How to start a business in New York

What do you file before you open in New York?

1. Pick a structure

   Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See New York LLC guide, New York corporation guide, S corp or C corp in New York. By trade: cleaning business, handyman.

2. Check and register the name

   Search the Division of Corporations records before you pick a name: state name search. See New York name search guide.

3. File with the state

   New York charges the state filing fee once: an LLC costs $200 ¹ and a corporation's articles of incorporation cost $125 ². See LLC cost.

4. Name a registered agent

   In New York the Secretary of State serves as statutory agent for corporations against whom process may be served. ³ Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See New York registered agent rules.

Which accounts do you open after you file in New York?

1. Get an EIN

   An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. ⁴

2. Open your state tax accounts

   The New York State Department of Taxation and Finance requires every person who sells taxable property or services to register through New York Business Express before beginning business. ⁵ See Sales tax permit.

3. Register as an employer

   The New York State Department of Labor registers employers for unemployment insurance, and employers that are liable pay into the fund through the Department of Taxation and Finance. ⁶ New York employers report each newly hired or rehired employee to the New York State Department of Taxation and Finance within 20 calendar days of the hiring date. ⁷ The New York State Workers' Compensation Board states that virtually all employers in New York must provide workers' compensation coverage for their employees. ⁸

What keeps your New York business in good standing?

1. Check licenses and permits

   New York State's Business Express portal says counties, cities, towns and villages also require local permits and licenses, and its Business Wizard points to the New York State licenses that apply to a particular business. ⁹

2. Calendar the yearly filings

   New York biennial statement: $9, due every two years, in your formation anniversary month. ¹⁰ See New York annual report.

3. Use free local help

   Small business advising in New York runs through the New York Small Business Development Centers. ¹¹ New York Business Express is the state's portal for starting a business, and its Business Wizard identifies which New York State licenses a business needs. ¹²

What it costs to start a business in New York

Do you need a business license in New York?

It depends on the trade and the place. The U.S. Small Business Administration says most small businesses need a combination of licenses and permits from federal and state agencies, and that requirements and fees depend on the business activity and the issuing agency. ¹⁴ New York's own rule is in step 8. ⁹ Where to look up licenses: New York Business Express.

Also in New York

• Disability benefits insurance. Under New York Business Express guidance, disability benefits insurance for off-the-job injuries is required when an employer has employees for more than 30 days in a calendar year. ¹⁵
• Paid Family Leave coverage. The New York State Workers' Compensation Board says employees who must be covered for disability benefits must also be covered for Paid Family Leave benefits. ¹⁶

More for New York

• LLC guide
• Corporation guide
• New York LLC cost
• Name search
• Registered agent
• New York sales tax permit
• Annual report
• S corp or C corp

Common questions