Starting A Business
This page contains general information for starting a business here in Hornell. Use this as a refrence guide for general business requirements but not as legal or financial advice. Filing fees and tax infornation are current as the date of this publication,but you should verify them to prior to finalizing your business plans. We suggest you discuss your business plans with an attorney and or an accountant.
State Licenses or Permits
Some businesses require specific New York State permits. The Governer's Office Of Regulatory Reform (GORR)GORR defines a permit as any required license,registration, or similar for of authorization required by New York State.Examples of businesses requiring a permit are: motor vehicle repair shops,beauty salons,food establishments,real estate sales, and any child day care centers.For Assistance in Identifying New York State permit requirements, Contact
Governor's Office of Regulatory Reform
Permit Assistance Unit
Po Box 2107
Albany,New York 12220-0107
1-800-342-3464 or 518-474-8275
www.gorr.state.ny.us
Email: permits@gorr.state.ny.us
Permit Database www.nys-opal.com
Local Permits
A person contemplating starting a business should be aware of the local laws. It is important to contact the village,town or city and country clerk where the business plans to locate. Examples of local considerations are zoning,parking,sign regulations,and certain occupational licenses such as auctioneers,electricians and plumbers. It is adviseable to contact your local goverment first.
Legal Structure
The most common forms of business organizations are: Sole proprietor, partnership,limited liability company,and corporation. If you plan to conduct business unser a name other than your own,you must register the name. Keep in mind that registering is NOT permission to conduct business. The following is a brief outline of the mose common business structures
*Sole Proprietorship : The simplest form of a business structure owned by one individual is a sole proprietorship. All business responsibilities and decisions are those of the single owner. The owner of a sole proprietorship has unlimited liability for the business.
Form: Certificate of Conductiong Business as A Sole Proprietor. Purchase this form from a legal stationery store in New York or thru Blumberg Forms at 1-800-529-6278 or thru the company website at www.blumberglegalforms.com. Complete and notarize the form and then file it with the county clerk in each county the business is located. You usually need three copies: the original for the county clerk,one for the bank, and one for the business
Fee: $25 plus $4-$5 for each certified copy.(The filing fee in the five counties comprising New York City is $100; certified copies $10
*Partnership : A partnership is the relationship between two or more persons or companies that carry on a trade or business together. In the Absence of a partnership agreement, the NYS Partnership Law sets forth the right and the duties of the partners.
Form: Certificate of Conducting Business as Partners. Purchase this form from a legal stationery store in New York or thru Blumberg Forms at 1-800-529-6278 or thru the company website at www.blumberglegalforms.com. Complete and notarize the form and then file it with the county clerk in each county the business is located. You usually need three copies: the original for the county clerk,one for the bank, and one for the business
Fee: $25 plus $4-$5 for each certified copy.(The filing fee in the five counties comprising New York City is $100; certified copies $10
Limited Partnership: THe NYS Department of State requires the filing of a certificate.Limited partnerships must publish a notice in two newspapers in the county where the business is located each week for six successive weeks specifying the details of the limited partnership within 120 days after filing. The filing fee for a limited partnership is $200 (See Corporations for contact information)
Limited Liability Company: A Limited Liability Company is a unincorporated business organization of one or more persons having limited liability for the contractual obligations and other liabilities of the business,other than a partnership or trust.
Form: The NYS Department of State requires the Filing of Articles of Organization.(See Corporations for contact information) An LLC must publish a notice in two newspapers in the country where the business is located each week for six sucessive weeks specifying the details of the limited liability company within 120 days after filing.
Tax Information: The NYS Department of Taxation and Finance's Publication 16, "New York Tax Status of Limited Liability Companies and Limited Liability Partnerships," explains tax requirements for annual filing fees and how to confirm to New York personal income tax and corporation franchise tax. This publication is available online. Refer to "Tax Information" section for additional requirements and contact information 
Corporations: A New York State Corporation is a entity seperate and distinct from the individual(s) who own and
manage the business. A corporation can sell,buy and inherit property in its own name and is legally endowed with rights,powers,and duties in the conduct of lawful activities. Business corporations operate for profit and can raise capital by selling shares of interest in the corporation. A corporation's debts and obligation are distinctly its own.
Form: Certificate of Incorporation. Obtain this form from the NYS Department of State,purchase it from a legal stationary store,have it prepared by an attorney,or apply online at NYS opal
Fees: $5 for each name search,$20 for reservation of name,$125 for Certificate of Incorporation, and a minimun of $10 to cover stock issuance
Tax information: Corporations must file a franchise tax report and pay a franchise tax for all part of each calendar/fiscal year the corporation exsists. They must file federal tax returns. Refer to this website's
"Tax Information" for contact information .
S Corporation: Under Section 1362 of the Internal Revenue Code,certain small business corporations may report income on personal tax returns.Individual shareholders who wish to obtain this option must file federal Form 2553. Once the Internal Revenue Service grants approval,you must file Election Form CT-6 with the NYS Department of Taxation and Finance.
Not For Profit Corporation: Not-For-Profit corporations cannot distribute assets,income and profits to the benefit members,directos or officers except to the extent permitted by statue. The filing fee is $75 with the NYS Department of State. You must obtain approval from the Internal Revenue Service before requestion approval from the NYS Department of Taxation and Finance.
Foreign Corporation: The NYS Department of state authorizes an out-of-state corporation to conduct business in New York. The Basic filing fee is $225 and a certificate of exsistance or good standing is always required from the hurisdiction that originally organized the corporation.
For infomation contact:
NYS Department of State,Division of Corporations
41 State Street, Albany, NY 12231-0001
(518)473-2492
Tax Information
New York: The NYS Department of Taxation and Finance's Publication 20, "New York State Tax Guie for New Businesses," provides basic information about New York Tax Law and regulations. This publication outlines the procedures to follow and forms to file with the NYS Department of Taxation and Finance to fulfill your tax obligations.
Sales and Use Taxes: If your business will sell tangible personal property or provide specific services in New York, the business is required to collect and remit NYS sales and local tax to the NYS Department of Taxation and Finance, usually on a quaterly basis. Publication 750, "A Guide to Sales Tax in New York State" has information reguarding your obligations and how to obtain a "Certificate of Authority" The NYS Department of Taxation and Finance reccomends filing for authority at least 20 days before providing taxable sales or services. You can apply online for a Certificate of Authority at :www.nys-opal.com
Forms and Publication are available from:
NYS Department of Taxation & Finance
Sales Tax Registration
W.Averill Harriman Campus, Albany NY 12227
Forms: 1-800-462-8100 or (518)485-6800
Information: 1-800-225-5829 or (518)485-6800
Nationwide: 1-800-972-1233
Federal: For federal tax requirements contact the Internal Revenue Service for "The Small Business Resource Guide". This guie contains information on your federal tax obligations such as estimated taxes and self-emprovement tax,as well as various publications for starting a business. Refer to the "Federal Identification Number" section for contact information
Federal(Employer) Identification Number: An Employer Identification Number (EIN), also known as a federal tax identification number, identifies a business entity. Generally, all businesses need a federal tax identification number. An EIN is a nine-digit number that the Internal Revenue Service assigns to a business. The IRS uses the number to identify taxpayers that are rewuired to file various business tax returns such as those for alcohol,tobacco, or firearms. Employers sole proprietorships,partnerships,limited liability companies,and corporations (including "S" corporations and not-for-profit organizations) as well as other business entities use EINs.
Form: SS-4 Application for EMployer Identification Number
For Information contact:
Internal Revenue Service
1-800-829-1040 or 1-800-829-4933
To apply online : www.irs.gov/businesses/small
Employer Responsibilities
The Federal government requires all employers to have their employees fill out a Form I-9 and Form W-4. Federal employment taxes required are: Federal Income Tax Witholding,Social Security and Medicare Taxes (FICA),and Federal Unemployment Tax (FUTA) The IRS' Publication 15,"Circular E,Employer's Tax Guie" explains Federal Tax responsibilities as an employer.
Form I-9,Employment Eligibility Verification.Obtain this form from the U.S. Citizenship and Immigration Services at 1-800-357-2099 or www.uscis.gov
Form W-4, Employee's Witholding Allowance Certificate. Obtain this form from the Internal Revenue Service. Call Forms/Publications at 1-800-829-3676 or information :1-800 829-1040 or visit www.irs.gov
New York State requires all employers to provie: Unemployment, Workers' Compensation, and Disability insurances as well as a comply with wage reporting and withholding tax requirements. The NYS Department of Taxation and Finance's Publication NYS-50, "Employer's Guide to Unemployment Insurance,Wage Reporting,And Withholding Tax," explains NYS tax responsibilities as an employer.
Unemployment Insurance: An employer who begins hiring employees to work in New York State is required to notify the NYS Department of Labor promptly to determine their appropriate tax status. Conditions for liability differ among not-for-profits,government,household/domestic,argicultural,and all other employees.
For information Contact:
NYS Department of Labor
Unemployment Insurance Division
State Campus,Building 12, Albany, Ny 12240
To apply online : www.nys-opal.com
Workers'Compentation Insurance: Provides protection to the employer from liability in the event of an on-the-job injury resulting in employee disability or death and to provide monetary relief and medical benefits to the injured worker. This insurance is available through a private insurance carrier or the New York State Insurance Fund at 1-866-697-4332 or www.nysif.com
Note: Workers' Compensation is also available to sole proprietors or partners who have no employees.
Disability Insurance: Provides for the payment of cash benefits to employees who become disabled because of injuries or sickness that have no connection to their employment., and for disabilities arising from pregnancies. Employers and employees may pay for this insurance jointly or solely by the employer. This insurance is available through a private insurance carrier or the New York State Insurnace Fund at 1-866-697-4332 or apply online at: www.nysif.com
Other Sources of Help for Business
Empire State Development
Business Assistance Hotline: 1-800-782-8369
New York State Small Business Development Center
1-800-732-7232(SBDC) www.nyssbdc.org
This page design came from the publication of "Starting a Business" Issued by the New York State Governor's office of Regulatory Reform,brought to you by Hornell Partners for Growth, "Serving our community is our main Goal".