How to start a business in New York
One of the cities that offers the best opportunities to start a business in the United States is New York. It is a leader in innovation, has infrastructure and emerging technology to develop a business. But how to start a business in New York, riding a Hispanic Entrepreneurs we tell you how to do it
Why start a business in New York?
New York City is an economic powerhouse, which has made it one of the commercial capitals of the world. Offers diversity, technology, innovation, talent, interconnected neighborhoods and neighborhoods. In addition to having a local government that supports the economic growth of its inhabitants.
Studies indicate that it owns at least 47 “Fortune 500” companies, that is, the most profitable in the world. It has more than 100 educational institutions and is the largest ecosystem to start any business.
The New York City Economic Development Corporation made public investments to ensure that the city remains a great business center. Boost the economy by empowering technology, science, healthcare, industry, manufacturing, and fashion.
On the other hand, if you are Latino in New York you will get along without problems because there is an important fusion of cultures. About 200 languages are spoken and 40% of the population was born outside the United States.
Likewise, the headquarters of the United Nations Organization is in the city, as well as more than 100 consulates. This makes it a global metropolis. Another key point is that there is a highly prepared workforce, at least 2.3 million have a higher education qualification. In this respect it surpasses Los Angeles, San Francisco, Philadelphia, Boston and other cities.
To support entrepreneurship and innovation, you have broad access to shared workspaces. There are more than 200 in its 5 districts, so it is ideal for professionals, freelancers, creatives and entrepreneurs who come from elsewhere.
Being a business center, it tends to host hundreds of events and conventions. In this way, it has consolidated a community of professionals who share and support established and emerging businesses. Most importantly, it offers a host of financial incentive programs, in short, it's a business-friendly environment.
Previous steps to be an entrepreneur
The first step is to develop the business concept. This is required to convey to others the value of the idea and to develop the business plan. You must answer questions such as: What is the product or service? What is its purpose? Where is it located in the market?
You also have to know what type of customer you are targeting, how you can meet the customer's needs. As well as what differentiates it from the competition, how it will reach the customer and where it will be sold.
Show that you can manage your finances well in order to move to the next level. This is the beginning of establishing a relationship with the lenders, opening your credit history and credit rating. Through these last two you will test how you manage your money, a key element in the United States.
To start generating credit, obtain an Individual Taxpayer Identification Number (ITIN) and open a bank account. Also apply for a secured credit card or credit-building loan.
To start the business you will surely need external funds. Define how much you will need and for what. You can use your savings, family financing, loans from non-profit entities or a business credit card.
Then structure the business, make it clear what is invested, the obligations of each one, manual to resolve conflicts, etc. Study the location of the venture and the space you need.
How to start a business in New York
When you have the aforementioned preparations ready, you should dedicate yourself to complying with the legal aspects, such as processing permits and licenses.
1-Register the business
As in all American cities, the company must be registered. Sole proprietors and general partnerships are registered with the corresponding county clerk. LLCs, corporations, and limited partnerships with the New York State Government.
2-Get the ID
Apply for sales tax identification at the New York State Department of Taxation and Finance. It is done through on.nyc.gov/taxid to be able to put your products or services up for sale.
It is also necessary to request the Employer Identification Number (EIN) at on.nyc.gov/ein. But if you are a sole proprietor you can use the Social Security number.
3-Find out the requirements of your type of business
It is essential that you know what are the requirements that you must meet for your type of business. In this link you can get a personalized list for your business: https://www1.nyc.gov/nycbusiness/wizard.
4-Ask a professional to evaluate the location
If you need to build something on the premises the city government should be notified. Only a licensed professional can submit the project on your behalf. To process the permit you have to visit nyc.gov/buildings, search "How to obtain a permit".
5-Comply with labor laws
This goes beyond paying the minimum wage ($ 15 per hour) to employees. New York State oversees wage regulations, so employers must be aware of the requirements and regulations on this matter.
According to the Wage Theft Prevention Law, private businesses must provide their employees with a payment notice. This must contain data on the rate of pay (overtime if applicable), how you are paid (hour, shift, week, day, etc).
Also indicate payday, employer's Doing Business As (DBA), employer's contact information. As well as any minimum wage subsidy such as tips, food, accommodation, among others. If the business requires help with making payments, they can call 1-888-4-NYSDOL (1-888-469-7365).
You may need to purchase workers' compensation insurance, civil liability and disability insurance. Some of these are required for licenses and permits.
The New York Department of Small Business Services indicated that small businesses employ more than half of the workforce. For this reason they work to help, especially immigrants. The department offers free services to SMEs.
Other requirements to open a business in New York
Don't forget to schedule pre-operative visits with the city government. Especially with the New York City Department of Health and Fire Department and other regulatory agencies.
They include the Department of Consumer and Worker Protection, environmental protection, sanitation, spirits, etc.
Put up worker protection posters, set up the space to maximize recycling. It also publishes the prices, the refund policy and other mandatory posters (https://www1.nyc.gov/site/dca/businesses/signs.page). What remains is to implement the marketing and marketing strategy to publicize the venture.
The authorities of the City advise to keep the business open, it is necessary to follow the sanitary regulations focusing on the collection of waste. Keep the sidewalks clean and free of objects, publish prices, forms of payment and reimbursement. Apart from solving customer complaints and dealing with violations on time and paying fines.
Success story starting up in New York
An example of success is that of the US Training Alliance, co-founded by the Spanish Sandra Martín. She recommends working in New York due to its multiculturalism and possibilities for professional growth.
The company started in New York in 2017 offering internships and job opportunities in the United States and other parts of the world. Martín stressed that setting up a business in this city is easy and fast. It does not require a minimum investment to establish the entities and the constitution process is carried out before the state institutions. It is not necessary to do it before a notary.
Martín recommends looking for information about the entire process and going to the Small Business Administration for advice. Are you ready to undertake?
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