1. Decide on a Business Structure

The business structure you choose has implications for your taxes, legal liability, and operational processes. Here are the options:

Sole Proprietorship: This is suitable for single-person operations, where the business and the owner are the same legal entity.

Partnership: If you're running your business with others, you may want to consider a partnership. There are different types including general and limited partnerships.

Limited Liability Company (LLC): An LLC mixes characteristics of partnerships and corporations, offering legal protection by separating personal and business assets.

Corporation: This is a more complex structure, often used by larger businesses, providing the highest level of protection, albeit with additional costs and regulations.

2. Register Your Business Name

Choose a distinctive name for your business. If it's different from your own name, you'll need to register it as a DBA (Doing Business As) with the County Clerk Office 

3. Get an Employer Identification Number (EIN)

Most businesses in Rochester, NY, will require an EIN from the IRS for tax filings. This is like your business's Social Security number: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online 

4. Register with State and Local Agencies

Registration requirements vary depending on your business type and location. You might need to register with the New York Department of State, New York Department of Taxation and Finance, and Monroe County's Clerk Office.

5. Obtain Necessary Permits and Licenses

Each industry and location has different licensing requirements. For instance, you might need a general business license or specific occupational licenses. In Rochester, check with the City's Department of Neighborhood and Business Development to determine the necessary permits and licenses.

6. Register for State and Local Taxes

In Rochester, businesses may have to pay state and local taxes. Register with the New York Department of Taxation and Finance for your state tax obligations and the City of Rochester for local tax obligations.

7. Open a Business Bank Account

Maintain a clear distinction between personal and business finances by opening a separate business bank account. This not only makes tax preparation easier but can also safeguard your personal assets.

8. Get Business Insurance

Your business may require certain insurance coverage depending on its type and structure. Types of insurance could include general liability, professional liability, or workers' compensation. Consult with a local insurance agent in Rochester to help determine what's best for your business.

Legalizing your business may seem daunting, but it's a necessary process for legitimacy and potential growth. Each step takes you closer to a solid foundation for your business while minimizing potential legal issues. Always remember to seek advice from legal and tax professionals to ensure everything is done correctly.