There are various procedures you must follow in order to legally and professionally close your firm if you are a sole proprietor in New York. To close a sole proprietorship in New York, follow these simple steps:
Step 1: Inform Your Clients and Vendors You must inform your clients and suppliers that you will be ceasing operations before you begin the process of closing your firm. You can accomplish this via distributing a letter or email, posting a notice on your website or social media pages, or all three. Everyone will be informed of the closure and will be able to make any required arrangements thanks to this.
Step 2: Submit the Required Documentation The next step is to submit the necessary papers to the Department of State of New York State. To properly discontinue your business and cancel any assumed name or DBA registration you may have had, you must file a Certificate of Discontinuance. The filing fee for this form is $60, and you can submit it online or by mail.
You must also cancel any licenses and permits you may have had for your company. This includes anything needed for your particular industry, such as a business license, a sales tax permit, or any other licenses or permissions. By getting in touch with the relevant municipal or state organization, you can cancel these.
Step 4: Make any unpaid debts or taxes. Make sure that all outstanding obligations and taxes have been paid before you can formally end your firm. Included in this are any unpaid debts, taxes, or invoices owed to the state or federal government. You can close your firm once all debts and taxes have been settled. Benefits of a Sole Proprietorship
The simplest type of company entity in New York is a sole proprietorship. There are no formal requirements or legal responsibilities that must be fulfilled, and it is simple to set up and operate. Additionally, sole entrepreneurs have total authority over their company and are free to take any actions without seeking the advice of others.
The acronym DBA stands for “doing business as.” The price to file a DBA in New York is determined by the county you choose. It costs between $25 and $100 and is good for five years. Your DBA registration must be renewed every five years. Do I Require a DBA in New York?
You must file a DBA if you conduct business in New York under a name other than your own. A fictional name or assumed name are other names for this. For instance, if your name is John Smith and your company is called “John’s Lawn Care,” you would have to submit a DBA. Do I Have to File a DBA in New York? Yes, you must file a DBA in New York if you conduct business under a name other than your own. Failure to comply with this legal requirement may result in fines and other legal repercussions. Additionally, a DBA can assist you in developing a professional identity and facilitate customer discovery.
Yes, you typically need a business license to conduct online business in New York. The particular criteria, however, differ based on the kind of business you run and the goods or services you offer. To find out any exact licenses and permissions you might require, it’s best to contact the New York State Department of State Division of Corporations, State Records, and Uniform Commercial Code.