New York City is a huge metropolis filled with opportunities, which is why so many entrepreneurs are drawn there. If you’re one of those who want to start a business in NYC, you’ll need to not only have a great business plan. You’ll also need to research the legalities of setting up shop in New York, find alternative financing, and get the right kind of insurance.
4 Tips for Starting a Business in New York City
1. Study the rules
New York City has its own specific set of rules, regulations, and requirements for businesses. It’s imperative to research them in detail so you can avoid fines and various legal problems in the future.
Start with reading up on how to start a business in New York on the Better Business Bureau website. Next you’ll need to get some help from the NYC Department of Small Business Services. It will provide you with consultations on all the necessary permits. You can also use a Step By Step tool from NYC Business to determine which of those you’ll need exactly.
2. Find financing from alternative sources
If your plan to start a business in New York is daring, you might have a hard time with financing. Investing in small businesses here can be considered high-risk by many lenders. The situation gets much worse if you don’t have any collateral or other guarantees.
That’s why looking for alternative funding is a better choice than going to banks. You can consider angel investors, but those will need to see a solid business plan. Crowdfunding might be a good way to get at least a part of the money you need. You can also look into innovative financing providers, as they are more open to daring projects. Yellowstone Capital LLC for example has already helped over 20,000 businesses and its motto is ‘We Fund When Others Won’t’. That’s a great promise for a beginner with a dream and vision.
3. Choose the right business form
Unless you have some specific reasons to choose something else, you should go with LLC (limited liability company) or its variations. This business form is unique to the US and offers some fantastic advantages to entrepreneurs.
It allows you to get a lot of flexibility in regards to taxes and some regulations. You also get limited liability, which is the main benefit of an LLC.
4. Pick the perfect insurance policy
When you start a business in New York City, you’ll be required to get some specific types of insurance depending on your niche. Worker’s compensation, disability, and liability are all mandatory regardless of whether you run an LLC or a corporation.
You will also need to pick the types of coverage that matter most for your specific business. Consult an experienced broker or an insurance agent on this in order to design a coverage that will be best in your present situation. The New York Department of Financial Services offers more detailed information about insurance requirements and options in the NYC. Take your time researching those, as the policy will be a major expense for your new business.