Having the right business licenses helps ensure your business operates legally in New York and complies with state and local laws, regulations, and tax requirements. In New York, most licensing occurs at the local level, but you might need state-issued licenses, depending on your business. Whether you plan to run an in-home daycare, open a sidewalk café, or sell handmade jewelry online, knowing which licenses you need is an important step in starting your business.
Below, we’ll cover how you can determine what business licenses and permits you need, steps for applying, and fees you can expect to pay.
Key takeaways
Businesses operating in New York may need a combination of state and local professional licenses, zoning permits, certificates of occupancy, sales tax certificates, and special use permits.
The New York Business Express website and local government in the jurisdiction where your business operates can help you confirm your specific licensing and permitting needs.
Licensing costs and renewal timelines vary based on your industry, business structure, and location.
Do you need a business license in New York?
Most businesses need a license to operate in New York, but the state doesn’t issue a general statewide operating license. Instead, local jurisdictions handle most licensing requirements, which vary based on your business’s legal structure, industry, location, and whether you sell taxable products and services.
The state of New York issues licenses for certain professions, including real estate brokers and notaries public. If you sell taxable products and services, you’ll need to register as a sales tax vendor with the state, and obtain a New York Sales Tax Certificate of Authority to collect and file sales tax returns.
You’ll also need to meet your city’s or county’s local licensing and permitting requirements. Depending on where your business operates, additional industry-specific licenses, zoning permits, certificates of occupancy, or special use permits may be required.
What business licenses and permits are required in New York?
Licensing requirements vary by industry and location, but common types of New York business licenses include:
Professional licenses: The New York Department of State regulates 36 professions, including home inspectors, cosmetologists, and private investigators. You might also need local professional licenses, based on your city’s or county’s requirements.
Sales tax certificate: Businesses that sell taxable products and services generally need to register as a sales tax vendor with the state and obtain a New York Sales Tax Certificate of Authority to collect and remit state and local taxes to the New York State Department of Taxation and Finance.
Zoning permits: If you plan to run your business from a physical location, check your local zoning laws for information about where you can operate legally. You might need building permits, a certificate of occupancy, fire department permits, and more.
Special use permits: Some New York cities and towns require home-based businesses to maintain a license. Check local regulations to learn more about the types of businesses you can operate from your home and rules for operation.
Food safety licenses: The New York State Department of Health and some county health departments regulate most food-service businesses, such as restaurants and cafés, in the state. The Department of Agriculture and Markets regulates other types of food-based businesses, such as food manufacturers, processing plants, and wholesale bakeries.
Cannabis and hemp licenses: The Office of Cannabis Management regulates and licenses all adult-use, medical, and cannabinoid hemp businesses in New York.
Federal business licenses: Businesses operating in New York that are regulated by a federal agency, such as agricultural businesses and firearms dealers, will need a federal license.
What are the requirements for getting a business license in New York?
Follow these general steps to obtain a business license in New York:
Select a business structure: Decide if you’ll set up your business as a sole proprietor, limited liability company (LLC), partnership, or corporation, and file the appropriate paperwork. You can learn about the filing requirements for your business structure at the New York Department of State’s website. Some cities and counties also have local business registration requirements.
Register your business name: If you’re forming a general partnership or operating as a sole proprietor under a name other than your own, you’ll need to file a certificate of assumed name—also known as “doing business as” (DBA)—with the clerk of the county or counties where your business operates.
Get your employer identification number (EIN): Some businesses might need an EIN to operate, file taxes, and open a business bank account. You can apply for an EIN at the US Internal Revenue Service (IRS) website.
Check your local requirements: Many New York businesses need local licenses, registrations, and permits. Visit your local government’s website to see what’s required, and find information on applications, fees, and license renewals.
Apply for state and industry-specific licenses: Depending on your occupation, you might need a professional license from the state of New York. You can review the Department of State’s list of license types to see if any apply to your business. Businesses that plan to sell taxable goods or services also need to apply for a Sales Tax Certificate of Authority.
Submit zoning and building permits: If your business will occupy a physical location, you’ll need to know whether you can operate out of your planned site. Check local zoning laws to find out if you need building permits, a certificate of occupancy, a fire department permit, or other requirements.
Pay required fees: You generally need to submit the required fees with your application. Pricing varies by license, location, industry, and business type.
Receive your business license. After you’ve submitted your documents and fees, your application will be processed. If it’s approved, you’ll receive your license and can start operating.
The New York Business Express website can help you determine which state-level licenses, permits, and registrations might be needed. For local requirements, contact the county and city where your business operates for more information.
How much does a business license cost in New York?
Here are some common fees you can expect to pay for New York business licenses.
Assumed name certificate filing fees
The charge for filing a certificate of assumed name varies based on your business structure and location. LLCs and limited partnerships pay $25.00, while corporations pay $25.00 plus a fee for each county where the business operates. Corporations in the Bronx, Kings, New York, Queens, and Richmond pay an additional $100.00. All other counties pay an extra $25.00.
State professional license fees
Statewide professional licensing fees vary by occupation. Barbers, for instance, pay a $40.00 application fee plus a $15.00 exam fee. The cost for a home inspector to apply for a license is $250.00 plus a $50.00 exam fee. Licenses are valid for two years, and the renewal fee is $100.00.
Local professional license fees
Some cities and counties in New York require certain types of businesses to maintain a professional license. New York City, for example, licenses businesses in more than 45 industries, and pricing varies by occupation. Tow truck drivers who apply for a license at the beginning of a licensing period pay a $20.00 fee for a two-year license, while a booting company license that’s valid for two years costs $340.00.
In the city of Buffalo, the licensing fee for a sidewalk café that’s open year-round is $7.50 per square foot. The fee for a seasonal café that’s over 577 square feet is $1,000, and the cost of a seasonal café under 577 square feet is $1.50 per square foot.
New York Sales Tax Certificate of Authority
New York doesn’t charge a fee to businesses that need to register as a sales tax vendor and obtain a New York Sales Tax Certificate of Authority.
Food safety licenses and permits
The cost of a food safety license or permit can vary by location, business type, and business size. In New York City, for instance, most food-service establishment permits cost $280.00 plus $25.00 if you serve frozen desserts and have an annual renewal fee of $280.00.
However, in Onondaga County, the cost is $217 for a restaurant with a seating capacity of 0–25 people and $360 for a restaurant with a seating capacity of more than 150 people. Other types of businesses pay different fees. Mobile food vendors, for example, pay $192 per unit, and caterers pay $310 per establishment.
If you need a food processing establishment license, which is required for businesses that make or package food, the cost is $400.00 for businesses that have more than 10 full-time employees and/or are a franchisee/affiliation. For businesses with less than 10 full-time employees that aren’t a franchisee/affiliation, the fee is $175.00. And the fee is waived for first-time applicants operating out of an Incubator Kitchen recognized by the Department of Agriculture and Markets.
Zoning permits
If you plan to make changes to a physical structure, you’ll probably need zoning permits. Costs vary widely based on your location and the size and scope of the project, ranging from nominal fees for minor work to several thousand dollars for more complex projects.
Special use permit
Some cities and counties require home-based businesses to have a special use permit, and fees vary by location. In the town of Bedford, for instance, you’ll need to submit an application for administrative review and approval to obtain a special use permit. The cost is $750.00 with a renewal fee of $300.00 every five years.
How do I renew a New York business license?
Check with the government agency or regulatory body that issued your original business license to find out how to renew it. Renewal processes, timelines, and fees vary by license and location. Many licenses are valid for one to four years, and renewal fees cost about the same or less than the original application fees.
You can generally renew your license online, or by mail, but options vary by license type and jurisdiction. Renewals might occur on the anniversary of the day your original license was issued or specific dates, such as December 31 of odd years or October 31 of even years. Putting a note in your calendar and signing up for reminders when available can help you avoid missing renewal deadlines.
What New York–specific considerations do I need to know?
Here are some New York–specific considerations for getting a business license.
Sales and use tax laws can complicate tax collection and filing requirements
Almost all counties in New York charge local sales tax on top of the state’s 4.0% sales tax. Because New York has a destination-based sales tax system, businesses will need to calculate local tax rates based on where a sale takes place. For in-store purchases, the tax rate is determined by the location of your business. However, the tax rate for orders that are shipped to customers is set by the delivery address.
Some home-based food businesses qualify for an exemption
Certain home-based food businesses are eligible for a home processor exemption, which allows the business to prepare food in a home kitchen without obtaining an Article 20-C Food Processing Establishment license. Businesses that qualify are generally limited to making certain types of baked goods, jellies, and snack mixes that must be sold within the state of New York.
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FAQs about getting a business license in New York
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.