How To Start A Business In New York City: Steps, Costs And The Services You Need
Josh Walker
Freelance Writer
06.10.2026
Short answer: to start a business in New York City, choose a structure, register it with New York State (an LLC costs $200 to file, plus a newspaper publication requirement that is most expensive in Manhattan), get a federal EIN, register for sales tax at least 20 days before you start selling anything taxable, and check whether your industry needs a city license. Then line up the outside help most new businesses need: an accountant, a lawyer for contracts, a website, and marketing.
New York City is one of the most rewarding places in the country to start a business and one of the most paperwork-heavy. Some of the rules are statewide, some are city-specific, and a few, like the LLC publication requirement, exist in almost no other state. This guide walks through the registration steps in order, flags the costs that catch new owners off guard, and then covers the outside services you will need and how to choose them.
This guide is general information, not legal or tax advice. Rules change, so confirm the details with the agencies linked below or with your own accountant or attorney.
Your structure decides how you register, how you are taxed and how much personal liability you carry. The common options:
Structure
How it works
Worth knowing in New York
Sole proprietorship
You and the business are legally the same. Simplest to start.
If you trade under any name other than your own, file an assumed name certificate with the county clerk. No liability protection.
General partnership
Two or more owners, no separate legal entity.
Same assumed name filing applies. Partners share liability.
Limited liability company (LLC)
Separate legal entity that shields owners’ personal assets.
$200 state filing fee plus the publication requirement covered below.
Corporation (C or S)
Separate entity with shareholders, directors and officers.
Suits companies planning to raise investment or issue stock. More formalities.
Most small businesses in New York choose an LLC for the liability protection. An accountant can tell you whether electing S corporation tax treatment makes sense once you are profitable.
Register With New York State
LLCs and corporations are formed by filing with the New York Department of State. For an LLC, the main state fees are:
One rule changed recently and is worth clearing up. The New York LLC Transparency Act took effect on January 1, 2026, but after amendments it requires beneficial ownership reports only from LLCs formed outside the United States that are authorized to do business in New York. An LLC formed in New York or another US state does not have to file.
The LLC Publication Requirement
This is the step that surprises most new owners, because almost no other state has it. Within 120 days of forming a New York LLC, you must publish a notice of formation once a week for six consecutive weeks in two newspapers, one daily and one weekly, chosen by the county clerk in the county where your LLC is located. You then file a Certificate of Publication, with affidavits from both newspapers, and the $50 fee.
The cost of the newspaper ads varies by county, and New York County, which is Manhattan, is the most expensive. That is why some owners list an office address in another county, but the address has to be legitimate, so take advice before choosing that route.
If you miss the deadline, your LLC’s authority to carry on business is suspended. Among other things, a suspended LLC cannot sue in New York courts. Completing the publication later restores its authority.
Get Your Tax Registrations In Place
Federal EIN. Get an Employer Identification Number from the IRS. It is free, and you need it to open a business bank account and hire staff.
Sales tax Certificate of Authority. If you sell taxable goods or services, even occasionally or from home, you must register with the New York State Department of Taxation and Finance at least 20 days before you begin business. Operating without one can cost up to $500 for the first day plus up to $200 for each day after, to a maximum of $10,000. Registration runs through New York Business Express.
NYC Commercial Rent Tax. If you rent commercial space in Manhattan south of the center line of 96th Street and your annual base rent is $250,000 or more, you may owe this city tax, at an effective rate of 3.9%. A small business credit removes it for tenants with total income of $5 million or less and annual base rent under $500,000.
Income taxes. New York City has its own business taxes on top of state and federal income tax. This is the strongest argument for hiring an accountant early.
New York City has no single general business license. Instead, the Department of Consumer and Worker Protection licenses specific industries, more than 45 of them, including employment agencies, secondhand dealers, debt collectors, general vendors, process servers, delivery services, tobacco retailers and, since May 2025, hotels. Restaurants, construction trades, childcare and health businesses have their own permits through other agencies.
Check your industry on the DCWP licensing page before you sign a lease, because some licenses depend on the location and the space you choose.
If You Will Hire Employees
Insurance. New York employers must carry workers’ compensation and disability and Paid Family Leave coverage.
Paid safe and sick time. New York City requires employers to provide paid safe and sick leave. Amendments that took effect on February 22, 2026 added a separate bank of 32 hours of unpaid leave for every employee, regardless of employer size, alongside 20 hours of paid prenatal leave a year.
Payroll setup. Withholding for federal, state and city income tax starts with your first paycheck. A payroll provider or accountant prevents expensive mistakes here.
The Services You Will Need
Very few founders handle all of this alone. These are the outside services most new New York businesses use, roughly in the order they become urgent:
Service
When you need it
What to look for
Accountant or CPA
Before you choose a structure
New York City tax experience, and a clear fee for setup plus ongoing bookkeeping
Business attorney
Before you sign a lease or partner agreement
Experience with commercial leases and your industry. NYC leases are often heavily negotiated
Registered agent or formation service
When you form the LLC
Transparent pricing on the publication requirement, which varies sharply by county
Business insurance broker
Before you open or hire
Covers general liability, property, and the workers’ comp and disability coverage NY requires
Website and ecommerce
Before launch
A written scope, ownership of your domain and site, and accessibility built in
Branding
Before the website, ideally
Name and identity checks, so you do not have to rebrand after launch
Marketing and local SEO
From launch
Local search experience in your neighborhood and category, with reporting you can read
IT and software
As you grow
Security, backups and systems that match your size
We rank New York providers in several of these categories:
Check name availability and any license your industry needs.
Form the LLC or corporation with the Department of State.
Get your EIN, then open a business bank account.
Start the LLC publication process within 120 days.
Register for sales tax at least 20 days before your first taxable sale.
Have an attorney review your lease before you sign it.
Arrange insurance, then payroll if you are hiring.
Build your brand and website, then start marketing.
Frequently Asked Questions
How much does it cost to start an LLC in New York?
The state fees are $200 for the Articles of Organization and $50 for the Certificate of Publication, plus $9 every two years for the biennial statement. The newspaper publication itself is usually the largest cost, and it is highest in Manhattan.
Do I need a business license in NYC?
There is no general business license. You need a city license only if your industry is regulated, such as employment agencies, secondhand dealers, vendors or food businesses. Check the DCWP licensing page for your industry.
What happens if I skip the LLC publication requirement?
Your LLC’s authority to do business is suspended until you comply, which among other things stops it from bringing a lawsuit in New York courts. Publishing later restores its authority.
When do I need a sales tax Certificate of Authority?
If you sell taxable goods or services in New York, you must register at least 20 days before you start. Operating without one can lead to penalties of up to $10,000.
Do New York LLCs have to report beneficial owners in 2026?
Not if the LLC was formed in the United States. Under the amended New York LLC Transparency Act, only LLCs formed outside the US that are authorized to do business in New York must report.
Can I run a business from my apartment in NYC?
Often, yes, for home-based work such as consulting or online sales, but zoning rules, your lease and building rules may limit customer visits, signage and certain business types. Check before you register your home as the business address.
The Short Version
Starting a business in New York City comes down to a handful of filings done in the right order: choose a structure, form your LLC for $200, complete the publication requirement within 120 days, get an EIN, register for sales tax 20 days before you sell, and check for an industry license. Hire an accountant first and a lawyer before you sign a lease, then build your brand, website and marketing. When you reach that stage, our lists of New York providers above are a good place to start.
