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Types of Business

A sole proprietorship is a business owned and operated by one individual. The owner assumes full liability for the business and is responsible for all decisions. To create a sole proprietorship, an individual must fill out and submit to the County Clerk's Office a Certificate of Conducting Business or Doing Business As (DBA) a Sole Proprietorship. There is a $25 fee for submitting the form and a $4 surcharge for additional copies.

A partnership is created when two or more people start a business together. Partnerships usually have agreements or documents drawn up to determine the level of responsibility for each partner. If there is no specific agreement amongst the partners, the New York State Partnership Law would determine responsibility and liability. To start a partnership, an individual must complete and submit to the County Clerk's Office a Certificate of Conducting Business As (DBA) a Partnership. There is a $25 fee for submitting the form and a $4 surcharge for additional copies.

A limited liability company is a business in which the owner or owners of the company do not assume the same liability as a sole proprietorship or a partnership. The owner or owners have less personal liability for the business. To form an LLC, an individual must file Articles of Organization with New York State. All fees and forms must be paid and submitted to the Department of State.

A corporation is a business in which the owner(s) and the business are separate and distinct entities. A corporation can buy and sell properties as its own separate entity. The obligations of the owner and the corporation are separate. To form a corporation, an individual must file Articles of Organization with New York State. All fees and forms must be paid and submitted to the Department of State.

 


Tax Information

The New York State Department of Taxation and Finance provides basic information about tax law in New York State. To find out more information about taxes, specifically sales and use taxes, or to get tax forms, contact the New York State Department of Taxation and Finance at (800) 462-8100 or (800) 972-1233.

 


Federal Identification Number

In order to own and operate a business, a business must file for a tax identification number with the Internal Revenue Service (IRS). For more information, contact the IRS at (800) 829-1040 or visit www.irs.gov.

To apply for a tax identification number online, visit www.nys-opal.com.

The IRS also requires an employer to have all employees submit a Form I-9 and a Form W-4. The Form I-9 verifies that a person is eligible for employment. This form can be obtained by contacting U.S Citizenship and Immigration Services at (800) 357-2099 or at www.uscis.gov. A Form W-4 is used to withhold taxes and can be obtained by contacting the IRS at (800) 829-3676.

 


Insurance

There are three types of insurance that an employer must provide according to New York State law. They are unemployment insurance, workers' compensation insurance, and disability benefits insurance.

For more information about unemployment insurance, contact the New York State Department of Labor at (888) 899-8810. To apply online for unemployment insurance, visit www.nys-opal.com.

To access more information or to apply for workers' compensation or disability benefits insurance, contact the New York State Insurance Fund at (866) 697-4332 or visit www.nysif.com.

You can also access workers' compensation Insurance or disability benefits insurance through your local private insurance carrier. For more information about local insurance carriers, contact the Rensselaer County Regional Chamber of Commerce at (518) 274-7020.