Starting a new business is exciting. But before you can open your doors or take on your first client, you need to make sure you’re setting yourself up for success. And that means making sure you’re ticking all the legal boxes and requirements before getting started. Though every state is different, there are a few things New York business owners should consider before they open their doors. Here’s what your New York business law attorney wants you to keep in mind.

legal considerations for new york business

Choosing the Right Structure Matters

The right business structure can make all the difference in how you run your company and how much liability you take on as you grow your business. There are several options to choose from, and while it’s always a good idea to consult with an experienced New York business law attorney before you make your choice, it can be helpful to understand your options. Here’s a quick overview:

  • Limited liability companies (LLCs): LLCs separate your business from your personal assets. This helps protect your personal assets from seizure if something happens with your business. 
  • Sole proprietorships: If you’re starting a business on your own, this is the default and is the easiest structure to set up. 
  • Partnerships: These outline the duties you and your partner or partners are expected to fulfill as you get your business up and running. 
  • Corporations: This structure lets you create a separate business entity and may offer additional tax benefits as you grow.  

Be Mindful When Choosing a Name

Your business’s name can set the tone for your company. Be mindful when choosing your name and be sure to do your due diligence. Make sure no other companies similar to yours in your area are using the same name. This could help you avoid a lawsuit down the line.

Find Ways to Protect Your Intellectual Property

As you get things up and running, you’ll quickly discover that you have intellectual property that could take business away from your company if a competitor starts using it. Do what you can to protect your intellectual property from the beginning. This might mean creating detailed employment contracts outlining what is considered business property and registering trademarks and copyrights as needed.

Don’t Neglect Your Business’s Insurance

Liability lawsuits can bankrupt your business. That’s why business insurance is so important. At a minimum, you’ll want to invest in liability insurance that meets or exceeds any required by the state. If you’re not sure how much coverage you should invest in, speak to your insurance agent as soon as possible. And remember to review your coverage needs every year or so to make sure you have enough in place.

Set Yourself Up for Taxes Correctly

Running a business means filing taxes, and unless you’re acting as a sole proprietor, you’ll need to request a tax ID number from New York State as well as an employer identification number (EIN) from the federal government as soon as you start hiring staff members. 

Work With an Experienced New York Business Law Attorney

If you’re ready to get your business off the ground on the right foot, the best thing you can do is work with an experienced New York business law attorney from the very beginning. Contact us today to schedule a consultation.