A business license is not the same as forming an LLC (limited liability company) or other legal business entity. An LLC is a legally recognized business entity, while a business license gives you permission to participate in a specific type of business in a given jurisdiction. They serve separate purposes and a business license cannot be replaced by an LLC. Both are necessary if you want to legally operate an LLC in a given city, county, or state.
The sales tax authority certificate is renewable at the discretion of the Department of Taxation and Finance. Vendors are randomly selected by the state for renewal and a notification letter with instructions is then mailed to them. The IRS issues an Employer Identification Number (EIN) to identify and track businesses, but does not grant them a license to operate. How to Create a Nonprofit Organization in New York.
Understand State Licenses and Permits Visit the New York State Business Assistant to determine the requirements for your business and request the correct license or permit. Apply for a sales tax authority certificate from the New York State Department of Taxation and Finance. Some types of business entities require a DBA or doing business as a name, but you won't need it when you create an LLC in New York. In fact, if you decide that you would like to operate under a name other than your business name, you will need to file a Certificate of Assumed Name with the New York Department of State.
Not all types of businesses require a business license. Most businesses that sell goods and others that sell some services require a certificate of authority, which is a sales tax certificate used to collect and pay applicable sales taxes. Some companies that provide professional services must obtain a professional license. The New York Office of Professions offers a list of licensed professionals (such as doctors, lawyers and CPAs).
Licensed professions (such as barbers and home inspectors) are on the New York government site. Because a standard business license is not required in New York, business owners will need to dig a little deeper to find out if their business requires a business license. Know that most businesses that sell products will need a sales tax certificate and, if you are a professional, you may need a license to operate. A limited liability company (LLC) is a business entity, not a license.
Provides the legal framework that allows a company to operate in the state. Depending on the type of business, a company may also need to obtain a business license, such as a sales tax certificate or professional license. Learn more about creating an LLC in New York. In addition to licenses related to professions and occupations (see below), your company may need licenses or permits related to things such as agriculture, food, the environment, or the sale of certain products (such as alcoholic beverages).
You'll need to work with each agency or department of state to get the right business license for your company. In New York City, you can use the step-by-step online business assistant to determine exactly how to start a business in the city. It's important to note that obtaining a business license is not the same as forming an LLC or other legal entity for your business. There is no general business license applicable to all companies; you need to know what business license you want to obtain.
The New York State Business Express Assistant can help you identify licensing regulations for your business. You can decide to form an LLC, or a limited liability company, if you want the simplicity of a sole proprietorship with the legal protections of a corporation. If you own and operate a business, you usually need to obtain a business license to comply with local regulations. The New York Business Express website provides more information on various state licenses and how to obtain them.
If an article cites or provides a link to third party sources or websites, Harvard Business Services, Inc. New York Business ExpressNew York Department of Taxation and FinanceNew York Licensing Services Division New York City Websites New York County Websites. LLCs in New York also need to update their contact information every two years with the New York Department of State. Other business entities that use a false name, such as sole proprietorships and general partnerships, must file a form with the county clerk of each county in which the entity conducts business.
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