Formally establishing a corporation, limited liability company (LLCs), limited partnership and other business entity is the first step to doing business in New York State. If you are seeking to do business in New York, you must file with the NYS Department of State (Form a Corporation or Business | Department of State (ny.gov)).

Additional requirements for consideration -

Insurance - Most government contracts require businesses to have liability insurance. Checking to see if you have appropriate insurance coverage is important.

Licensing - If you are in a business requiring a professional license, do you have one and is it up-to-date?

Bonding, such as construction, this should be in place before you start accepting government contracts.

A business plan is a road map to ensure you have appropriately identified the resources necessary to expand, understand the demands of pursuing new customers – including the research and marketing necessary to find and acquire those customers, and are ready to assume the additional responsibilities associated with expanding your business.

Need help building your business plan? Find your local SBDC or SCORE Office

Working with government agencies is time and computer-work intensive and it includes registering in required government databases, submitting bid proposals, and filing invoices and progress reports. Being prepared will make submitting information and receiving payment a much smoother process.

Every contract is different and will have specific guidelines and specifications that contractors must meet.

Depending on the industry, some businesses spend around $80,000 to get their initial contract. Also, It can take longer to receive payment for services provided to the government. Usually, payment is received 30 to 45 days after an invoice is submitted, but it can take longer. Since government entities do not prepay for materials and other goods, businesses need to have a good cash flow and be able to pay for materials upfront.

If you are trying to do business with the federal government, nearly all contracts require a contracting entity have at least two years of experience performing the work required in the contract. However, this can be based solely on the owner’s experience prior to forming the business, based on the experience of on-staff employees, or based on work the business completed in the past.