If New York City was a country, its economy would still be among the top 15 globally due to its massive finance, media and telecommunication industries. All that make the city an ideal place to do business in, and to facilitate your market entry to the Big Apple, we collected a few essential steps for you.
1. Decide on a business structure: The backbone of your business
When it comes to choosing a business structure in New York City, there are two main options. Firstly, you can found a corporation, a separate entity that accommodates directors, shareholders and officers – and also offers protection of liability to all owners. Please note, however: in some fields, such as medicine, law and architecture, you are required to found a professional corporation or PC. Your second option is a limited liability company or LLC, an entity that does not require any directors or officers and makes management and taxation a whole lot easier. LLCs have become the most popular structure of choice in the Big Apple, as their liability protection and less complex taxation system are very attractive to growing businesses.
2. Get business cards to make yourself remarkable
Even though we are living in the 21st century where almost everything is digital, some people still value a good old-fashioned, printed business card. Many people in the business world prefer this, as the connection seems a lot more genuine: two or more people speak in person and exchange contact information personally, eye to eye. In contrast to this, sending contact availabilities via text or email or attempting to connect over online platforms such as LinkedIN or XING is often thought of as impersonal. Business cards are also important as they are very cheap marketing tools to give people a good first impression of you and your business. In addition, cards can be distributed and shared between partner prospects very easily and are less often omitted than someone in a list of 500+ connections. So, a neatly designed card with a prestigious address and a local phone number is sure to increase the chances for success for your business.
3. Choose a suitable business address
Choosing a suitable business address in an expensive city like New York can be a big hassle. But luckily, nowadays there are a lot of substitutes to a standard brick and mortar office. Virtual offices, for example, allow your business to expand and grow internationally, without necessarily having to leave your country of residence (and cost only a fraction of real estate rent costs!). At Clevver, we have an offer that comes automatically with a real street address (in New York, we have a location on Madison Avenue) and a mail digitization platform that allows you to have your letters and packages sent to and processed at our address. On top of that, it’s also possible to book a local (even toll-free) phone number, and we can also give a full incorporation service for you in the US, taking a lot of weight off your shoulder with company formation.
4. Register your business and keep everything in mind to meet local regulations
After you have decided which business structure is the most beneficial to you and your business, you must register your company at a registered agent service. The registration requirements differ from state to state, however, the process is a lot easier when registering an LLC. This also applies to one person LLCs. Virtual registered agent services like we at Clevver can help you with registering your company from abroad.
5. Open company accounts: Bank cards and credit cards
To keep your personal and business expenses managed independently, we advise you to get a separate bank account for each. Business credit cards are important because they allow you to begin building up your company’s credit profile which in the future will help you qualify for bigger loans and credits from your bank. The process of opening a business account normally takes no more than a telephone call or a meeting, given that all required documents are signed by the appropriate members of the board. Credit cards are vital for businesses as they allow companies to invest more money into their business than they have. This could include office supplies, transportation and machinery which could be partially paid back by the government.
Now you’re ready to tackle NYC and the Empire State!
We hope that this article has convinced you and given you insights along with a few useful tips to make your business setup in New York a whole lot easier. You are now ready to penetrate the market of this incredible city that doesn’t seem to be slowing down any time soon. Good luck with your business!