Business

How Can I Turn My Small Business Into a Corporation?

Every business model that we see around us was once just an idea. The idea fell into the hands of some responsible visionaries who believed in it and executed every step carefully to make it a full-fledged business. The other name for this kind of business in the initial stage is Startup. And do you know the one place which houses a massive collection of business companies, a diverse startup community, and is called the startup capital by many? Well, it’s New York? It is a suitable place for anyone looking to start a corporation/business with financial communication, media, and various financial services. It is the place which is supremely known for its rapid business environment. 

Let’s discuss some simple steps that need to be followed to file for New York Corporation and to turn your small business into a corporation.

Step 1: Decide the Structure of your Business

Firstly, a basic structure needs to be decided for your business. The options are:

  • A ‘Doing Business as’: It’s not a separate structure, but like a different name that a partner or an individual uses for their business. Its short form is DBA.
  • A corporation is like a separate entity with a suitable kind of structure and includes shareholders, officers, and directors. It is somewhat a little more complicated than DBA but is undoubtedly a good choice for growing startups and companies seeking to fund. 
  • A Limited Liability Company is like an absolute solution if you’re looking to open up a corporation. It provides the facility of a separate entity and taxation. It has largely replaced the other two options because of the liability protection it offers but with fewer complexities. 

Step 2: Decide for a Business Name

Deciding on a business name seems like an easy task, but numerous legal and business-related problems can arise in this small task only. Some small things that need to be considered before deciding on the name are:

  • A basic name should be decided that is easy to pronounce and understand
  • The name shouldn’t get out date with time
  • Rapid web search for choosing the right one that doesn’t conflict with any other name
  • Trademark research is supreme to avoid conflicts
  • The name that you decided should be available

Step 3: Registration Process of the Business

Each state has got its procedures and requirements. And after choosing the basic structure and picking up an absolute business name, let’s see the basic requirements that are needed to register your business in NYC. The rules are different for the option that you choose in the first step. If it’s an LLC, you need to file an Organizational Article in the Corporation of New York. The LLC should also be published in a couple of newspapers in the initial 20 days of formation. Regular Organizational meetings with members should take place. The process is the same when filing for an Incorporation.

Step 4: Federal Employer Identification Number (EIN) 

An Employer Identification Number is like a social security number made exclusively for your company. It is mandatory for LLCs and corporations but optional for DBA. But if you don’t want your organization to go through some identity theft-related issues, then making an EIN is a wise thing to do. 

Step 5: Company’s Bank and Credit Accounts

It is recommended to have separate bank accounts for your business . The best way a company’s credit profile can be boosted is by owning a credit card and doing all the company-related transactions from that only. This qualifies the company to file for loans and lines of credit in the future. The process of opening a bank account is pretty easy and is an integral step to file your New York Corporation.

Step 6: Setting up a suitable Accounting System

Now is the time when you need to set up your company’s accounts and the taxation process records. The essential documents that are to be kept for at least three years are:

  • a list of all company’s addresses and the owners, 
  • a photocopy of all the essential transactions and documents, 
  • statements or any changes that have been made to the company. 

Step 7: Licenses and Permits

After registering the business name, now is the time to obtain a license for your company; This permits you to do business in your native city and county. 

Step 8: Start the hiring process.

At this step, you can start the company’s hiring process, and you can hire full-time or part-time resources of the company. 

Step 9: Marketing

When all the above steps have appropriately been done, now is the time to let the world know what your company does and how it can benefit from them. 

Creating an appropriate marketing strategy for the services and products that suitably target your target audience and keeps the business going. 

These are some essential steps that need to be followed to set up a business in New York and make it a full-fledged corporation. Need some expert assistance from some professionals to start your own business? Well, you’ve just reached the right cue. Windsor corporate services offer expert advice and guidance procedures to help you at every step to filing your New York Corporation and making it global. 

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