What You Need to Know If Starting a Business in Long Island

Long Island is the perfect location for starting your own business for several reasons. It is close to New York City, and it offers geographical diversity and a large number of industrial areas close to the major highways and railways. It also provides convenient access by air and water. These are just some of the reasons that starting a business in Long Island is an excellent choice. Take a look at what you need to do to accomplish a successful launch.
Starting a Business in New York State
Before choosing your office space and buying furniture, take a step back and review the basics. Ask yourself the critical question—what type of business are you starting? The basic forms of business organizations in New York are sole proprietorships, partnerships, corporations, and limited liability companies. Which one of these you should choose depends on how you wish to control and profit from the business. It will also affect your liability for lawsuits, the debts of the business, and the taxes you pay. The ideal choice for your specific business depends on your goals and your personal style. It is also vital that you review the options with an attorney or a financial advisor.
Sole Proprietorship
A sole proprietorship is the simplest form of business structure for those starting a business on their own. This way, the owner has all the authority. However, this type of business structure carries its own risks, as there is no one else to share responsibilities and potential liabilities with.
Partnership
As it is apparent from the title, two or more people agree to share ownership of the business. In addition to that, they share management responsibilities and liability for a business. There are two sub-categories of a partnership:
- 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 liability outside their personal investment.
Corporation
Starting a business corporation is the most complex and expensive way to structure a business. On the other hand, it offers significant protection for the owners. A corporation is an entity that is legally separate from its owners. This means that it ensures continuity and protects the assets of the owners—the shareholders—from the liabilities and debts of the whole corporation.
Limited Liability (LLC)
A limited liability company offers shareholders the protections of a corporation in addition to the tax advantages of a partnership.
Resources for Starting a Business in Long Island
One of the best resources for New Yorkers looking to start their own business in Long Island is the New York Small Business Development Center. The Center operates out of numerous offices across the state, including Stony Brook University and Farmingdale College on Long Island. In addition to that, they have multiple satellite locations in communities across Long Island and the state of New York. At the Center, you can have the opportunity to work one on one with a business advisor to discuss everything about starting a business in Long Island, including:
Your starting point—creating a solid business plan- Learning about accounting and financial planning
- Working on a cost-analysis
- Getting tips on how to market your business
- How e-commerce can grow your business
- Guidance on employee management and Human Resources
- Understanding permit and licensing requirements
Renting Storage When Starting a Business in Long Island
If you are moving your business to Long Island, you may not have the facilities you need straight away. It might take time to find the perfect space, and by renting a storage unit, you will have your inventory nearby while you shop around for office space. You may also struggle to financially support a large-enough space for your business initially. An organized storage unit in the vicinity of your temporary office location will absolutely come in handy for anyone starting a business in Long Island.
Registering a Business
Generally speaking, all businesses must be registered with a government agency. However, sole proprietorships, which are small, one-person businesses, are allowed to operate in a variety of ways without formal registration. In certain instances, small partnerships are also possible to not register. Make sure that you check with your lawyer which category you fall under so that you can adequately cover all official formalities. The last thing you want is for details to fall through the cracks and for your business to suffer in the long run.
Registering a Business Name in New York
When starting a business in the State of New York, you are required to register your business name when you establish your business entity. This rule is vital for LLCs and corporations. After completing the first step—choosing your business structure—you need to search for available business names. Following this, the state must officially approve your entity name before you can move forward.
Register for Taxes
When starting a business in Long Island, you need to register with the New York Tax Department. To do this, you must familiarize yourself with the state and local tax requirements. These may differ depending on the type of business you are starting. The best idea is for you to seek advice from a legal professional. Although you are welcome to take a look at New York’s Department of Taxation and Finance website to familiarize yourself with the tax obligations, your lawyer will make it much easier for you. They will also prevent you from making the wrong choices or misinterpreting information. For example, businesses that sell products or perform certain services need to collect a sales tax and obtain a Certificate of Authority. There are many similar examples of taxes that you need to be aware of before you are fully up and running.
Obtain Your EIN
The Employer Identification Number (EIN) is a number assigned by the IRS to businesses operating in the United States. You should apply for an EIN with the IRS when starting a business in Long Island. Your business will need this in order to file income tax returns or payroll tax returns for your business. You will also need an EIN for a variety of activities vital to your business. For instance, you’ll need it to open a business bank account, apply for a business credit card, hire employees, or apply for a business loan.

