Having a business is an exciting thought wrapped in multiple frightening licensing thoughts. Most people think they have to go through the tough licensing process. And they immediately drop the idea. But not this time, mate! This blog has practical steps to help you get a business license.
Here, we will mention all those business activities for which small businesses need permits. Most importantly, we will talk about permits that have different criteria from state to state.
So ready to start the journey? Let’s go!
The Basics of Business License
Let’s start with busting the myth that small businesses don’t need licenses. Not true! If you are selling services or any product, you need a license. There are multiple licenses, including general licenses and specific purpose licenses, to cater to the needs of each business in NYC.
What is a Business License?
It’s a permit that allows business owners to run their businesses smoothly in the state. You can say it is a legal activity that gives you permission to establish your business in a specific country, state, or city. Each business has its own licensing requirements. These criteria depend on the business you do, the area, and other considerations.
Additionally, you are required to register with the Department of Consumer and Worker Protection (DCWP) as a prerequisite for a license.
Prerequisites for NYC Business Registration
Ready to roll up your sleeves and start filling out the NYC business registration form? Hold on! You need to meet some prerequisites:
Business Structure:
As you are applying for a NYC business license, you must have a valid business structure. For instance, sole proprietorship, partnership, corporation, or LLC (Limited Liability Company). This structure will also impact the other requirements and business needs. So, be mindful while making your decision. Furthermore, educate yourself about different business structure and their obligations.
Registered Business Name:
- Your business name should be unique and not very similar to existing business names. Be sure to check the name availability from the New York Department of State’s Corporation & Business Entity Database.
- Check your business name and ensure it is not a registered trademark. You can search the US Patent and Trademark Office (USPTO) database for registered trademarks.
- It must have a legal name structure. For instance, if you have a corporation, you must add Inc., corp., or corporation with a name. Similarly, for LLCs, you must add an LLC or Limited Liability Corporation.
- The business name should not be misleading or present services that you don’t offer.
EIN:
EIN (Employer Identification Number) is another requirement you need to complete in some cases. If you are running a corporate business or planning to hire employees. You will need an Employer Identification Number. It authorizes you to collect taxes from employees’ salaries and submit them to the IRS. However, if you are a sole proprietor, you can skip this. Still, you will need to use your SSN (Social Security Number) with your business.
Sales Tax Registration:
Depending on your business structure, you might need to register for sales tax. Contact the New York Department of Taxation and Finance for sales tax, employee taxes, and other state tax queries. Additionally, you can hire a tax service provider to guide you and help in the overall process.
Essential Steps to Obtain Your NYC Business License
When you are done with licensing preconditions, it’s the perfect time to file for a license. Let your dream business become the reality of today with an NYC business license. Trust me! There are no terrifying steps. Still, if you face difficulty, just remember Tax King Service is one call away!
Now, let’s move to the first steps:
Analyze Business License Requirements:
First of all, determine the type of license you need. For instance, food vending businesses require these licenses to properly operate in NYC:
- Food vending license
- Zoning permit
- Sales tax license
There can be other conditions set by local government too. So, be sure to educate yourself with up-to-date information. Furthermore, determine whether you need a specific business license or a general business license.
Application Form Submission:
According to your requirements, fill out your application form. You can get this application from DCWP in person. Furthermore, you can download it or fill it out online on the DCWP website.
Document Attachments:
With the application form, you will need to attach the required documents. Some of these documents are necessary for every application form, while others vary according to the business type. Here are the required documents listed for the business license application:
- Proof of Identity
- Business Structure Documentation
- Business Address Verification
- Proof of Business Location Compliance
- Insurance Documents
- Financial Documents
- Health and Safety Permits
- Special Permits and Licenses
- Sales Tax Certificate
- Completed Application Forms
You need to submit all these documents with your forms to ensure they won’t get rejected by authorities.
Application Status:
Final Verdict:
Overall, following all the regulatory requirements looks overwhelming. Especially when you are a small business owner and cannot invest. Furthermore, you must find a way to afford the rejection of your requests for the NYC business license. Therefore, you should hire a firm that can obtain a permit for your business at all levels. This small investment helps you complete the legal processes instantly. Additionally, saving you from stress. So you can move towards revenue generation immediately.
FAQ (Frequently Ask Question)
1- Does New York Require a Business License?
- Of course, businesses in New York require licenses, no matter their size and structure. At least you need a general business license to operate in NYC.
2- How do You Get a Business License in New York?
- Simply, fill out the application available on the DCWP website, attach the required documents and there you have it.
3- Do I Need a Business License to Sell Online in NY?
Most of the online businesses require a license to work in NYC. There can be exceptions, though. The majority of businesses have to go through the Small Business License NYC process to obtain their permits. Additionally, if you run an e-commerce store, you will need a certificate of authority to collect sales taxes.
4- How Much Does It Cost to Start a Business in NYC?
Typically, $200 to go through the application and licensing process. However, the cost can vary depending on business structure, type and other details.
5- Is NYC a Good Place to Start a Business?
Absolutely, NYC is the best place to start your business journey. It is the central point for major industries. Additionally, licensing requirements are pretty simple and straightforward as compared to other states. You must have some basic knowledge of taxes and licenses, though.
6- How Long Does It Take to Obtain a Business License in NYC?
Sole proprietorship business typically gets their license within a few days or a week. However, the time it takes to obtain a business license in NYC varies. It usually depends on business structure, permit requirements, business size and other details. For instance, some businesses need multiple licenses including EIN, sales tax license, general business license and more. Meanwhile, some businesses don’t require as many licenses.
7- Is an NYC Business License Revocable?
Yes, the NYC business license can be revoked in certain circumstances. Here are a few reasons mentioned below which can cause license cancellation:
- Non-compliance with regulations
- Failure to renew
- Fraud or misrepresentation
- Criminal activity
- Violation of license conditions
- Public complaints or violations
- Unpaid fines or fees
However, the revoked license can be reinstated after rectifying problems. Usually, the business owner receives a notice prior to the termination of the license to address the issue and clarify things.
8- Who Requires a NYC Business License?
Businesses that sell goods and services are required to have a NYC business license. If you are selling anything that is subject to sales tax, you must get a license. Additionally, you will need a certificate of authority from a New York tax agency to collect and remit sales tax. Furthermore, if your business is operating through multiple locations, you will need a certificate of authority for each.
9- How Can I Submit An NYC Business License Application?
There are two ways to submit your license application:
Online: Fill out the form on the DCWP website and attach the necessary documents. You will also need to submit a license fee with the application. Although the fees are subject to change and heavily depend on your business.
In-Person: DCWP also accepts in-person applications. But only in their Manhattan and Queens locations. You need to book an appointment with them to submit in-person applications.
10- Is LLC a Business License?
No, LLC (Limited Liability Company isn’t a permit. However, it’s a legal business entity. Basically, it’s a type of business structure from many others. Where business permits and licenses allow you to perform business legally. In short, LLC and NYC business licenses are two totally different things.
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