The Complete Guide to New York Business Licenses
"Do I need a business license in New York?" is one of the most common questions new owners ask. The answer depends on where you operate and what you do, but almost every business needs some combination of local, tax and industry licenses before it opens. Getting them right protects you from fines and lets you open bank accounts, sign leases and work with suppliers.
Does New York Require a State Business License?
No. New York State does not issue a single general business license. Forming an LLC or corporation with the New York Department of State registers your company, but it is not a license to operate. Instead, licensing happens through state tax registration, professional and occupational licenses, and local permits. The state's NY Business Express website can help you find the licenses that apply to your business.
New York City and Local Licenses
Local rules vary widely. In New York City, many business activities need a license from the Department of Consumer and Worker Protection (DCWP), and food businesses need permits from the Department of Health and Mental Hygiene. Outside NYC, cities, towns and counties set their own requirements. Always confirm zoning before you sign a lease, and check whether a home-based business needs a local permit.
New York Certificate of Authority (Sales Tax)
If you sell taxable goods or services in New York, you must register with the New York State Department of Taxation and Finance for a Certificate of Authority before you make any taxable sales. The state asks you to apply at least 20 days before you begin business. Registration is free and is done online. Display the certificate at your place of business, and use your sales tax ID when giving suppliers a resale certificate (Form ST-120).
Employers also register for state withholding and for unemployment insurance with the New York State Department of Labor.
Professional and Occupational Licenses
The New York State Education Department's Office of the Professions licenses many professions, including accountants, architects, engineers, nurses, pharmacists and therapists. The Department of State's Division of Licensing Services licenses others, such as real estate brokers, barbers, cosmetologists, nail specialists and security guards. Alcohol sales are licensed by the State Liquor Authority.
Business Licenses for New York LLCs
An LLC still needs the same licenses as any other business. The usual order is: form your LLC, get your EIN, register for New York taxes, then apply for local and industry licenses in the LLC's name. Forming the LLC first means every license is issued to your company, not to you personally. Read the New York LLC guide for formation costs and steps.
How Incofile Helps
Incofile can form your New York LLC, get your EIN and research every license and permit your business needs at the city, county, state and federal level. You receive a clear report with each license, the agency that issues it and how to apply, delivered to your 24/7 client portal. See our business license research service, or read do I need a business license for the basics. Selling products? Our guide to resale certificates explains how to buy inventory tax-free.
Frequently Asked Questions
Do I need a business license in New York?
New York has no general statewide business license, but most businesses need some combination of local licenses or permits, a Certificate of Authority for sales tax if they sell taxable goods or services, and any professional license their work requires.
How do I get a business license in New York?
Form your business entity, check local requirements with your city, county or NYC agencies, register for a Certificate of Authority with the NYS Department of Taxation and Finance, and apply for any professional license you need.
How much does a New York business license cost?
The Certificate of Authority for sales tax is free. Local licenses, permits and professional licenses each have their own fees depending on the city and industry.
When do I need a Certificate of Authority in New York?
Before you make any taxable sales. New York asks businesses to apply at least 20 days before they start doing business.
Does a New York LLC need a business license?
Yes. Forming an LLC registers your company, but it is not a license to operate. Your LLC still needs the local, tax and industry licenses that apply to its business.
Do I need a license to sell online in New York?
If you sell taxable products to New York customers, you generally need a Certificate of Authority. Marketplaces may collect tax for sales through their platforms, but direct sales still require registration.