Final Word

Starting a sole proprietorship in New York is easy. All that's necessary is to start business activities and, depending on your industry, get a relevant license. Having learned the steps of how to get started with a sole proprietorship, it's time to take a look at your business needs and put your new knowledge into action. This will help your business grow and follow best practices to protect it.

FAQs about Starting a New York Sole Proprietorship

What qualifies as a sole proprietorship in New York?

In New York, a sole proprietorship is when you own your business as a single individual.

Do you need a business plan to start a sole proprietorship in New York?

Legally no. However, having a business plan makes it easier to scale your business and give it a clear direction.

How much does it cost to start a sole proprietorship in New York?

Usually $25, but it may change depending on the county where you file your sole proprietorship in, and whether you want to rent office space or hire employees.

Is a business license required to start a sole proprietorship in NY?

Depending on your business activities, you may need a professional license to operate in certain New York counties. Check which licenses or permits your business requires through the New York State government’s website.

Can sole proprietors in NY hire employees?

 Sole proprietors can hire employees, but you’re going to need to get an Employer Identification Number (EIN). To register for an EIN, you can go on the IRS website.

Is a DBA required for New York sole proprietorships?

DBAs (doing business as) are only necessary if you plan to use a trade name for your sole proprietorship. To do this, you'll have to file an assumed name certificate with the county clerk's office where your business is conducted.

How are sole proprietorships different from other businesses in NY?

Compared to sole proprietorships, having a limited liability company (LLC) or corporation can be helpful when it comes to liability issues. If you're concerned about someone taking legal action against you, LLCs or corporations may be a good alternative because your liability is limited to the amount of your investment you put into those companies.

About the Author

Sarah Sharkey

Amalia Santa Maria

Personal Finance Content Writer and Editor

Copywriter and content creator writing technical articles on finance that allow an average person to easily understand and connect with financial concepts.

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