How to Start a Business in New York
Everything you need to form your New York LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Forming an LLC in New York costs $200 to file Articles of Organization. Pass-through LLCs pay an annual filing fee from $25 to $4,500 based on income, while corporations pay a 6.5% franchise tax on business income. With over 20 million residents and the third-largest state economy, New York offers a large market for new businesses.
This guide covers every step of starting a business in New York, from choosing a business structure to obtaining required licenses and registrations.
Choosing Your New York Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most New York small businesses.
| Entity Type | Liability Protection | Taxation | New York Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $200 | $9 Biennial Statement | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $125 | $9 Biennial Statement | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your New York Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the New York Department of State, Division of Corporations, State Records and Uniform Commercial Code database. Reserve for $20 (60 days, extendable twice for 60 days each at $20 per extension).
- 3
Appoint a registered agent
Must have a physical New York street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization (Form DOS-1336) ($200) or Certificate of Incorporation (Form DOS-1239) ($125) with the New York Department of State, Division of Corporations, State Records and Uniform Commercial Code.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the New York State Department of Taxation and Finance. State sales tax rate: 4%.
- 7
Get required licenses and permits
New York issues no general statewide business license. Licensing is industry and location specific, and many businesses also need a local license from their city or county.
- 8
Register for New York taxes
Personal income tax: Progressive, with nine brackets. The Department of Taxation and Finance publishes the annual rate schedule and tax tables at tax.ny.gov.
How Much Does It Cost to Start a Business in New York?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (New York Department of State, Division of Corporations, State Records and Uniform Commercial Code) Required | $200 | Filings submitted through the Department of State E-Corp online system are generally reviewed the same business day,... |
| Corporation filing fee Required | $125 | If forming a corporation instead |
| Biennial Statement Required | $9 | Every two years, during the calendar month in which the original Articles of Organization were filed with the... |
| Name reservation | $20 | 60 days, extendable twice for 60 days each at $20 per extension |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | New York issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $200 to $509 |
Start a Specific Business in New York
New York Business Guides
- How to Start an LLC in New York
- How to Start a Corporation in New York
- Sole Proprietorship in New York: How to Start One
- New York Business License: What You Need and How to Get It
- New York Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in New York
- New York Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in New York
- New York Registered Agent: Requirements and How to Choose One
- Best LLC Services in New York
- New York Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in New York
Why Start a Business in New York?
- New York had an estimated 20,002,427 residents on July 1, 2025, making it the fourth most populous state in the country.
- New York ranks third among states by gross state product, behind only California and Texas.
- Forming an LLC costs $200 to file Articles of Organization, and forming a corporation costs $125 to file a Certificate of Incorporation with the Department of State.
- The recurring state filing obligation is a Biennial Statement costing $9 every two years for both LLCs and corporations.
- The state sales tax rate is 4%, with county and city rates added on top and an extra 0.375% inside the Metropolitan Commuter Transportation District.
- General business corporations pay a 6.5% franchise tax on business income, rising to 7.25% when the business income base exceeds $5 million, while qualified New York manufacturers pay 0%.
New York Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in New York?
- Filings submitted through the Department of State E-Corp online system are generally reviewed the same business day, with a filing receipt returned by email.
- What does it cost to start an LLC in New York in year one?
- An LLC costs $200 to form. You must publish notice in newspapers and file a Certificate of Publication for $50, plus newspaper costs. If you have New York source income, you file Form IT-204-LL with an annual fee from $25 to $4,500 based on income.
- Can a non-resident form an LLC in New York?
- Yes. You file Articles of Organization with the Department of State through the New York Business Express online system.
- What is the cheapest way to start a business in New York?
- A corporation costs $125 to form, while an LLC costs $200. However, corporations pay a 6.5% franchise tax on business income, and LLCs treated as pass-through entities pay an annual filing fee from $25 to $4,500 based on income.
- Is an operating agreement required for an LLC in New York?
- New York law requires filing Articles of Organization to form an LLC. An operating agreement is not required as a state filing requirement.