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How to Start a New Business in New York

Reviewed by Ty Crandall

November 14, 2023
Start a New Business in New York Credit Suite

Starting a Business in New York

A new business in New York can be yours. So have you been wondering: how do I start a business in New York? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in New York during a recession?

New Business in New York: Advantages and Disadvantages

Business Insider puts New York in its middle ten states for starting a new business, per a 2016 article. And this is for the whole country. New York’s density of startup businesses is also somewhat high.

In addition, New York reports the fourth highest per capita GDP in the nation, at $63,929. New York also has better than average numbers for the rate of new business owners.

Recent Changes

In 2018, Forbes put New York at number 26. Also in 2018,  Fit Small Business clocked in New York at number 39. Keep in mind, all three sites use differing methodologies.

Also, remember this is for the entire state and not just New York City.

Forbes praises New York for a better than average quality of life. Economic climate and growth prospects are around average. Regulatory environment is about average, but labor supply and business costs are worse than average.

Fit Small Business says New York is sixth-best for startup activity. The state also scored well for quality of life, labor market, and access to capital. Labor market is a measure of the desirability of an area and the number of people with bachelor degrees. The costs of starting a business are worse than average.

But New York really falters when it comes to cost of living (number 48) and taxes (second-worst in the entire country).

Only you can decide if it is worthwhile to start up in the Empire State. Rural and urban areas will undoubtedly have differences in terms of quality of life, cost of living, and access to capital. So where in New York you are thinking of starting a business will make a difference.

Start a New Business in New York – New York Top Industries

Per the New York State Department of Labor, the biggest industries in New York are construction and information. More top industries in New York are trade, transportation, and utilities.

Top industries are also financial activities; and professional and business services.

Yet more top New York industries are educational services; health care and social assistance. There are also leisure and hospitality; and undefined ‘other’ services.

Starting a business in NY is a lot more than just New York City.

Smart business owners can find new opportunities. Work with bigger industries in the state. Offer goods or services such as data and other computer work such as programming. Another idea is trucking for any industry or food service and catering. Yet another idea is chemical and pharmaceutical support for health care facilities.

Here is how to start a new business in New York state.

Start a New Business in New York – New York New Business Secretary of State Requirements

Register a Business Name

Filing for a fictitious name, or “Doing Business As”, involves making a business name that differs from a business owner’s personal name. Check availability and then register it with the appropriate county clerk office. The cost will vary between counties.

This procedure is necessary when registering a corporation, limited liability company or partnership. But it is optional for businesses based upon sole proprietorships.

Business Permits and Licenses

The State of New York offers a useful quiz that will tell you what licenses or permits you need.


Corporate names must be unique. To make sure a name is not in use, perform a thorough search of online databases and other records. There is a database of corporations registered in New York. Search at New York Corporation.

Or request a search of name availability by sending name or names to the Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231.

Corporate Name Reservations

A business owner may want to reserve a certain corporate name if they do not plan to file a Certificate of Incorporation right away.  The filing fee is $20.00 and the name that they submit will then be on reserve for a period of 60 days. Find the application form to reserve a corporate name at Reserve a New York Corporation Name.

Local Permits and Licenses

Make sure to check out this helpful directory of all the New York county clerks.

The New York Division of Corporations with the New York Department of State is where you can file paper forms or file online.

Tax Registration

So all needed forms, instructions, and registration are with the New York State Department of Taxation and Finance.

Start a New Business in New York – Virtual Offices

Alliance Virtual Offices has New York virtual business office space in the following cities.

New York City and Long Island

Alliance has space in the Bronx, Brooklyn, and Melville, which is on Long Island. They also have space in New York City (Manhattan), and in Southampton, another town on Long Island.

North of New York City

Alliance also has office space in Albany, New Rochelle, Rochester, and White Plains.

So go to Regus for Buffalo, Rye, and Tarrytown.

Also, go to DaVinci for these cities.

New York City and Long Island

Regus has space in Hauppauge, Hicksville, Manhasset, and Valley Stream, which are on Long Island.

DaVinci has space in East Northport (Long Island), Fresh Meadows, and Garden City (Long Island). They also have space in Jericho and Uniondale. Those towns are both on Long Island.

North of New York City

DaVinci has space in Corning, Harrison, Malta, New Paltz, and New Rochelle.

So for Binghamton, Syracuse, or Watertown, and for other parts of the state, ask local business owners. Or try computer user groups.

Other options are virtual business office space in nearby states. These are Connecticut, Massachusetts, New Jersey, Pennsylvania, and also Vermont.

Start a New Business in New York – Establish Business Credit

Company credit is credit in a business’s name. It doesn’t link to an entrepreneur’s individual credit, not even if the owner is a sole proprietor and the only employee of the company.

Accordingly, a business owner’s business and individual credit scores can be very different.

The Benefits

Because company credit is distinct from individual, it helps to secure an entrepreneur’s personal assets, in the event of court action or business bankruptcy.

Also, with two separate credit scores, a small business owner can get two separate cards from the same vendor. This effectively doubles purchasing power.

Another advantage is that even startup companies can do this. Going to a bank for a business loan can be a formula for disappointment. But building company credit, when done right, is a plan for success.

Personal credit scores depend upon payments but also other elements like credit usage percentages.

But for business credit, the scores truly just hinge on whether a company pays its invoices timely.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Start a New Business in New York – Company Fundability

Building business credit is a process. A small business must be Fundable to lenders and merchants.

Hence, a company will need a professional-looking web site and email address. And it needs to have website hosting from a company like GoDaddy.

Also, company phone numbers must have a listing via ListYourself.net.

At the same time, the company phone number should be toll-free (800 exchange or the equivalent).

A small business will also need a bank account devoted solely to it, and it needs to have every one of the licenses essential for running.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Working with the Internal Revenue Service

Visit the IRS web site and acquire an EIN for the company. They’re totally free. Select a business entity such as corporation, LLC, etc.

A business can get started as a sole proprietor. But they should switch to a sort of corporation or an LLC.

This is in order to limit risk. And it will make the most of tax benefits.

A business entity will matter when it concerns tax obligations and liability in case of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and tax obligations. No one else is responsible.

And never look at a DBA filing as being anything beyond a steppingstone to incorporation.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Starting the Business Credit Reporting Process

Start at the D&B website and get a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a business in their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing this, Experian and Equifax will have activity to report on.

Vendor Credit

First, you should establish trade lines that report. This is also referred to as vendor credit. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get more credit.

These types of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are typically Net 30, instead of revolving.

Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, like within 30 days on a Net 30 account.

Vendor Credit – It Makes SenseStart a New Business in New York Credit Suite

Not every vendor can help in the same way true starter credit can. These are merchants that will grant an approval with nominal effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 3 of these to move onto the next step.

Start a New Business in New York – Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and attend to any mistakes as soon as possible. Get in the habit of taking a look at credit reports and digging into the details, and not just the scores.

We can help you monitor business credit at Experian, Equifax, and D&B for 90% less.

Update Your Records

Update the information if there are errors or the relevant information is incomplete.

Start a New Business in New York – A Word about Building Business Credit

Always use credit responsibly! Never borrow more than what you can pay off. Keep an eye on balances and deadlines for repayments. Paying off on time and completely will do more to raise business credit scores than virtually anything else.

Growing small business credit pays off. Good business credit scores help a company get loans. Your loan provider knows the company can pay its financial obligations. They know the small business is authentic.

The company’s EIN links to high scores and credit issuers won’t feel the need to request a personal guarantee.

Business credit is an asset which can help your company in years to come.

Learn more here and get started toward opening a new business in New York.

Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country

New York’s Response to COVID-19

On March 8, New York City Mayor Bill DeBlasio announced the City will provide relief for small businesses across the City seeing a reduction in revenue because of COVID-19. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero interest loans of up to $75,000 to help mitigate losses in profit.

The city is currently on a lockdown. Since New York is now a major site for the novel coronavirus, expect more changes soon.

New York State (Outside New York City)

On March 17, Senator Pam Helming and Assemblyman Colin J. Schmitt called for the establishment of a $890 million Small Business Emergency Assistance Fund for the State of New York. The $890 million would come from state settlement funds that are currently earmarked for use during economic uncertainty.

By April 10, the New York State Senate had created their own web page on the novel coronavirus.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the seasoned Finance Writer and a former content manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

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