How to Get a Small Business License in New York

Starting a New York business is an exciting opportunity, but it also comes with a maze of legal requirements. One of the most critical early steps is ensuring you have all the proper licenses and permits. In this guide, our New York business formation lawyer walks you through everything you need to know to legally operate your business in the Empire State.

Licenses and Permits Required to Operate Your Small Business in New York

Before opening your doors, you must determine what licenses and permits are required based on your business type, location, and industry. Most businesses need some combination of general business licenses, local licenses, local permits, tax registrations, and industry-specific authorizations. Depending upon your plans, you may even need a federal business license to operate in New York State.

You’ll also need to choose the correct business entity that suits your needs — such as a sole proprietorship, limited liability company, corporation, or partnership — which will impact your legal and tax obligations. To formally register your business, you must file with the DOS and often register for taxes with the DTF.

Business Structure Considerations for Licensing and Permits

Your small business structure affects which licenses you need and how you obtain them. Each entity type has different registration and compliance requirements:

• DBAs have more straightforward registration but do not offer liability protection.
• LLCs offer liability protection with moderate registration complexity.
• Corporations have the most complex registration but provide the strongest liability protection.
• Partnerships, either general or limited partnership, have varying requirements based on whether they're general or limited.

Consider consulting with a small business attorney to determine which structure best suits your specific business needs and licensing requirements.

New York General Business Operating License

Unlike some states, New York does not have a single statewide "general business license" that every business must obtain. Instead, the New York business license requirements vary based on your locality, industry, and specific business activities. To determine what applies to you, use the New York Secretary of State's Business Express's Business Wizard. This helpful tool asks you a series of questions and generates a customized checklist of licenses, permits, and filings specific to your business type and location. Keep in mind that some cities or counties may impose additional requirements for obtaining a business license in New York, including some federal agencies. Check with your county clerk's office to ask about any necessary local licenses and permits and filing fees.

Licenses for Specific Professions and Trades in New York State

If you work in a regulated profession, you may need a state license, and written pre-approval from the profession’s regulatory body, before offering your services to the public. Professions such as accountants, architects, engineers, nurses, and therapists are regulated by the Office of the Professions (OP). You can find a complete list of federal licenses and New York’s licensed professions to determine if your occupation is subject to state oversight.

Obtaining a professional license usually requires passing an exam, completing specific education requirements, and maintaining continuing education. Additionally, some trades — such as electricians, plumbers, and contractors — may require special licenses and building permits from local government agencies and county clerks where the business operates. Always confirm with both state and local agencies and federal business licenses and permits to avoid operating illegally in New York State or facing fines.

Permission to Collect Sales Tax in New York State

If your small business sells tangible goods or certain services, you’ll likely need to collect sales tax through a separate process. To collect sales tax legally in New York State, follow these steps:

1. Determine if your goods/services are taxable.
2. Register your business with the DTF.
3. Register for a sales tax Certificate of Authority.
4. Display the certificate and state business licenses at your business location.
5. Begin collecting and remitting the taxes appropriately.

Approvals from Local Government for Business Location and Construction

In many cases, your business location will require approval from your local government. This includes ensuring compliance with zoning laws and obtaining the correct occupancy and construction-related permits. Some common local requirements include:

• Zoning approval: Your business must be located in a zone that permits your type of operations.
• Building permits: Required for any construction, renovation, or signage changes.
• Fire and health inspections: May be necessary before opening.
• Certificate of Occupancy (CO): Confirms your building is legally approved for your intended business use.

Each city or county may have its own rules, so always consult your local municipal office early in the planning process.

Registering a "Doing Business As" (DBA) Name in New York

If you plan to operate under a name different from your legal business name, you must register a "Doing Business As" (DBA) name. According to Section 130 of the General Business Law, businesses must file a Certificate of Assumed Name with the appropriate agency.

Corporations, limited liability companies, and limited partnerships file with the New York Department of State using the Certificate of Assumed Name form. Sole proprietorships and general partnerships usually file with the county clerk in the county where the business is located. Using a DBA does not change how you file taxes or the use of your original employer identification number.

Additional Permissions Based on Your Small Business Type

Beyond general and professional licenses, your business in New York may need additional permits depending on its activities. These could include:

• Food handling or liquor permits
• Environmental licenses and permits for emissions or waste disposal
• Childcare or education-related certifications
• Signage and advertising permits

Always confirm with state and local agencies, including the federal government, to ensure you're fully compliant.

Industry-Specific Small Business Licensing Requirements

Different industries face varying licensing requirements in New York. Here are some examples:

• Food and beverage: Health department permits, liquor licenses, food handler certifications.
• Healthcare: Professional licenses, facility licenses, DEA registrations.
• Construction: Contractor licenses, trade licenses, workers' compensation insurance.
• Childcare: Certifications, background checks, facility inspections.
• Transportation: Vehicle registrations, driver certifications, interstate operating authority.

Research the requirements of your specific industry using the Business Wizard tool, relevant state and local agencies, and New York State associations.

Timeline for Getting a Small Business License in NY

Planning your licensing process properly is crucial for a smooth business launch:

• Begin the process 3–6 months before your intended opening date.
• Register your business entity with the DOS first (processing can take several weeks if not submitted electronically or via fax using an expedited handling option).
• Apply for your tax ID numbers, including a federal tax employer identification number (EIN) and state tax ID, including sales tax.
• Submit professional license applications to appropriate state and federal license government agencies (processing can take weeks or months).
• Apply for your Certificate of Authority at least 20 days before opening.
• Obtain local permits and inspections (schedule these well in advance).
• Complete required newspaper legal advertisement publications for six weeks (if filing an LLC or PLLC), collect affidavits, and submit to the DOS along with required certificate.
• Apply for any industry-specific licenses or permits.

Factor in extra time for delays or revisions to applications.

Why You Should Consider Hiring a Business Formation Lawyer

Navigating New York's complex business license and permit requirements can be overwhelming, especially for first-time entrepreneurs. While many business owners handle the process themselves, there are compelling reasons to consider hiring a business formation lawyer:

• Guidance through complex regulations: A business attorney can identify all necessary licenses and permits specific to your industry and location.
• Time and stress savings: A lawyer handles forms, deadlines, and agency communications so you can focus on launching your business.  Attorneys may be able to facilitate faster turnaround times from regulatory agencies.
• Liability protection: An attorney ensures your structure and licensing provide the appropriate shield for your personal assets.
• Avoiding costly mistakes: Penalties for noncompliance can be expensive. A lawyer can help you stay on the right side of the law and make sure your business structure is compliant with state and federal tax requirements.
• Assistance with negotiations: Whether it's zoning, leases, or contracts, a lawyer can protect your interests during key discussions.
• Long-term compliance planning: Your attorney can help you build systems to stay compliant as your business grows and regulations change.

Take the First Step Toward Legal Compliance Today

Getting your small business licenses and permits in New York can feel overwhelming, but with the proper guidance, it's absolutely manageable. Whether you're ready to tackle the process yourself or want professional support, having a knowledgeable advisor makes a world of difference. Speak with our trusted NY business formation attorney to make sure your new business is fully compliant from day one. Contact Lawyer For Business today to schedule your consultation.