Pros and cons of starting a business in NYC

Relocating and starting fresh in the new city is never easy. So starting a business in NYC does come easy as well. Still, before you hire your movers and start looking for plastic moving bins NYC, you should learn what are the advantages and downsides of being a business owner in such a big city.

Location, location, location

While you have no problem when you wish to rent moving bins NYC, the story is quite different for renting housing or office space. Depending on the type of your work, the location can determine the whole course of your business. It can make it or break it.

For example, if it important that your shop/company be in the area with a good flow of pedestrians, you will have to focus on more trendy neighborhoods. Rentals in those areas are very expensive. Not only that they come with a high tag price, but also with a small vacancy. Hunting for a convenient yet affordable shop/office space in New York is almost an impossible mission. In fact, that is one of the major disadvantages when starting a business in NYC.

Starting a business in NYC won’t go unnoticed

Big Apple is one of the densest populated cities in the USA. While it can be annoying for everyday life, it is very good for business. Here so many diverse companies are flourishing due to high demand for… well everything.

Since NYC is the cultural melting pot, people all around the world are nesting here. More diversity means more demand for all kinds of goods.
Meaning you probably won’t have to prequalify and you can make your original idea come true. Sure, there might be a need for a few adjustments for your business plan.

But the bottom line is that starting a business in NYC can be a good idea because of so many different people with different interests living under one roof. That is precisely the most significant advantage to try your luck and get your business up and running under New York’s sky of endless opportunities.

New York startup environment is booming

Due to a diverse population, a massive collection of major corporations, a tight-knit business community, and an immense amount of startup capital it seems like this city is one of the best startup communities in the country.

That is a huge advantage for starting a business in NYC, and one of the major reasons why young professionals are flocking here. It’s an ideal location for anyone looking to start a company in financial services, media, or communication. Also, there is a lot of startups that have started from someone’s garage or an apartment.  If you don’t have a lot of starting capital, you can create additional storage space in your home and start building your business dream from your living room for the time been.

New York is known for its fast-paced business environment

Every segment of living in Big Apple has a time frame. The same goes for the business market. If you don’t manage to keep up the pace, it is likely you’ll drown in it. New Yorkers are used to getting everything now or soon.

If you can’t produce a quality product or service fast, you won’t make it in this city. The fast pace of the business environment isn’t suitable for everyone. In fact, it is one of the big disadvantages of starting a company here. If you can’t meet the expected time frame, some other firm will appear and sweep the client right under your nose.

Starting a business in NYC is like swimming in shark-infested waters. Competition is vast and brutal. If you don’t swim fast enough or you can manage a fast pace, you will end up at the bottom of the business barrel.

Deciding on the type of structure you will use for starting a business in NYC

If you’re a newcomer with a dream of starting a business in NYC, the first thing after you handle post-move paperwork will be to determine what kind of structure you will use for your business.
There are several options, and they all come with their own set of advantages and disadvantages. You should consider which is best for your company’s needs before proceeding any further with your plan.

Sole Proprietorship

This type of structure implies that ownership of all of the assets of the company holds one individual. It an option that comes with the least complications for any new businessman. However, as a sole proprietor, you must register your company with the county clerk’s office.

Advantages:

• Quite easy to set up.
• It is a start-up with the least expenses
• Decision-making process is simple and quick 

Disadvantages

• No protection from creditors, meaning all personal assets are subject to the liens of creditors.
• Only help you can get if you hire employees who will work for paychecks

Starting a business in NYC with partners

A partnership firm is the association of two or more people. This type of structure implies sharing of the profits, but also losses of the business by the partners. Another consideration when starting a company with partners is the NYC business taxes. While the partnership must fill out a tax return, it is merely informational and each partner is taxed individually.

Advantages       

Corporation

Generally, as an artificial legal person, a corporation is more complicated and more expensive to establish. There are more legal requirements and tax obligations.

Advantages:      

• Like a partnership, more potential to raise capital than a sole proprietorship
• Limited liability of owners (their personal property protected from claims against the corporation)

Disadvantages:

• Strict legal requirements
• Expense of start-up
• a corporation is taxed on its profits, shareholders must pay taxes on dividends. In effect, the profits are taxed twice.

The structure you’ll choose for starting a business in NYC will mean what of advantages/disadvantages you’ll face. Keep in mind that the pros and cons regarding location, diversity, startup environment and fast business pace are general ones. You will face them either way, no matter what type of structure your business will be.