How to Get Business Licenses in New York | A Comprehensive Guide


Steve Bennett
Steve Bennett
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New York Business License

Starting a new business is an exciting venture, but it’s essential to understand the various licenses required to operate legally within New York. Forming an LLC in New York requires licenses, as different industries and locations have specific regulations. This article will provide a comprehensive guide to New York Business Licenses, helping you navigate the process and ensure your new venture complies with all necessary requirements. By understanding the permitting landscape in New York, you can ensure that your business is fully prepared to succeed while avoiding potential legal pitfalls.

Webinarcare Editorial Team will help you easily obtain a business license in New York. You must be guided by all the factors gathered in this article.

What is a Business License in New York?

A business license is a legal authorization, permit, or document that allows a business to operate within a specific jurisdiction, such as a city, county, or state. New York business licenses are issued by New York Secretary of State and ensure businesses comply with applicable laws, regulations, and standards in their respective industries.

A business license protects public health, safety, and welfare by ensuring businesses operate responsibly and lawfully. Acquiring a business license often involves registering the business, paying applicable fees, and meeting specific requirements or qualifications for the type of business.

Business licenses can vary greatly depending on the location and nature of the business. Some common types of business licenses include:

1. General Business License: This is a basic license required for most businesses to operate within a specific jurisdiction, such as a city or county.

2. Professional and Occupational Licenses: These licenses are specific to certain industries or professions, such as healthcare, construction, real estate, or cosmetology, and are typically issued by state licensing boards or agencies.

You must have a professional and occupational license to form New York General Partnership and offer your service. 

Here are some examples of Professional and Occupational Licenses:

  • Medical License: Physicians, surgeons, and other healthcare professionals must obtain a medical license to practice medicine in a specific state. The New York medical board issues this license after verifying the applicant’s education, training, and examination results.
  • Realtor License: To become a realtor in New York, you must obtain a real estate license to buy, sell, or lease properties on behalf of clients. New York has its own real estate commission or board responsible for issuing licenses and regulating the industry.
  • Contractor License: General contractors, electricians, plumbers, and other construction professionals must often have a contractor license to work in New York. 
  • Cosmetology License: Professionals in the beauty industry, such as hairstylists, estheticians, and nail technicians, must obtain a cosmetology license to provide services. New York Boards of Cosmetology oversee licensing and regulations for this industry.
  • Certified Public Accountant (CPA) License: Accountants who wish to become a CPA in New York must designate and provide specific services, such as auditing financial statements and obtaining a CPA license from New York’s Board of Accountancy.
  • Architect License: Architects must obtain a license to practice architecture in New York. This typically involves meeting education and experience requirements and passing the Architect Registration Examination (ARE).
  • Attorney License: New York Business Attorneys must obtain a license to practice law in a particular jurisdiction, typically by passing the state’s bar examination and meeting other requirements set by the New York bar association.

3. Health and Safety Permits: New York businesses involved in food service, hospitality, or other industries directly impacting public health and safety may require specific permits from local health departments or regulatory agencies.

4. Environmental Permits: New York businesses that involve activities that may impact the environment, such as waste disposal, air or water emissions, or hazardous materials handling, may require permits from local, state, or federal environmental agencies.

5. Sales Tax License: New York businesses that sell goods or services may be required to collect sales tax from customers and remit it to the appropriate tax authority. A sales tax license is typically required to collect and remit sales tax legally.

New York business owners must research the specific licensing requirements for their business in their jurisdiction and obtain all necessary licenses and permits to operate legally and avoid potential fines, penalties, or legal troubles.

Requirements For Getting Business Licenses in New York

If you start an LLC or any other type of business, you must wait until your New York business registration is complete. Once you have completed the necessary steps to register your business in New York, you must be prepared with the required documents to apply for business licenses.

  • Name of your company
  • Phone number and company address
  • Employee Identification Number (EIN)
  • Your company’s legal structure (Corporation, Partnership, or LLC)
  • Your business strategy, which includes revenues and costs

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How to Get a Business License in New York

To get a business license, you must follow the guidelines below, including determining if your New York business requires a license or permit, identifying the appropriate licensing agencies, researching license and permit requirements, completing and submitting license applications, and maintaining license and permit requirements.

Step 1: Determine The Required License or Permit

The first step in obtaining a business license is determining if your business needs one. Some businesses may not require a license or permit, while others may need multiple licenses depending on their industry and location. Some businesses typically require some form of licensing or permit:

  • Professional services, such as medical, legal, and accounting
  • Food establishments, including restaurants, bars, and catering businesses
  • Retail businesses, including stores, shops, and online retailers
  • Construction and contracting companies
  • Manufacturing and industrial businesses

State Licenses

The licenses that you must get first are the licenses within the state. New York state licenses require individuals or businesses to engage in certain activities or professions legally. The state government issues these licenses and serves as proof that the license holder has met certain qualifications and standards set by the state. The types of licenses vary depending on the profession or activity, including but not limited to healthcare professionals, contractors, real estate agents, and drivers.

State licenses assure the public that the license holder has undergone the necessary training and education to perform their duties safely and competently.

Federal Licenses

Federal licenses in New York are granted by federal agencies and are required for certain activities and industries that fall under federal jurisdiction. These licenses ensure compliance with federal laws and regulations and are necessary for individuals or businesses engaged in the following services.

  • Agriculture: License issued by The U.S. Department of Agriculture
  • Aviation: License issued by The Federal Aviation Administration
  • Alcohol & Tobacco: License issued by The Alcohol and Tobacco Tax and Trade Bureau
  • Ammunition, Explosive, & Firearms: License issued by The Bureau of Alcohol, Tobacco, Firearms, and Explosives.
  • Commercial Fisheries: License issued by The National Oceanic and Atmospheric Administration Fisheries Service
  • Mining & Drilling: License issued by The Bureau of Safety and Environmental Enforcement
  • Nuclear Energy: License issued by The U.S. Nuclear Regulatory Commission
  • Radio & Television (Broadcast): License issued by The Federal Communications Commission
  • Transportation by Sea: License issued by The Federal Maritime Commission
  • Wildlife & Fisheries: License issued by The U.S. Fish and Wildlife Service

Obtaining a federal license in New York involves meeting specific criteria and adhering to federal laws and regulations, which can vary depending on the activity or industry.

City-Based License

City-based licenses in New York are granted by local municipalities and are required for certain activities or businesses operating within the city limits. These licenses ensure businesses comply with local regulations and ordinances and typically cover business operations, health and safety, zoning, and permits.

City-based licenses vary depending on the location and the nature of the business, but examples may include restaurant licenses, liquor licenses, taxi licenses, and street vendor licenses. Obtaining a city-based license in New York involves submitting an application, paying the necessary fees, and meeting specific requirements set by the local government.

Home-Based License

Home-based licenses in New York are required for individuals or businesses that operate from their residential property. These licenses regulate and permit activities conducted within a residential setting, such as home-based businesses or rental properties. Home-based licenses ensure these activities comply with local regulations, building codes, zoning requirements, and health and safety standards.

The specific requirements for obtaining a home-based license in New York can vary depending on the type of activity and the local municipality but typically involve submitting an application, paying any necessary fees, and meeting specific criteria set by the local government.

Professional License

Professional licenses in New York are mandatory for individuals pursuing specific careers or professions that require specialized knowledge, skills, and expertise. The state government grants these licenses and serves to regulate and ensure the competency and ethical practice of professionals in fields such as law, medicine, engineering, teaching, and accounting.

To obtain a professional license in New York, individuals must meet education, experience, and examination requirements specific to their profession. These licenses assure the public that they receive services from qualified professionals and protect consumers from potential harm or malpractice.

Step 2: Identify the New York Licensing Agencies

Once you’ve determined that your business requires a license or permit, you must identify the appropriate New York agencies responsible for issuing these documents. In New York, numerous agencies oversee licensing and permitting, including:

  • New York Secretary of State: This office is responsible for issuing licenses for many professional services, including legal, medical, and accounting.
  • New York Department of Health: Food establishments, healthcare providers, and other businesses related to health and safety may require licenses from this department.
  • New York State Department of Taxation and Finance: If your business sells goods, you may need a sales tax license or permit from this department.
  • New York Department of Labor: Businesses that involve construction or contracting may need licenses from this department.
  • Local City or County Governments: Depending on your business’s location, you may also need to obtain licenses or permits from your local government.

Step 3: Research License and Permit Requirements

After identifying the appropriate agencies, research the specific requirements for each license or permit your business needs. This may involve reviewing the New York agency’s website, contacting their office directly, or consulting a legal or business professional. Some common requirements for obtaining a business license or permit include:

  • Completing an application form
  • Providing proof of insurance or bonding
  • Passing background checks or inspections
  • Paying application fees

Some licenses or permits may have ongoing requirements, such as annual renewals, inspections, or reporting.

Step 4: Complete and Submit License Applications

Once you’ve gathered all the necessary information and documents, complete the application forms for each required license or permit. Be sure to carefully follow the instructions provided by each New York agency, as incomplete or incorrect applications can lead to delays or denials.

In addition to the application forms, you may also need to submit supporting documentation, such as:

Proof of Business Registration

You can find it on the New York Secretary of State’s website. There should be a search feature specifically for businesses. This will often be labeled “New York Department of State Division of Corporations“. In the search feature, enter the name of the business you are looking for, and once it appears, you will now have proof of your business registration.

Employer Identification Number (EIN)

Aside from opening a bank account, you must have an Employer Identification Number in New York to file and submit for a business license. An EIN, also known as a Federal Tax Identification Number, is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees. 

The application of an EIN in New York can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Proof of Insurance, Bonding, or Worker’s Compensation Coverage

To have a business license, you need proof of insurance, bonding, or worker’s compensation. You need to obtain a certificate or policy document as additional documents for your proof of insurance. Also, there is a database of businesses with worker’s compensation coverage or require businesses to register their insurance or bonding information. Visit your New York Department of Labor, Department of Insurance, or another relevant agency website for information about the business’s coverage.

Professional Certifications or Licenses

As I have mentioned, if you will form a general partnership and offer your service, you must have professional certifications or licenses. 

Submit your completed applications and the New York business license fee, which ranges from $50 – $300. The processing times for license and permit applications can vary, so plan accordingly and allow ample time for approval.

Step 5: Maintain License and Permit Compliance

Once you’ve obtained the necessary licenses and permits for your New York business, it’s essential to maintain compliance with all requirements. This may include:

  • Keep your New York licenses and permits current by renewing them on time, typically annually.
  • Reporting any changes to your business, such as a changing New York LLC address. You may amend your New York Articles of Organization if you change anything in your New York business.
  • Maintaining proper insurance, bonding, or worker’s compensation coverage.
  • Complying with any inspection, reporting, or record-keeping requirements.

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Additional Considerations

In addition to the steps outlined above, there are a few additional considerations to keep in mind when navigating the New York business licensing process:

  • Licenses and permits are often industry-specific, so research your business type’s requirements.
  • Some businesses may need licenses or permits from multiple agencies at the state and local levels. Be sure to research and comply with all necessary requirements to avoid complications.
  • If your business operates in multiple locations or across state lines, you may need to obtain licenses or permits for each jurisdiction in which you operate. You can form New York Foreign LLC. 
  • Stay informed about licensing and permitting requirements changes, as regulations can change over time.

FAQs

What is a business license?
A business license is a permit issued by the government that allows individuals or companies to conduct business within a specific jurisdiction.
Do I need a business license to operate in New York?
It depends on the type of business you want to operate. Most businesses in New York City are required to have a business license.
How do I apply for a business license in New York?
The application process varies depending on the type of business. You can find more information on the City of New York’s website.
How much does a business license cost in New York?
The cost of a business license varies depending on the type of business and the city you are operating in.
How long does it take to get a business license in New York?
The time it takes to get a business license in New York depends on the type of business and the city you are operating in.
What kind of information do I need to provide when applying for a business license in New York?
You’ll need to provide information about yourself and your business, such as your name, address, social security number, and business registration information.
What types of businesses require a license in New York?
Most businesses operating in New York City require a business license, including restaurants, food vendors, and taxi cab companies.
How often do I need to renew my business license in New York?
Business licenses in New York City are typically renewed every one to two years.
What are the consequences of operating a business without a license in New York?
Operating a business without a license in New York can result in hefty fines, the suspension of your business activities, and even criminal charges.
Can someone else apply for my business license for me in New York?
No. You must apply for your business license yourself. However, you may be able to work with an attorney or other professional to help you through the process.
Do home-based businesses in New York need a license?
It depends on the type of business you’re operating. You should check with the City of New York to see if your home-based business requires a license.
Are non-profit organizations required to have a business license in New York?
Non-profits in New York must register with the New York State Attorney General’s office, but they do not require a business license to operate.
What is the penalty for operating a business without a license in New York City?
The penalties vary depending on the type of business and the duration of the violation. You may face fines, criminal charges, and the revocation of your business activities.
Can you get a business license in New York without a storefront?
Yes. You can get a business license to operate out of a residential space or a virtual office.
What is a health department permit, and do I need one to operate in New York?
A health department permit is required for any business that operates with food, including restaurants and food vendors. You must obtain a health department permit in addition to your business license.
How do I know if my business is in compliance with New York City regulations?
The City of New York provides resources to help businesses comply with regulations. You can consult with an attorney or other professional to ensure your business is in compliance.
Do I need to provide a letter of recommendation to obtain a business license in New York?
No, a letter of recommendation is not typically required to obtain a business license in New York.
How do I know if I need a state license in addition to my city license in New York?
Some types of businesses require a state license in addition to a city license. You should check with the New York State Department of Financial Services for more information.
What is a seller’s permit, and do I need one to operate in New York?
A seller’s permit is required for businesses that sell or lease tangible personal property in New York. You will need a seller’s permit in addition to your business license.
Do I need a business license to sell items online in New York?
If you are selling items online in New York, you will likely need a business license. However, the application process may be different depending on the type of business you’re operating.
How do I cancel my business license in New York?
You can submit a request to cancel your business license to the City of New York. You will need to provide written documentation to support your cancellation request.
Can I operate a business in New York under an assumed name?
Yes. You will need to register your assumed name with the appropriate authorities and obtain a business license under that name.
Do I need a specific type of business license to operate a restaurant in New York City?
Yes. You will need to obtain a food service permit in addition to your business license if you plan to operate a restaurant in New York City.
What is the difference between a business license and a tax id number in New York?
A business license allows you to operate a business legally in New York. A tax ID number is used to identify your business for tax purposes.
Do I need to pay business taxes in addition to obtaining a business license in New York?
Yes. Any person or company operating a business or doing trade in New York City is required to pay business taxes.
Do I need a specific type of business license to operate a daycare in New York City?
Yes. Daycares in New York City are required to obtain a permit from the New York City Department of Health and Mental Hygiene in addition to a business license.
What is a certificate of authority in New York City, and how do I obtain one?
A certificate of authority allows you to conduct business within the state of New York. You can obtain a certificate of authority by registering your business with the New York State Department of State.
How can I check the status of my business license application in New York?
You can check the status of your business license application by contacting the City of New York’s Licensing Center.
Do I need a business license to operate as an independent contractor in New York?
Yes. Independent contractors in New York must obtain a business license to operate legally. The application process may be different depending on the type of contracting work you are doing.
How do I know if my business requires a license?
You can check with the City of New York, Department of Consumer Affairs to see if your business requires a license.
Can I apply for a business license online?
Yes, you can apply for a business license online at the City of New York, Department of Consumer Affairs website.
How much does it cost to get a business license in New York?
The cost of a business license varies depending on the type of business.
What is the process for obtaining a business license in New York?
The process for obtaining a business license in New York involves submitting an application, providing documentation, paying a fee, and undergoing any necessary inspections.
Can I get a temporary business license in New York?
Yes, some types of businesses may be eligible for a temporary business license in New York.
Do I need a federal business license to operate in New York?
No, there is no federal business license requirement for operating a business in New York.
Do I need a state business license to operate in New York?
No, there is no state business license requirement for operating a business in New York.
What type of documentation do I need to obtain a business license in New York?
The type of documentation required varies depending on the type of business, but may include proof of identity, business ownership, and insurance.
Are there any exemptions to business licensing requirements in New York?
Yes, there may be exemptions for certain types of businesses, such as non-profit organizations.
Can my business be shut down for operating without a license in New York?
Yes, your business may be shut down or fined for operating without a license in New York.
Do I need a business license if I work from home in New York?
Yes, you may need a business license to operate a business from your home in New York.
Can I get a business license if I have a criminal record in New York?
It depends on the type of criminal offense and the specific requirements for that business license.
Can I transfer my business license to a new owner in New York?
Yes, you may be able to transfer your business license to a new owner in New York.
What happens if I need to close my business in New York?
You may need to cancel your business license and dispose of any required business documentation if you need to close your business in New York.
Do I need a special license to sell alcohol or tobacco in New York?
Yes, businesses that sell alcohol or tobacco will need to obtain a specific license in addition to their general business license in New York.
Can I run multiple businesses under one license in New York?
It depends on the type of businesses and their respective licensing requirements in New York.
Is a certificate of occupancy required to obtain a business license in New York?
Yes, businesses may need to obtain a certificate of occupancy to demonstrate their space complies with building codes before obtaining a business license in New York.
Do I need a separate license for each location of my business in New York?
It depends on the type of business and its requirements, but most locations will require a separate business license in New York.
Can I operate a food truck without a business license in New York?
No, food trucks are required to obtain a specific business license in addition to their general license in New York.
What agencies are involved in obtaining a business license in New York?
The City of New York, Department of Consumer Affairs and the NYS Department of State are in charge of issuing a business license in New York.
What happens if I operate a business without just cause in posting consumer affairs in New York?
You may face fines or penalties for operating without just cause in posting consumer affairs in New York.
Can I deduct business licensing fees on my taxes in New York?
Yes, you may be able to deduct business licensing fees on your taxes in New York.
Can a business license be transferred from one state to another?
Generally, business licenses cannot be transferred from one state to another; each state has its own licensing requirements.
Can I be denied a business license in New York?
Yes, there may be reasons that your business license is denied, such as improper documentation or incomplete application.
Can I operate a business while my license application is being processed in New York?
No, you must wait until your business license application is approved to start operating your business in New York.
What should I do if I need help applying for a business license in New York?
Contact the City of New York, Department of Consumer Affairs or a professional licensing service in New York to assist you in filling or applying for a Business Licensing.

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Conclusion

Obtaining the necessary licenses and permits is crucial in starting a new business in New York. Following the steps outlined in this guide and consulting with the appropriate agencies or professionals, you can ensure that your business complies with all state and local requirements. This will protect your business from legal issues and help establish your reputation as a responsible and trustworthy business operator.

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