Thinking about starting your own small business in New York? Competition in this state is fierce, but the first thing you’ll need to focus on is a business name. There are many businesses in the Empire State, so thinking of a name could be a challenge.
Aside from coming up with a catchy, descriptive name, the name you select must also be available in the state of New York. Businesses can not have the same name, so if there’s a business operating with the name you want, you’ll have to pick something different. To help, we’ll explain how to conduct a business name search in New York and offer steps to set up your LLC.
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How to check business name availability in New York
Now that you thought of a name for your business, the next step is to find out if the name is free for you to use. You can visit the New York Secretary of State website or Department of State Divisions and Corporations website to search for all the registered businesses. Here is how:
1. Visit the New York Department of State Website
Now that you are on the New York Department of State Website, go to the Division of Corporations section and look for the Corporation and Business Entity Database. You will find a business entity name search tool, and you can use it to find any registered businesses in the state of New York.
2. Use the search tool to check for name availability
The search tool is somewhat easy to use. You can do an in-depth search by searching the entity name, the entity type, or if you are not sure, you can also search for which letter the business name begins with. In your case, since you just want to find out if the name is available, you can search the entity name by typing in the exact name or phrase.
3. See results and availability
Type in the name or names you thought of on the Entity Name search and click on “Search Database.” If there are no results that match the exact keyword you typed in, then the name you thought of for your business is free for you to use. The next step is to reserve the name to make sure no one else beats you to it.
4. Consider reserving a name
After running a New York business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
New York allows business owners to reserve a name for 60 days for $20. ($10 fee + a $10 handling fee).
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of New York, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your New York business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your New York company?
As you research available business names in New York, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your New York business
Ready to set up your business in NY? Here’s what you do:
1. File your Articles of Organization
Visit the New York Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in New York, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In New York, the cost is $200.
4. Wait for approval
New York will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
New York small business facts
As mentioned, creating a blossoming business in this concrete jungle is not a walk in the park, which is why you should gather all the necessary data to create business strategies that would work. Here are some small business statistics in the state of New York brought to you by the U.S. Business Administration:
- There are 2.2 million small businesses in the state of New York, which makes up for 99.8% of all businesses. It is a lot compared to most states, making the competition very fierce in this state.
- These small businesses employ over 4 million people, which is over 50% of all New York state employees.
- In the third quarter of 2018, New York grew at an annual rate of 2.8%, which is a bit slower than the entire United States growth rate.
- The unemployment rate in the state of New York went down from 4.5% in February 2018 to just 3.9% in February 2019.
- The firms with the largest share of small business employment are firms that have fewer than 100 employees.
- 460,385 loans under $100,000 were issued by New York lending institutions in 2017.
- The median income for individuals who are self-employed at their own incorporated businesses was $52,490 in 2017. The median for self-employed individuals at their unincorporated firms was $26,356 in the same year.
- The number of startups in the third quarter of 2017 was 15,299, generating over 56,000 jobs. However, in that same time period, 15,062 firms exited causing the loss of over 58,000 jobs, which is a tad bit more than the jobs generated.
- The industry with the most employees in New York is the health care and social assistance industry with 603,220 small business employment. It is followed by the accommodation and food services industry, employing over 560,000 people in small businesses alone.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in New York:
Why is it so important to check on business name availability?
New York will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
How do I dissolve a business in New York?
Dissolving your business in New York is an easy process. You will need to pay a filing fee for your Certificate of Dissolution, which costs $60, and an extra $25 for expedited service. You will need to obtain written consent from the Tax Department and pay all your taxes before you can dissolve your business.
How to hire employees in the state of New York?
If you are starting a business and want to employ people to work for you, you will need to obtain licenses, an Employer Identification Number (EIN) from the IRS, and consider getting insurance in place, before bringing an employee on board.
What’s the purpose of an EIN?
An EIN is a unique nine-digit number given to your business. This number will stay with your company for its lifetime and serves as a tax identification number. An EIN is also required to open business bank accounts.
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