How to Start a Business in New York (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in New York, pick a legal structure, register it with the New York Department of State, get a free EIN from the IRS, register with the New York State Department of Taxation and Finance for state taxes, and obtain any licenses your activity and city require. Most owners form an LLC by filing a Articles of Organization. New York also imposes a publication requirement on new LLCs and requires a Certificate of Authority to collect sales tax.

Step 1: Choose a Business Structure

Your first decision is the legal structure, because it drives liability, taxes, and paperwork. The common options are a sole proprietorship (simplest, but no liability protection), an LLC (liability shield with flexible taxation), and a corporation (best for raising investment). Most small businesses in New York choose an LLC for the balance of protection and simplicity. Compare options at S-corp vs LLC and the how to start a business hub.

The structure you pick determines what you file next. A sole proprietor has no state formation filing; an LLC or corporation registers with the New York Department of State. Your choice also affects taxes: a sole proprietor and single-member LLC are taxed on the owner's return, while an LLC can later elect S-corporation status. Decide this before registering so the rest of the steps line up.

Step 2: Register Your Business with New York

To form a New York LLC, file Articles of Organization with the New York Department of State, Division of Corporations, and appoint a registered agent (the Department of State is the statutory agent for service, but you provide an address for forwarding). New York uniquely imposes a publication requirement: within 120 days of formation you must publish notice in two newspapers designated by the county clerk and then file a Certificate of Publication. See how to form an LLC in New York and New York Articles of Organization.

Check name availability in the New York business entity search first. A sole proprietor has no state formation filing but registers any assumed name (a county-level "doing business as" for individuals) and handles the tax and license steps. Budget for the publication cost, which varies widely by county and can be significant in the New York City area.

Step 3: Get an EIN

Next, get an Employer Identification Number (EIN) from the IRS. It is free, issued immediately through the IRS online application, and used to open a business bank account, hire employees, and file taxes. An LLC, corporation, or any business with employees needs one; a solo sole proprietor without employees can use a Social Security number but usually gets an EIN anyway to keep finances separate.

Apply after your entity is registered so the names match. Keep the IRS confirmation letter with your records - banks and the New York State Department of Taxation and Finance will ask for the EIN. Never pay a third-party service for an EIN; the IRS provides it directly at no cost. See how to get an EIN for the full process and the information you need before applying.

Step 4: Register for New York Taxes

With your EIN in hand, register with the New York State Department of Taxation and Finance for the state tax accounts your business needs. If you sell taxable goods or services, you need a sales tax permit or seller's permit before making sales. If you have employees, you set up a withholding account, and the entity registers for New York income or franchise tax as applicable. See New York LLC tax filing for the ongoing returns.

Register before you begin collecting money from customers, since operating without required tax registration can bring penalties. The New York State Department of Taxation and Finance ties your accounts to your EIN, so have it ready. Also plan for federal taxes: an LLC owner pays income tax and self-employment tax on business profit, generally through quarterly estimates.

Step 5: Obtain Licenses and Permits

New York has no single general state business license, but many businesses need specific licenses and permits. Most importantly, if you sell taxable goods or services you must register for a Certificate of Authority from the New York State Department of Taxation and Finance to collect sales tax - required before you make taxable sales. Regulated professions and trades need licenses from state agencies such as the Department of State's Division of Licensing Services. See New York business licenses.

New York City and other localities add their own licensing - the NYC Department of Consumer and Worker Protection licenses many business types, for instance. Check both state and local requirements, and confirm zoning for your location. The SBA covers federally regulated activities that need federal permits.

Step 6: Publication, Banking, and Records

New York LLCs must complete the publication requirement and file the Certificate of Publication to remain in good standing - do not skip it, as failure can lead to suspension of the LLC's authority to do business. After that, open a dedicated business bank account using your filed Articles of Organization and EIN letter, keeping business and personal money separate to protect the liability shield.

Set up bookkeeping immediately and calendar your filings, including New York's biennial statement for LLCs and corporations. Solid records simplify sales tax returns, income tax, and estimated payments, and support the deductions that reduce your self-employment tax. Consider appropriate business insurance for your industry.

Step 7: Stay Compliant Year After Year

Once you are open, ongoing compliance keeps the business in good standing. An LLC or corporation must maintain a registered agent and file its periodic report with the New York Department of State - see New York annual report. File and pay federal and New York taxes on time, renew licenses, and keep business and personal finances separate to preserve your liability shield.

Good records make each of these easier: track income and expenses from day one, keep a dedicated business bank account, and calendar your filing deadlines. If you ever wind the business down, close it properly rather than abandoning it - see how to dissolve an LLC in New York. Starting is a handful of steps; staying compliant is a habit.

Frequently Asked Questions

How do I start a business in New York?

Choose a structure, register your LLC or corporation with the New York Department of State (or start as a sole proprietor), get a free EIN from the IRS, register with the New York State Department of Taxation and Finance for state taxes, and obtain any licenses your activity and city require.

Do I need a business license to operate in New York?

It depends on your activity and location. There may be no single general state license, but you may need a sales tax permit, a local city license, and profession-specific licenses. Check state and local requirements.

How much does it cost to start an LLC in New York?

The main cost is the Articles of Organization filing fee charged by the New York Department of State; check the current fee schedule. An EIN is free, and additional costs depend on licenses and any registered agent service you hire.

Do I need an EIN to start a business in New York?

An LLC, a corporation, or any business with employees needs an EIN. A solo sole proprietor can use a Social Security number but usually gets a free EIN to open a bank account and separate finances.

What taxes will my New York business pay?

Federally, business profit is subject to income tax and self-employment tax for pass-through owners. In New York, you may owe state income tax and collect sales tax; register with the New York State Department of Taxation and Finance for the accounts that apply.

Related

• How to start a business (cluster hub)
• How to form an LLC in New York
• How to get an EIN in New York
• New York business licenses
• Sole proprietorship in New York
• New York LLC tax filing
• S-corp vs LLC

Sources

1. New York Department of State - Division of Corporations business filings.
2. New York State Department of Taxation and Finance - business tax registration.
3. New York Department of State - forming a limited liability company (Articles of Organization; publication).
4. New York State Department of Taxation and Finance - register for a Certificate of Authority (sales tax).
5. New York State - Business Express (licenses and permits wizard).
6. IRS - Get an Employer Identification Number (EIN) (free; one per responsible party per day).
7. IRS - Limited Liability Company (LLC) (default federal tax classification).
8. U.S. Small Business Administration - Register your business.
9. U.S. Small Business Administration - Apply for licenses and permits.
10. IRS - Self-Employment Tax (Social Security and Medicare Taxes) (15.3% rate).
11. IRS - State Government Websites (state tax and business links).
12. Legal Information Institute - Limited liability company (LLC).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the New York Department of State and New York State Department of Taxation and Finance before acting.