Starting a small business in New York often means registering with several federal, state, and local agencies. Let’s review common New York business license registrations so your business starts off right.

Related: Guide to starting a business in New York 

Setting Up the Business

Before you can apply for business licenses, you should first establish the business structure. This decision impacts your legal responsibilities, taxes, and how much personal liability you might face. Here’s a brief explanation of each type of structure:

Sole proprietorship: This is the simplest form of business structure, where one person owns and runs everything. There’s no separation between the owner and the business, meaning the owner is personally responsible for all debts and legal actions against the business. Taxes are straightforward as the owner reports business income on their personal tax return.

General partnership: Similar to a sole proprietorship, but with two or more people running the business. Partners share profits and losses, and like sole proprietors, they are personally responsible for the business’s debts and legal issues. Partnerships also don’t pay taxes as a separate entity; instead, each partner includes their share of profits or losses in their personal tax filings.

Corporation: A corporation is a more complex entity that is separate from its owners, providing personal liability protection. Owners, known as shareholders, are not personally responsible for the corporation’s debts or legal problems. Corporations can raise money by selling stock and are taxed separately from their owners. This entity requires more requirements, like having board meetings and record-keeping.

Limited Liability Company (LLC): An LLC blends elements of sole proprietorships, partnerships, and corporations. Owners (members) have limited personal liability for business debts and actions. Like sole proprietorships and partnerships, an LLC can pass income directly to owners to avoid double taxation, a common issue with corporations. This structure offers flexibility in management and less strict requirements than a corporation.

Related: Comparison of Business Structures

What Licenses Do New York Businesses Need?

With the business structure out of the way, we can begin looking at the different types of registrations businesses in New York may need. There isn’t a standard business license, as requirements vary depending on where the business is located and what it does. Here is a general overview of the different registrations your business may need.

General Business License

There is no general state of New York business license, however, many cities require businesses to be licensed in order to operate. Rules for business registration vary depending on location and business type. Below are a few cities that have licensing requirements.

• New York City: Many businesses need a business license in New York City to operate. The Department of Consumer Affairs requires businesses such as car washes, contractors, locksmiths, and others to register.
• Buffalo: Certain businesses need licensing before operating in the city limits of Buffalo. The Buffalo Office of Licenses issues licenses to specific types of businesses, such as bakers, caterers, collection agencies, landscapers, and more.
• Rochester: The City of Rochester, has a Business Permit Program that requires businesses such as restaurants, auto mechanics, and salons to register. Businesses can complete a Business Permit Application or by visiting a Neighborhood Service Center.
• Yonkers: The City of Yonkers requires licenses for businesses operating as food vendors, contractors, laundromats, locksmiths, and several others. Licensing is through the City Clerk’s Office.
• Syracuse: Certain types of businesses operating in Syracuse’s city limits will need to obtain a business license from the Central Permit Office. A few examples include; bars & restaurants, pawn shops, newsstands, snow plowing, and several others.

Assumed Name Registration

While not a small business license, it’s common for Sole Proprietorships and Partnerships operating under a business name that is different from the full name of the owner(s) to register for an Assumed Name (also known as a Doing Business As, DBA, or Trade Name) with the County Clerk’s Office in the county where the business is located.

Building & Zoning Permits

• Zoning: Zoning permits in New York verify that a business location is appropriate for its intended use, according to local land use regulations. These permits are obtained from the municipal zoning office, ensuring business activities fit the designated area’s zoning classification.
• Building Permit: Building permits are required in New York for new construction, expansions, or major renovations to meet state and local construction and safety standards. Applicants must submit plans and receive approval from their local building department.
• Signage Permit: Signage permits in New York regulate the design, placement, and size of business signs to conform to local ordinances and safety guidelines. These permits are acquired from the local planning or zoning office, ensuring signs are safe, effective, and in harmony with the community’s aesthetic standards.

Sales Tax Certificate of Authority

Businesses that sell physical products or provide certain taxable services must register for a Sales Tax Certificate of Authority from the New York State Department of Taxation and Finance.

Resale Certificate

Businesses purchasing merchandise to resell will usually want to obtain a New York State Resale Certificate to not pay sales tax on merchandise that is intended to be resold to customers.

Occupational License

A variety of occupations in the state are regulated and need to be registered before offering certain services. A few common professions that require licensing in New York include; cosmetologists, barbers, athletic trainers, home inspectors, and many more. Additional information, fees, and licensing requirements for professions are available from the New York Department of State.

In addition to professional licenses from the Department of State, businesses in a variety of industries such as food establishments, daycares, salvage yards, and others also require licensing.

Employer Identification Number (EIN)

Many businesses will register with the Internal Revenue Service (IRS) for an EIN (also referred to as a FEIN, Federal Employer Identification Number, or Federal Tax ID Number). The EIN is the business equivalent of a Social Security Number for an individual.

Learn how to apply for an EIN

Next Steps

These are some of the most common business licenses a new business in New York will need to register for. Be advised that while it’s a good start, there are so many different licenses that may be needed, be sure to double-check with the City Clerk’s Office, Chamber of Commerce, and/or Economic Development office in your area before opening your doors.