How to Get a New York Business License

Do you need a business license in New York?

Your location, company structure, and the type of business you operate will determine the permit and licensing services you'll need to operate legally.

New York State licenses and permits

A general business license at the state level doesn't exist in New York State, but that doesn't mean you don't need state business licenses and permits to run your business. To find out what you need, enter your information into New York State's Business Wizard. Your input information will generate answers about permitting and licensing services for your business.

State government agencies are responsible for issuing licenses and permits. For example, the New York Department of State offers licensing for over 30 professional occupations, including real estate, cosmetology, and security, while the New York State Department of Education issues professional licenses to private schools, including vocational training schools, trade schools, computer training schools, and language schools. Some businesses may require both a license and a permit to operate.

Local licensing requirements

Depending on the area of New York where your business is located, you may need a business license or permit at the local level. New York City is so large it has a Business Wizard separate from the state's. It works like the state Business Wizard does—you enter information about your business, and it provides you with the agency issuing the license or permit.

For smaller cities, you can contact the issuing government agency in your business location to speak with your city or county clerk's office regarding licensing requirements.

Federal licenses and permits

If your business is regulated by a federal agency, you'll need a federal license or permit to legally operate in New York State. Some examples of federally regulated industries include agriculture, aviation, alcohol, firearms, ammunition, broadcasting, mining and drilling, nuclear energy, fisheries and wildlife, and transportation and logistics. License requirements and fees will vary depending on the business activity and issuing agency.  

How to get a business license in New York in 5 steps

Below is the step-by-step process for getting a business license in New York State.

Step 1: Choose your entity

You'll need to form a business entity before you can get a New York business license. This involves creating a name, reserving it, and registering your business with the state.

If your business is a sole proprietorship or general partnership in your name, you'll register it in the county of your business location. If your business is a corporation, limited liability company, or limited partnership, you'll file with the New York Department of State.

Step 2: Apply for an EIN

If you plan to have employees, you'll need an employer identification number (EIN) for payroll. This unique, identifying nine-digit number is issued to businesses by the Internal Revenue Service (IRS).

You may also need an EIN to open a business bank account, file federal tax returns, or establish a loan or line of credit. You can apply online for the number through the IRS website, by fax number, or by mail. An EIN is free. You can also use LegalZoom’s service to save yourself time.

Step 3: Determine business license(s)

Your business structure, location, and profession influence whether you need a state, local, or federal business license. You can find out exactly what you need by inputting information into New York State's Business Wizard, which provides a customized list of required endorsements and fees.

Step 4: Contact local government agencies

Contact local government offices in your area to find out if you need a license or permit and information on its fees, forms, and requirements. Multiple municipalities will more than likely require numerous licenses or endorsements.

Step 5: Check federal requirements

If you run a business regulated by a federal agency (for example, gun or alcohol sales), you'll need a federal license to operate in the state of New York. Issuing agencies can be found on the Small Business Administration's website.

After getting your New York State business license

When you receive your New York business license or permit, you are typically required to display it prominently at your business location, where it is visible to customers and inspectors. You may also have to display certificates, like a certificate of authority, if your business sells goods or services subject to New York sales tax. This certificate comes from the New York State Department of Taxation and Finance.

New York State business license requirements include renewal. If you're uncertain whether you need to renew yours, contact the agency that issued your business license for more information.

Getting a NY business license the easy way

While it's not too difficult to get a New York business license on your own, LegalZoom can help you organize and fast-track the process through its business license report and management service.

No matter your company structure, our service helps you simplify the steps of getting licensing, permit, and registration information you'll need for legal business operation in the Empire State. Our service also lets you know when it's time for renewal.

New York business license FAQs

What should I do before getting a business license?

Start by using our business name search tool to make sure the name you want is available. If your business name is available, reserve it to ensure no one else has it. You'll need to obtain an EIN from the IRS if you plan on having an employee payroll.

Unless you have a sole proprietorship or a general partnership, you'll register your business with the New York Department of State. After fulfilling these requirements, you can apply for state, municipal, or federal business licenses and permits.

How much does a business license cost in New York?

Each issuing agency sets its own business license and permit cost. Licenses are typically between $50 and $200 or more.

How long does it take to get a New York business license?

It can take from a few days to a few weeks to get business licenses and permits in New York, as each issuing government agency has a different timeline.

Can I transfer my New York State business license to a new owner?

Transferring ownership of a New York business license typically requires the new owner to apply for a new license, as most licenses are non-transferable.

Does a sole proprietor need a business license in New York?

A sole proprietorship does not usually need a New York business license. However, depending on your profession, the location of your business, and whether or not you hire employees, it may be required.