The state of New York is home to an estimated 2.3 million small businesses. If you are looking to start one, you’ll need to make sure that you follow the state, city and county rules. This may mean getting a business license. In this guide, we’ll teach you everything you need to know about how to get a New York business license.
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Does New York Require a Business License?
Not every type of business requires a business license. Most companies selling goods and others selling some services will require a Certificate of Authority, which is a sales tax certificate used to collect and pay applicable sales taxes.
Some businesses providing professional services must obtain a professional license. New York’s Office of the Professions offers a list of licensed professionals (such as doctors, lawyers and CPAs). Licensed professions (such as barbers and home inspectors) are on the NY.gov site.
Vendors who don’t have a retail location may be required to obtain a General Vendor license. Businesses that sell alcohol are required to get a liquor license.
Visit the New York Business Express’ Business Wizard site and fill out the application to determine which licenses and permits you need for your business. If you are opening a business in New York City, use the NYC Business site to determine your permitting and licensing needs.
When Do You Need a Business License in New York?
It’s important to obtain any necessary licenses before you start conducting business. Since each business is different, you’ll want to review any license checklists when applying. Failure to obtain licenses before doing business can result in penalties and fines.
Types of Business Licenses
When starting a business, knowing what type of business license(s) you need to run your company is important. There isn’t a general business license applicable to all businesses; you need to know what business license to get.
Here are some examples of business licenses that you will need:
- Sales tax certificate. Allows businesses selling goods to collect and pay state sales taxes
- Licensed professions. For professionals such as cosmetologists, barbers, security guards, real estate brokers and home inspectors
- Licensed professionals. For medical practitioners, lawyers, CPAs and more
- General Vendor license. For vendors that don’t have a retail space but sell goods or services
- Liquor license. For establishments selling alcoholic beverages to the public (the State Liquor Authority issues this)
- Food permit. The Department of Health requires places handling and selling food to meet the requirements of a food permit
Steps to Getting Your New York Business License
You’ll need to work with each agency or state department to get the right business license for your company. Here are some steps to help you get the proper license:
- Apply through the New York Business Express Business Wizard site to determine which licenses and permits you need
- Go to the issuing agency to apply for the right license
- Complete the application for a sales tax certificate on the New York Business Express portal
- Complete all applications needed for professional service licenses
- Pay appropriate fees to obtain licenses
How Much Does a Business License Cost in New York?
There is no set fee for a business license in New York since each business will need its own type of license if it needs one at all. There is no fee required for a sales tax certificate. You can expect to pay anywhere from $50 to $150 to obtain a professional business license.
Bottom Line
Because there is not one standard business license required in New York, business owners will need to dig a little deeper to find out if their business requires a business license. Know that most companies selling goods will need a sales tax certificate, and if you are a professional, you may need a license to operate.
Frequently Asked Questions (FAQs)
Does New York require a business license?
Depending on your business type, you may be required to obtain a sales tax certificate or a professional business license. New York requires all businesses operating under a business name to register as a legal entity to operate a business.
Limited liability companies (LLCs) and corporations must register with the state. Sole proprietors and partnerships do not need to register their business entities but many need to file a DBA (doing business as) with their county if they use a name other than their own.
Is LLC a business license?
A limited liability company (LLC) is a business entity, not a license. It provides the legal structure that allows a company to operate in the state. Depending on the type of business, a company may also need to obtain a business license such as a sales tax certificate or a professional license. Learn more about setting up an LLC in New York.
