How Much Does a Business License Cost in New York?

Like most states, New York doesn’t require a general statewide business license. However, that doesn’t mean your New York enterprise isn’t going to need any licensing.

Many lines of business are regulated by New York agencies that require their practitioners to be licensed. In addition, many cities and counties require licenses to do business under their jurisdiction. New York City, for example, has an entire online system to help businesses navigate its licensing requirements.

Because there is so much variation in what licenses are required, it’s impossible to say what your state licensing costs will be without knowing what businesses you pursue and where you pursue them. Many small businesses will find that their licenses cost $200 or less, but there are significant exceptions.

One piece of good news: the New York Department of State (DOS) provides online facilities, as well as phone-based help, to assist you in determining which licenses you will need.

Read on for a discussion of which licenses your New York business might require, how to go about obtaining the business license and permits, and what the cost might be.

Do you need a business license in New York?

While it’s true that the Empire State has no requirement for a general business license, many small businesses will need licensing of some kind.

Most professional services require licensing by a state agency. Many cities and counties have business license requirements. In addition, any business that makes sales subject to sales tax must have a Tax Certificate of Authority from the Tax Department.

For the average entrepreneur, that answer to whether you need a New York business license is, ”Yes, you probably do.” Since there are significant penalties, including fines and possibly even shutting down your company, it behooves you to take the time to determine whether you need any licenses.

How much does a business license cost in New York?

The actual New York business license cost depends on your type of business activity and where you conduct that activity. Every license has its own unique fee.

As a rule of thumb, a small business without much complexity might pay between $50 and $200 for New York licensing. If you operate in more than one location, you can expect to spend more. If you are in multiple lines of business, you should plan on higher licensing fees.

You should also note that licenses are not valid in perpetuity. They might be good for anywhere from one to five years, and, after that time, you will have to pay a renewal fee. Renewal fees are generally lower than the initial licensing fee.

Which business licenses do I need in New York?

There are hundreds of licenses issued by New York state agencies for activities such as professional services and manufacture and sales of certain goods. Many of these are statewide, but localities may add both general business licenses and licenses for specific activities. In addition, business owners should be aware that there are several lines of endeavor that are governed by federal agencies and require licenses from those agencies.

There are online sites and other sources of information to help you determine which licenses you must obtain.

Industry Licenses

A great place to start checking into licensing is the New York State Professional or Business License or Permit web page. This contains links to search, application, and renewal pages, and it also has the phone number for the DOS Department of Licensing services (518 474-4429).

The page provides a list of many (but not all) of the professions that require licensing, from armored car services to cosmetology to telemarketing.

You can also start your search at New York Business Express, a guide to doing business in New York. To use this system, you will need a NY.GOV user ID. If you don’t have one, you can get it right there at the site.

If you don’t mind scrolling through a long list, there is also a Business Index A-Z that has information on all the licenses from New York agencies. Many have the fees and a link to the application right there, and the others tell you where to get more information.

Another useful website is the Business Express Business Wizard, which leads you though a question-and-answer exercise that takes about 10 minutes and shows you all the regulations that apply to your line of work.

The State of New York Licensing page is yet another portal to sites for applying for and renewing licenses.

Local Licenses

Although the state doesn’t issue a general business license, many New York cities, towns, and counties require a basic license for doing business under their jurisdiction. In addition, many of these localities require licenses and permits for specific business activities, and they may require credentials like zoning permits, occupancy permits, and local health department permits.

You will have to check with every jurisdiction where you plan to do business to find out which credentials are required. Some localities have websites with this information, and in other cases you will need to call the local government desk.

New York City, being as large as it is, has its own Business Wizard. If you plan to do business in the city, you can enter info about your business and be provided with information from the issuing agencies.

Sales and use tax registration

Most states require a seller’s license for any business that’s required to collect sales tax. In New York, this is issued by the Tax Department, and it’s called a Sales Tax Certificate of Authority. You can apply online.

If you plan to do business in more than one location, you will need a separate certificate for each one.

Federal licenses

If your business is regulated by a federal agency, you may need a license from that agency. Examples of these lines of business are agriculture, aviation, broadcasting, drilling and mining, firearms, fish and wildlife, liquor license, maritime transportation, nuclear energy, transportation and logistics.

The Small Business Administration maintains an Apply for Licenses and Permits page. If you are engaged in a federally regulated business, check here for links to the various agencies where you can determine whether you need to apply. You can also find the links for actually submitting the application.

Renewing your business license in New York

Most New York licenses are valid for a limited period of time and require renewal. Most renewals can be processed online at the issuing agency’s website. You can start your search at the New York Business Express Renewal Page.

Some agencies will issue a reminder that renewal is coming due. However, it’s your responsibility to be aware of renewal requirements and make timely renewal application.

There can be specific deadline requirements that apply to specific New York licenses. For example, some must be renewed within a specified period of time prior to the renewal date, while a few others can be renewed only at set times of the year.

Get Help Starting Your Business in New York

If you plan to start a business in New York, there’s a good chance that you will need some licenses. For most small businesses, there will be limited licensing, and the cost may be less than $200. Some, especially those in multiple locations or in stringently regulated fields, may pay more. There is online and phone-based help available to determine exactly what you need.

Starting a new business is complex, and licensing requirements make up only one piece of the puzzle. That’s why many entrepreneurs turn to online business formation services when initiating new LLCs and other corporate structures. These services can walk you through the process and ensure that you don’t miss any critical steps.

Online business formation services support you as you create formation documents, apply for licenses, and register your business with the state. They also provide ongoing services like mandated reporting and acting as your registered agent.

If you do business in more than one state, these services can track all your requirements and deadlines and make sure you stay in compliance everywhere.