STARTING
A BUSINESS ON LONG ISLAND
Use this area as a reference
guide for general business requirements but not as legal or financial advice.
All fees and tax information should be verified prior to finalizing your business plans. We suggest you discuss
your business plans with an attorney and/or accountant.
Disclaimer: The information and links to various websites, including various non-governmental sites, are provided for your convenience. The information on this website is periodically updated, however, there may be omissions or additional requirements not represented here. This is unintentional and does not exempt any individual or institution from complying with the laws and regulations of the State of New York, the state your filing in and/or the federal government.
Starting
a business in New York State
There are four basic forms of business
organizations in New York: sole proprietorships, partnerships, corporations, and
limited liability companies — the form you choose will affect your ability
to control and profit from the business, your liability for lawsuits and the debts
of the business, and the taxes you pay. The "right answer" for your
business depends on your business goals and your personal style. This section
gives you some issues to consider, but it's also important that you review your
situation with an attorney or a financial advisor.
Sole
Proprietorship
This is the simplest form of business structure for a business
owned by one person. It offers absolute authority to the owner. On the other hand,
there's no one else to share the responsibilities and the potential liabilities
with you.
Partnership
In a partnership,
two or more persons agree to share ownership, management responsibilities, and
liability for a business. In a general partnership, all partners have unlimited
personal liability for all partnership debt. In a limited partnership, the general
partners are personally liable for the partnership debt, while the limited partner
has no such liability beyond his or her personal investment.
Corporation
This
is the most complex and expensive way to structure a business, but it also offers
important protections for the owners. A corporation is a legal entity distinct
from its owners. This ensures continuity and protects the assets of the owners
(i.e. the shareholders) from the liabilities and debts of the corporation.
Limited
Liability
A limited liability company (LLC) offers "members"
(essentially the same as shareholders) both the protections of a corporation and
the tax advantages of a partnership.
Search NYS Department of State Corporation and Business Entity Database
The Corporation and Business Entity Database includes business and not for profit corporations, limited partnerships, limited liability companies and limited liability partnerships, as well as other miscellaneous businesses. http://appsext8.dos.state.ny.us/corp_public/corpsearch.entity_search_entry
Registering an Internet Domain Name
If you're ready to start a business one of the first things you may also want to do is register an Internet domain name for your business. Domain names (web addresses) cost as little as $8.95 per year and work much like a lease where you have the right to use the domain for as long as you pay your registration fee. You can register a domain name for up to 10 years at a time and have the option to renew or extend the lease at any time. It is important that the buyer understand that failing to renew such domain could release it to the public and/or cause serious loss or hardship to an Internet business. You can search and register a domain name at: http://domains.searchen.com
