pay a franchise tax for all or part of each calendar/fiscal year the corporation exists.  Corporations are required to pay federal tax returns. 

State Sales Tax:  If you sell certain goods or services you may have to collect NYS and local sales tax. Contact New York State Department of Taxation and Finance and ask for a sales tax kit.  New York State Department of Taxation and Finance 1-800-462-8100. Office is located at 340 E. Main St., Rochester, NY.  http://www.tax.state.ny.us  

Completed forms should be filed at least 20 days prior to the opening of your new business. 

6.     If You Plan To Hire Employees:

(a)  Obtain an Employer Identification Number (EIN) by contacting the IRS.  Once you return the completed form you will receive the forms that you will be required to submit to the federal government.

(b)  NYS Unemployment Insurance, employers are liable as of the first day of any calendar quarter in which wages totaling $300 or more are paid, or as of the day a business was purchased or succeeded a liable employer.  Contact the New York State Department of Labor to determine your obligation to N.Y.S. Unemployment at (585-258-4510). 
http://www.labor.state.ny.us

(c)  Contact the N.Y.S. Department of Taxation and Finance (1-800-462-8100) regarding forms for N.Y.S. withholding, ask for federal form w-4 and/or NYS publication WT100 (New York State Withholding Tax Guide) and Federal Circular E (Employer's Tax Guide).  These publications explain how to withhold taxes from the wages of employees. Also, Check on Federal Insurance Contributions Act (FICA) requirements.  FICA provides hospital insurance and other benefits for the elderly, survivors and the disabled.  Taxes are levied on both the employer and employee, and withheld by the employer.  The employer and employee each contribute 7.65% of wages. 2.9% of that amount is earned for Medicare. 

(d)  New York State law requires that you obtain Workers' Compensation and Disability Insurance coverage for your employees. Workers' compensation provides cash for workers who become disabled because of job-related injury or illness.  Workers' compensation is also available to Sole-Proprietors or Partners with no employees.  Call State Insurance Fund for information at (585) 258-2000. Website

(e)  Immigration and Naturalization Service reform and control act of 1986 obligates an employer to process Employment Eligibility Verification using the form I-9.  Call the Immigration and Naturalization office at 1-800-870-FORM.   http://www.bcis.gov  

(f)   OSHA-Occupational and Safety Health Administration will provide federal regulations that protect the safety and health of employees.  Contact the OSHA office at (716) 684-3891 for more information.  http://www.osha.gov 

7.     Build a Team of Advisors to Help You:

(a)   Accountant - to advise on tax strategies and recordkeeping.

(b)  Lawyer - to review and produce legal documents and general advice.

(c)  Commercial Insurance Person - for liability coverage and any other forms of insurance your business may require. 

8.   Open a Business Checking Account:  Maintain this account separate from your personal account!  The bank will require a stamped DBA certificate or a copy of your incorporation papers with your corporate seal affixed. 

9.    Arrange for a Business Phone Line to be installed.  By doing this you will be entitled to a business listing.  Consider an answering machine or answering service for calls that come in during your absence. 

10. Produce a Business Plan to outline your business goals and objectives.  Describe what will be necessary to accomplish them.  Major components of the plan should at least include the following: 

(a)   Business Description and Objectives - should be quantifiable. 

(b)  Marketing Plan - target market, competition analysis, advertising, and public relations. 

(c)   Personnel - resumes of all key people, job descriptions. 

(d)  Financials - start-up costs, cash flow projections, income statement, balance sheet and key ratios. 

11. Announcements:  Send announcements of your business start-up to the media, potential customers and friends. 

12. Miscellaneous Information:   

Government Organization	Telephone Number	Website URL
U.S. Copyright Office	(202) 707-3000	http://lcweb.loc.gov/copyright
U.S. Patents & Trademarks	1-800-786-9199	http://ww.uspto.gov
Lawyer Referral Service	(585) 546-2130	http://www.mcba.org
N.Y.S. Department of Development (Obtain a state certification)	(585) 325-1944	http://www.empire.state.ny.us
NYS Dept. of Environmental Conservation (Helps you make environmentally decisions)	(585) 226-2466	NYS Dept. of Environmental Conservation
U.S. Architectural & Transportation Barriers Compliance Board (Provides guidelines for architectural requirements under the Americans with Disabilities Act)	1-800-872-2253	http://www.access-board.gov
U.S. Department of Commerce (Helps with Exporting)	(585) 263-6480	http://www.commerce.gov/
U.S. Department of Labor Department of Labor, with a link to posters required to be posted in the workplace.	(716) 551-4461	http://www.dol.gov
U.S. Food & Drug Administration (Food safety)	(716) 551-4461	http://www.fda.gov
USDA-Food & Nutrition (Authorize retail grocery owners in accepting food stamps or EBT benefit cards)	(585) 263-6744	http://www.usda.gov
Small Business Service Bureau (Provides health insurance for businesses with 1-9 employees)	1-800-343-0939	http://www.sbsb.com
Rochester Rundell Memorial Public Library (Visit the Business/Economic/Law Division)	(585) 428-7300	http://www.rochester.lib.ny.us/

 13.  For more information call:

       (a)   SCORE (Free help for small businesses)                 (585) 263-6473
            
       (b)   SBA Answer Desk                           (800) 8-ASK-SBA
               http://www.sba.gov

      

       :(c)   Small Business Development Center
       :       Brockport (main office)                     (585) 395-2334
               http://cc.brockport.edu/~smallbus        
               Downtown                                        (585) 232-7310

      

14. Also see Sources of Funding