New York Business License

Are you thinking of starting a new small business in New York? Many industries may require a business license from the State of New York in order to operate within the regulations set by the state.

BY: MARK ANDREW ON MONDAY, SEPTEMBER 23, 2019
New York Business License

New York Business Licenses, Permits and Registrations Tax Registration in New York

Starting a small business in New York will require you to perform several tasks. Such tasks include submitting applications for permits, licenses and identification numbers. The need for such applications vary according to the kind of service in which you will be providing. Of course, paying certain taxes are customary like corporate tax, sales tax and unemployment tax. However, you may be required to pay other taxes as well. But, your responsibility to paying these taxes is dependent upon the nature of your business. The following is a list of those potential taxes:

  • Highway usage tax
  • Mortgage recording tax
  • Hazardous waste tax
  • Taxicab ride tax
  • Alcoholic beverage tax
  • A more comprehensive list of possible taxes can be obtained from the New York Department of Taxation and Finance. The New York State Tax Guide is an additional source of information for those individuals who have plans to open a business in New York.

    Business Licenses

    It is mandated in New York that businesses procure the correct licenses and permits prior to opening. Primarily, it is the nature of your business that will determine the quantity of licenses and permits required and the costs of them. Different businesses require different permits and licenses. The licenses and permits needed to operate a massage parlor would differ from those required for operating a shoe repair store. Help with ascertaining which professions require which licenses or permits will be provided by the New York State Office of Professions.

    Local Permits

    You can streamline your search for the necessary permits by accessing the website for the New York State Online Permit Assistance and Licensing. Regulations are unique to that individual municipality. With that being said, the following is a list of some of the customary permits and licenses that may be required:

  • Zoning permit
  • Health permit
  • Signage permit
  • Building permit
  • Occupational permit
  • Tax permit and/or Business license
  • Incorporation Filing

    All businesses in New York that are classified as non-profits, limited liability companies, partnerships and corporations must complete an official application or form during registration. However, registration is not required for those businesses that are classified as sole proprietorships. But, it should be noted that the name of the business will be similar to the owner’s name. You can circumvent this by registering your business under a fictitious name.

    Doing Business As

    Registering your business under a fictitious name is known as “doing business as” (DBA). In other words, you are operating your business under this name as opposed to its legal name. The procedure for establishing a DBA involves just a few steps. First, you create a name that is different from your own personal name. Second, you check the database to make certain that the name you selected is actually available. Finally, you proceed to the county clerk’s office where you will register the DBA name. This procedure does not have a set price. It varies from county to county. As previously mentioned, this procedure is appropriate only if the business is a limited liability company, a partnership or a corporation. If it is a sole proprietorship, then this procedure is optional.

    Employer Requirements

    Income Taxes Being Withheld

    Typically, employment tax records are kept for four years from the point following the fourth quarter of the year. Accurate maintenance of these records is pivotal. As such, employment tax records should contain the following items:

  • Employees’ personal information, which includes their social security numbers
  • The identification number of the employer
  • Copies of employees’ tax withholding allowance certificates
  • Information regarding annuity, pension and wage payments
  • Consult the website for the Internal Revenue Service (IRS) for a more comprehensive list of items. Accurate maintenance and organization of your employment records will give you a sense of how well your business is doing. You can continuously monitor its progress and growth. Such systematic records will also help you in the preparation of tax returns, as well as with locating your receipts and determining which items are tax deductible.

    Forms W-4 and W-2

    Known as a withholding exemption certificate, Form W-4 must be signed by each employee. It is then sent to the IRS by the employer.

    The information found on Form W-2 pertains to an employee’s paid wages and withheld taxes for the prior year. This form also falls within the employer’s scope of duties. Annually, The Social Security Administration should be in receipt of copy A of this form by the end of February. However, if the form is sent electronically, then the date is extended to the end of March. Employees should be in receipt of their copies of Form W-2 by the end of January of the following year. And, all copies that are returned as being undeliverable should remain on file.

    Information regarding the filing of the W-4 and W-2 forms has been provided by the following:

  • The website for The Internal Revenue Service Employer Tax Guide
  • The website for The Social Security Administration Employer W-2 Filing Instructions and Information
  • Employee Eligibility Verification (Form I-9)

    Form I-9 must be completed by all new employees within three days of their employment. This form serves as proof that the employee is eligible to work in the United States. As such, employers are responsible for ensuring that a completed form is on file for every employee. This form is located on the website for the United States Citizenship and Immigration Services.

    Reporting New Hires

    The collection and reporting of information pertaining to new employees is the responsibility of employers. This should be performed within the first 20 days of their employment. The following information should be collected: the employee’s employment date, social security number, address, full name, health benefits and the employer’s information. More information can be found on the website for the New York State Department of Taxation and Finance New Hire Reporting.

    Insurance Requirements

    Any New York business that has employees will incur additional expenditures in the form of taxes. Such taxes include unemployment insurance, disability insurance and worker’s compensation.

    Unemployment insurance helps those employees who are able and willing to work. Situations concerning liability for this tax will differ according to the nature of your business. Your liability can be established by visiting the website for the New York State Department of Labor. The required documents can also be downloaded from this website.

    Disability insurance is beneficial for those employees who suffer injuries that are not work-related. Employers are responsible for deducting this tax from employees’ wages and sending the information to the state. More information is available on the website for the New York Worker’s Compensation Board.

    Worker’s compensation is beneficial for those employees who are injured on the job. Additional information regarding this tax can also be located on the website for the New York Worker’s Compensation Board.

    About the Author

    Mark Andrew

    Mark is a freelance content writer specializing in topics such as Internet marketing for small businesses. His goal is to help small businesses owners understand what types of services and products truely bring in more business.

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