Although launching a small business in the Big Apple is an exciting prospect, it is not without its fair share of licensing and regulation hurdles. Legal operation of any business, be it a restaurant, retail store, or service-based venture, requires the acquisition of the appropriate licenses and permissions. To aid small businesses in NYC with their licensing needs and to steer clear of expensive pitfalls, we have compiled some vital advice.
1. Be Familiar with the Licenses Necessary for Your Nature of Business
Different companies have different license needs. Certain permits can be necessary for your business. A few typical instances are these:
- Businesses in the retail sector are subject to licensing requirements set out by the DCWP, which include the sale of certain things such as electronics, used goods, and tobacco.
- Companies in the Food and Beverage Industry: The New York City Department of Health and Mental Hygiene (DOHMH) issues a Food Service Establishment Permit to restaurants, food trucks, and cafes. For mobile food vendors, a license is also required for carts and trucks.
- Builders and Remodelers: The DCWP issues licenses to those who work in the home improvement industry.
- Services Provided by Professionals: Depending on the state, you may be required to get a license to practice law, real estate, or accountancy.
Tip:
Do your homework on the many licenses needed for your business type before you launch. To determine which permissions and licenses are necessary for your company, using the NYC Business Express tool.
2. Acquire an Authorization to Sell Sales Tax Certificate
The New York State Department of Taxation and Finance requires all businesses to apply for a Sales Tax Certificate of Authority if they sell goods or provide taxable services. With this certificate in hand, you can begin collecting sales tax from your clients, and then you can submit the money to the state.
Tip:
To begin collecting sales tax, you must first apply for a sales tax certificate, so be sure to do it early. You can fill out the application online, and it might take up to twenty days for processing.
3. Make Sure You Meet All Location and Zoning Criteria
The location of some types of enterprises are heavily regulated by New York City’s zoning laws. Make sure the region is zoned for your type of business before signing a lease or setting up your facility.
New York City’s Zoning Resolution tool can help you determine whether your proposed business location complies with zoning regulations.
Verify that the Certificate of Occupancy for your commercial space is current and appropriate for your company’s operations.
Tip:
For any questions regarding the zoning regulations for your business location, it is recommended to contact either the NYC Department of City Planning or a zoning attorney.
4. Get All Required Health and Safety Badges
You are obligated to adhere to the health and safety regulations imposed by the DOHMH if your enterprise deals with food, drink, or medical services. Usually, this entails:
Businesses that deal with food must complete a food safety course.
Checks for cleanliness and sanitation regulations are conducted on a regular basis to guarantee compliance.
Tip:
In order to stay out of trouble during health inspections, make sure everything is clean and safe.
5. Remember to Consider Insurance Needs
Certain insurance policies are mandatory for many New York City firms. Common forms of insurance for businesses include:
Your company can avoid legal trouble in the event of an accident, injury, or damage to property by purchasing general liability insurance.
Employers are obligated to carry workers’ compensation insurance in order to cover any accidents or illnesses that may occur on the job.
Certain professionals, such as doctors, lawyers, or accountants, are required by law to get professional liability insurance in order to safeguard themselves from allegations of carelessness.
Tip:
Verify that your company’s insurance policy is tailored to its specific needs. For advice on which policies might be best for your company, get in touch with a qualified insurance broker.
6. Get the Right Sign Permits
The New York City Department of Buildings (DOB) can issue you a sign permit if you intend to display commercial advertising or signs outside your establishment. That way, you know your signs are up to code in terms of size, placement, and security.
Tip:
To minimize any delays in having your sign approved, it is recommended that you consult with the NYC Department of Buildings early on.
7. Monitor When Permits and Licenses Are Up for Renewal
The city of New York requires the renewal of numerous licenses and permits on a regular basis, usually every year or two. If you fail to renew your license, your business may be subject to fines, penalties, or even suspension.
Make sure you remember when each of your licenses and permits are up for renewal.
Corporations and limited liability companies in New York are required to submit annual reports to the state department.
Tip:
For prompt renewals, set up calendar alerts or reminders. To keep tabs on due dates, you might utilize software for managing your company.
8. Get Assistance from NYC Business Resources
When it comes to licensing, permits, and general company planning, small business owners in New York City have access to a number of helpful resources:
Free classes, grants, and advice are available through the New York City Department of Small Business Services (SBS).
Licenses, permits, and other necessary business paperwork can be easily found with the help of NYC Business Express, an online resource.
New York City-based nonprofit SCORE offers free coaching to startups and small business owners.
Tip:
Make the most of these no-cost tools to simplify licensing and set your company up for success.
9. Get Ready for When People Come to Survey You
The New York City Department of Health and Mental Hygiene (DOHMH) inspects restaurants on a regular basis, while the New York City Fire Department (FDNY) examines companies that handle hazardous products. The state may also conduct audits of businesses about sales tax reporting and collection.
Tip:
Keeping meticulous records of all company dealings, licenses, and compliance paperwork will make any audit or inspection go off without a hitch.
10. If necessary, seek professional assistance
In particular, first-time company owners may find the licensing process to be daunting. Consult an expert, like a business lawyer, accountant, or licensing consultant, if you need help understanding the regulations and paperwork.
Tip:
Although it may be expensive at first, hiring a professional can prevent you from making expensive mistakes, dealing with legal concerns, or experiencing delays in launching your firm.
In summary
Every small business in New York City needs to know what licenses and permissions they need and how to get them. To stay out of trouble with the law, pay your penalties, and keep your business running smoothly, make sure you follow these licensing rules and observe all local regulations. Make the most of the city’s business resources by keeping yourself informed, planning ahead, and utilizing them to your advantage.
