Also read our Guide of Resources for Immigrants
While this guide can be a blueprint for your business plan, we recommend seeking legal advice from the appropriate party listed below in each category. This guide is for anyone living in New York, regardless of immigration status.
No federal or state law prohibits an immigrant with no legal immigration status from starting his or her own business. However, employing a person without legal status is against the law, and it could result in fines and, sometimes, criminal arrest.
Before starting your business it is recommended to develop a business plan, seek out advice, and understand the industry in which you plan to do business in. Here are some resources to help you create a business plan: Register for Business Planning Courses, Business Advice Courses, and Writing a Business Plan.
Once you have developed a business roadmap, these are the necessary steps recommended by New York City to start a business:
Choosing a legal structure to start a business:
The business structure affects how much you pay in taxes, the ability to get funding, the paperwork you need to file, and personal liability. It is the established entity that you will do business with.
These are the four main business structures:
- Sole Proprietorship: A sole proprietor owns an unincorporated business by himself or herself. This structure gives you complete control of your business which means that your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for debts and obligations of the business. This structure can be a good choice for low-risk businesses and owners who want to rest their business idea before forming a more formal business. Note: banks are sometimes hesitant to lend to sole proprietorships. (Here is a list of the benefits of being a sole proprietor. Link.)
- Partnership: A partnership is a business structure in which two or more people do business together. There are two kinds of partnerships: Limited Partnerships (LP) and Limited Liability Partnerships (LLP). A limited partnership has one partner with unlimited liability, and all other partners have limited liability. Partners also share the expenses, labor, skill, profit, and losses of the business. Note: Partners are not considered employees.
- Limited Liability Company: an LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances. Your assets won’t be at risk if the LLC faces bankruptcy or lawsuits. Note: LLC members are considered self-employed and must pay self-employment tax contributions towards Medicare & Social Security. (Benefits of LLC. Link.)
- Corporation: Corporations are companies that are separate from their owners. These business structures can be held legally liable and generally take the same deductions as a sole proprietorship to figure out its taxable income. Corporations are the highest protection for owners from liability— however, the cost of a corporation is higher than other structures, and it is more complex. There are five types of corporations: C Corp, B Corp, S Corp, Close Corporation, and Nonprofit Corporation. Please see the link for more details on each type of corporation.
For free legal advice regarding business structures and more, click here.
Also Read: Health Care Access for Immigrants in New York
Register Your Business:
Sole Proprietors and General Partnerships can file for Business Certificates at the appropriate County Clerk’s Office.
Bronx: 854 Grand Concourse, Room 118. Bronx, NY 10451
Brooklyn: Supreme Court Building 360 Adams St, Room 189 Brooklyn, NY 11201
Manhattan: Supreme Court Bldg 60 Centre St, Room 103B New York, NY 10007
Queens: 88-11 Sutphin Blvd, Room 106 Queens, NY 11435
Staten Island: 130 Stuyvesant Place Staten Island, NY 10301
To determine whether the name you wish to use for your business is available, you can complete a name search at the County Clerk’s office. Here is the link.
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Corporations, Limited Partnerships (LP) and Limited Liability (LLC) must file a Certificate of Assumed Name with the NYS Department of State:
NYS Department of State
Division of Corporations, State Records and Uniform Commercial Code
One Commerce Plaza 99 Washington Ave. Albany, NY 12231
There are some limitations when filing a name at the NYS Department of State. No business name should be identical to other LLCs, Corporations and LPs. Here is a list for things to consider when choosing a name for your business. Link.
For free legal advice on registering your business, click here.
Also Read: Mental Health Resources for Immigrants in New York
Apply for an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a unique nine-digit number that identifies a business for tax purposes. The EIN is needed to open business bank accounts, apply for business licenses and file tax returns.
Applying for an EIN is a free service the Internal Revenue Service (IRS) offers. You can apply online, by fax, mail or phone. Here is the link where you can apply for an EIN.
Note: EIN services are free. Do not apply with websites or organizations that charge a fee.
Also Read: Guide on how to get free legal help for immigrants in NY State.
Registering for a Sales Tax Vendor (Certificate of Authority)
Businesses that sell tangible personal property (products) or taxable services in New York will need a Certificate of Authority— the Certificate of Authority will allow your business to collect tax on sales. Here is a list of some goods and services that are taxable:
- tangible personal property (unless specifically exempt);
- gas, electricity, refrigeration and steam, and telephone service;
- selected services;
- food and beverages sold by restaurants, taverns, and caterers;
- hotel occupancy
- certain admission charges and dues
(source: NYC.GOV)
For more information contact the NYS Department of Taxation and Finance
Getting Insurance for Your Business
While different business structures protects against certain types of liabilities (e.g., separate personal liability from an LLC), a Business Insurance will protect you from unexpected costs— accidents, natural disasters, and lawsuits.
There are many types of insurance that can be bought for a business. Assessing which one will work best for you will depend on the number of assets and the protection you seek. The Small Business Administration has compiled a list of steps to consider before buying insurance. Here is the link.
The information above lists the primary steps to help you start your business. Once you have registered your business, you will need to define your financial needs, look for incentive programs, and start looking for a place to operate. Like buying insurance, these steps vary depending on the type of business you will operate. For example, someone selling products or services online will not have to look for a storefront to rent but might have to look for storage.
NYC business created a step by step questionnaire to further help you determine which permits, and licenses you will need.
