By: Business in New York City

Photo by benjamin lehman on Unsplash

The final information is subject to the latest release from the following official websites:

1. Create a Business Plan

2. Register Your Business

  • Choose a legal structure. This will determine who will own and be legally responsible for your business and affects how you file your taxes. GET FREE ADVICE ON LEGAL STRUCTURES
  • Register your business. Corporations, Limited Liability Companies, and Limited Partnerships register with New York State. General Partnerships and Sole Proprietorships register with the appropriate County Clerk. GET FREE LEGAL ADVICE
  • Apply for an Employer Identification Number (EIN), also known as a Federal Tax ID Number. If you are a sole proprietor, you may be able to use your Social Security Number instead. LEARN MORE ABOUT EIN
  • Register as a Sales Tax Vendor with the NYS Department of Taxation and Finance in order to sell products and services. Apply early to avoid delays receiving other permits. LEARN MORE ABOUT THE SALES TAX VENDOR CERTIFICATE
  • Research required insurance such as workers’ compensation, liability, and disability insurance. Some are needed for permits and licenses and protect you from loss, fines, and lawsuits.
  • Get a Home Improvement Contractor License from the NYC Department of Consumer Affairs if your business will construct, repair, or remodel residential properties. LEARN MORE ABOUT THE HOME IMPROVEMENT CONTRACTOR LICENSE
  • Industries that discharge 25,000 gallons or more of process water per day are required to have an Industrial Wastewater Discharge Permit, and must initially submit a Baseline Monitoring Report to the NYC Department of Environmental Protection. LEARN MORE ABOUT THE PERMIT
  • Select businesses, usually in the construction industry, may need to submit a Wastewater Quality Control Application if they need to temporarily discharge groundwater to a sanitary or combined sewer. LEARN MORE ABOUT THE WASTEWATER QUALITY CONTROL APPLICATION
  • Get a Secondhand Dealer General License from the NYC Department of Consumer Affairs if your business will buy or sell used goods. LEARN MORE ABOUT THE SECONDHAND DEALER GENERAL LICENSE

3. Finance Your Business

  • Determine your financing needs. To start your business, you will need money or capital to purchase equipment and run your operations. Increase your chances of getting financing for your business.
  • Understand your insurance needs, such as workers’ compensation, liability, and disability insurance. Some are needed for permits and licenses and protect you from loss, fines, and lawsuits. Managing risk is an essential part of your business. LEARN MORE ABOUT INSURANCE
  • Identify incentive programs. Your business can benefit from programs that allow you to lower your cost of doing business. SBS can help you identify and access energy cost savings, tax credits, and other incentives. LEARN MORE ABOUT INCENTIVES

4. Find, Plan, and Build Out Your Space

  • Find a location zoned for your business, and at the legally required distance from a school or place of worship if you plan to serve alcohol. Your business location and the opinion of the local Community Board will be reviewed for your liquor license application. LEARN MORE ABOUT ZONING REQUIREMENTS
  • Learn more about zoning in your neighborhood with the Department of City Planning’s ZoLa map. USE THE ZOLA MAP
  • Learn about facilities and program sites in your prospective neighborhood that might impact your business on the Department of City Planning’s Facilities Explorer. USE THE FACILITIES EXPLORER
  • Get help understanding and signing your lease. Before signing, talk to a lawyer to make sure the timing is right, the terms are legal, and the agreement is good for you. GET FREE COMMERCIAL LEASE ASSISTANCE THROUGH SBS
  • Review your building plans for major and minor construction within your space. The NYC Department of Small Business Services (SBS) offers free plan examinations, and experienced client managers can help you navigate the process. GET HELP WITH PLAN EXAMINATIONS
  • Plan your food establishment design. Select and engage architect(s), general contractor(s), and/or interior and kitchen designers to plan any changes and ensure that your space complies with building and fire codes. Make sure your architect and/or contractor is licensed.
  • Confirm there is an existing Certificate of Occupancy (C of O) and that it allows for your proposed business operation in the space. An amended C of O may be required if there is a change in use, egress, or type of occupancy. For buildings built or altered prior to 1938 when a C of O was not required at that time, a Letter of No Objection may be issued to confirm the legal use of the building. LEARN MORE ABOUT THE CERTIFICATE OF OCCUPANCY
  • Professional Certification or “Pro-Cert” could save you weeks in receiving permits. Pro-Cert allows a professional to self-certify projects without initial review from the NYC Department of Buildings (DOB). LEARN MORE ABOUT PRO-CERT
  • Digitally plan submissions and review save time. Have your professionals use the NYC Development Hub, including for Pro-Cert. VISIT THE NYC DEVELOPMENT HUB
  • Changes to a landmarked property or building in a historic district must be approved by the NYC Landmarks Preservation Commission (LPC) before work can begin. LPC has a Business Express Service that serves as a one-stop shop for business owners in landmark buildings, making it easier for them to get their permits. LEARN MORE ABOUT WORK ON LANDMARKED PROPERTIES
  • If your location will host events where 75 people or more will gather, you will need a Place of Assembly Permit. LEARN MORE ABOUT THE PLACE OF ASSEMBLY PERMIT
  • Property owners must install an approved backflow prevention device on every water service pipe that has a connection between the drinking water supply and a potential source of contamination.
  • Limit air pollution. If you release fumes into the air, you are subject to the New York City Air Pollution Control Code (also known as the “Air Code”). LEARN ABOUT THE AIR CODE
  • Businesses that operate equipment or engage in activities regulated by the New York City Air Pollution Control Code (also known as the “Air Code”) may be required to obtain an Air Permit. LEARN ABOUT AIR PERMITS
  • Follow the Noise Code, limit construction noise, plan to limit noise from your establishment to avoid fines, and do not play music in front of your business to attract customers. You must create and post a noise mitigation plan to keep noises from bothering neighbors. Failure to do so can result in fines. LEARN MORE ABOUT THE NOISE CODE
  • Limit construction noise. You must create and post a noise mitigation plan to keep noises from bothering neighbors. Failure to do so can result in fines. LEARN ABOUT CONSTRUCTION NOISE REGULATIONS
  • Hire a private carting service and set up your space to comply with commercial recycling rules. LEARN MORE ABOUT HIRING A PRIVATE CARTER
  • Canopies must be approved by the property owners and the NYC Department of Transportation. LEARN MORE ABOUT CANOPY APPROVAL
  • Your construction should match what your business permits require. Make sure your licensed professional plans spaces and utilities connections to match the requirements of your business permits.
  • Consult your licensed professional about progress inspections and their cost, which may not be included in your project bid.
  • Accelerate the plan review process for new buildings or major alterations that change a building’s egress by directing your licensed professional to submit digital plans to the NYC Department of Buildings Hub. USE THE HUB
  • To protect public air quality, businesses must get a work permit and certificate to operate, and/or registration for boilers, water heaters and industrial equipment. Please note that boilers, water heaters, and multiple dryers (for laundromats) must be registered with DEP only if they have a rated input of greater than 350,000 but less than 4.2 million BTUs/hour. LEARN MORE ABOUT THE AIR CODE
  • If your business intends to demolish a building or structure, you must obtain a Registration for Demolition from the NYC Department of Environmental Protection ten days before starting demolition activities. LEARN MORE ABOUT THE REGISTRATION FOR DEMOLITION FORM

5. Prepare to Open

6. Hire a Team

7. Open and Operate

  • Display licenses and required posters.
  • Prepare and pay your taxes. LEARN ABOUT TAXES IN NYC
  • All vehicles may only idle as permitted or face fines. As a general rule of thumb, no person should allow the engine of a motor vehicle to idle for longer than three minutes while parking, unless it is an authorized emergency motor vehicle, or a vehicle using an engine to operate a loading device. The legal idling time is reduced to one minute if the vehicle is parked adjacent to a school facility. LEARN MORE ABOUT IDLING REGULATIONS
  • Watch for asbestos. A licensed asbestos investigator must determine if asbestos is present, and if so then a licensed abatement contractor must contain it and give notice to NYC Department of Environmental Protection before you can demolish or renovate the structure. LEARN MORE ABOUT ASBESTOS RULES AND REGULATIONS
  • Train your employees on sexual harassment prevention. You must do so under state law. LEARN MORE ABOUT SEXUAL HARASSMENT TRAINING

8. Avoid Violations

Buildings, Department of

Occupancy contrary to that allowed by the Certificate of Occupancy or Building Department records(Penalty: $400 – $25,000 fine)

Violation Type: Certificates and Records

How to Avoid the Violation:

  • Make sure the space (building or lot) you own or rent has a current Certificate of Occupancy on file with the Department of Buildings (DOB).
  • If you own or rent a space constructed before 1938, make sure your space has a Letter of No Objection from the DOB.
  • If you plan to change the use, egress, or occupancy of your space, make sure the property owner has filed for an amended Certificate of Occupancy.
  • Verify that your type of business is consistent with the use authorized by the Certificate of Occupancy.
  • Do not own/operate any business in a space where it is not authorized or in a zoning district where it is not allowed.

Additional Information:

Legal Basis: NYC Construction Code

Consumer and Worker Protection, Department of

Engaging in unfair trade practices(Penalty: $50 – $500 fine)

Violation Type: Consumer Protection

How to Avoid the Violation:

  • Make sure your sales ads are not false or misleading.

Additional Information:

Legal Basis: NYC Administrative Code §20-700

Failure to give a receipt or giving an incomplete receipt (Penalty: $50 – $500 fine)

Violation Type: Receipts and Refunds

How to Avoid the Violation:

  • Receipts must be given to customers for purchases over $20 and upon request for purchases between $5 and $20.
  • Make sure receipts are complete and correct. By law, your receipts must show:
    • Your business name and address and, if you are a licensee, you must add “Department of Consumer and Worker Protection” followed by your DCWP license number
    • The amount of money paid for each item
    • The total amount the customer paid, including a separate line for tax
    • The date of the purchase
    • The make and the model of any electronic purchase more than $100

Additional Information:

Legal Basis: Rules of the City of New York: Title 6 §5-32(c)

Failure to respond to Notice of Hearing issued by the Department of Consumer and Worker Protection (DCWP) (Penalty: Up to $500 fine)

Violation Type: Administrative Hearings

How to Avoid the Violation:

  • If a DCWP Inspector issues a violation during an inspection, you will be given a Notice of Hearing with the date and time that you need to meet with a Settlement Officer or you can contest the violation with an Administrative Law Judge at DCWP’s Adjudication Tribunal.
  • Not responding to a Notice of Hearing will result in additional violations and fines.

Additional Information:

Legal Basis: Rules of the City of New York: Title 6 §1-14

Failure to include Department of Consumer and Worker Protection (DCWP) license number on advertising and/or printed materials (Penalty: Up to $500 fine)

Violation Type: Licensing

How to Avoid the Violation:

  • All advertising and printed matter that is given to customers must have the DCWP license number(s) clearly printed on them and the license numbers must be clearly identified as DCWP license numbers. Example: business cards, flyers, receipts, etc.
  • If your business has more than one DCWP license, printed matter must have all DCWP license numbers.

Additional Information:

Legal Basis: Rules of the City of New York: Title 6 §1-05

Environmental Protection, Department of

Failure to adopt or implement a Noise Mitigation Plan at a construction site(Penalty: $875 – $2,625 fine)

Code: BN14Violation Type: Noise

How to Avoid the Violation:

  • To limit construction noise, the Noise Code mandates that all construction be conducted in accordance with noise mitigation plans that address the specific location, type of work, and timing of a project.
  • Contractors must develop a noise mitigation plan prior to the start of work.

Additional Information:

Legal Basis: NYC Administrative Code §24-220(a)

Causing or permitting unreasonable noise (Penalty: $350 – $1,350 fine)

Code: BN10, AN01, BN11, AN04Violation Type: Noise

How to Avoid the Violation:

  • To properly assess any possible violation of this section of the Noise Code, noise should be measured by meter readings in relation to all background noise that is referred to as “ambient noise”.
  • Generally noise levels after 10:00 PM and before 7:00 AM are regulated more strictly.

Additional Information:

Legal Basis: NYC Administrative Code §24-218(a)

Fire Department

Failure to obtain specified fire safety permit or submit copy of permit fee receipt(Penalty: $1,000 – $5,000 fine)

Code: VC3Violation Type: Permits

How to Avoid the Violation:

  • Make sure to obtain the proper permits.
  • Remember to renew the permits.
  • Be sure to save the receipt after paying the bill for the permit.

Additional Information:

Legal Basis: NYC Fire Code §105.6

Failure to provide or maintain fire safety records (Penalty: $1,000 – $5,000 fine)

Code: VC5Violation Type: Record Keeping

How to Avoid the Violation:

  • Keep your records up to date.
  • Make sure records are available for inspection.

Additional Information:

Legal Basis: NYC Fire Code §107.7

Failure to provide or maintain required signs, postings, notices, or instructions (Penalty: $1,000 – $5,000 fine)

Code: VC6Violation Type: Signs, Postings, Notices, and Instructions

How to Avoid the Violation:

  • Make sure all signs, postings, notices, and instructions are visible and available for inspection.
  • Keep your signs, postings, notices, and instructions up to date.

Additional Information:

Legal Basis: NYC Fire Code (Varies with materials on premises.)

Failure to provide and/or maintain required fire protection systems and/or prevent unnecessary or unwarranted alarms (Penalty: $1,000 – $5,000 fine)

Code: VC12Violation Type: Fire Protection Systems

How to Avoid the Violation:

  • Repair defective Fire Protection System(s).

Additional Information:

Legal Basis: NYC Fire Code §901.6

Failure to obtain specified Certificates of Fitness and Certificates of Qualification (Submit copy of certificate) (Penalty: $1,000 – $5,000 fine)

Code: VC17Violation Type: Certificate of Fitness, Certificate of Qualification

How to Avoid the Violation:

  • Ensure proper supervision of required, onsite fire-safety operations.

Additional Information:

Legal Basis: NYC Fire Code §113.1

Failure to conduct specified fire-safety inspection/test (Penalty: $1,000 – $5,000 fine)

Code: VC20Violation Type: Inspection and Testing

How to Avoid the Violation:

  • Have your fire suppression systems tested after installation.
  • Set up appointments to ensure the system is tested periodically.

Additional Information:

Legal Basis: NYC Fire Code §107.1

Sanitation, Department of

Improper use of DSNY litter basket(Penalty: $100 – $350 fine)

Code: AS20Violation Type: Recycling and Garbage

How to Avoid the Violation:

  • Sanitation litter baskets and the area around them may not be used for the disposal of household garbage, for the disposal of sweepings, or for the disposal of commercial garbage by storekeepers.
  • Litter baskets may not be used for the display of merchandise or wares.

Additional Information:

Legal Basis: NYC Administrative Code §16-120(e)

Improper disposal (Penalty: $100 – $200 fine)

Code: AS16Violation Type: Recycling and Garbage

How to Avoid the Violation:

  • A person may not use another person’s receptacles without permission, or place his/her garbage or recycling in front of a premises other than the building in which he/she resides or works.

Additional Information:

Legal Basis: NYC Administrative Code §16-120(a)

Loose rubbish (Penalty: $100 – $200 fine)

Code: AS19Violation Type: Recycling and Garbage

How to Avoid the Violation:

  • Light garbage or rubbish, which is likely to be blown or scattered about the street, shall be securely bundled, tied, or packaged before being placed out for collection.

Additional Information:

Legal Basis: NYC Administrative Code §16-120(d)

Failure to remove snow and ice from sidewalk (Penalty: $100 – $350 fine)

Code: AS21Violation Type: Streets and Sidewalks

How to Avoid the Violation:

  • Every owner, lessee, tenant, occupant, or other person having charge of any lot or building must clean snow and/or ice from the sidewalk after the snow has stopped falling.
  • Do not shovel snow into the street.
  • If the snow or ice becomes frozen so that it cannot be removed, snow-melting material such as sand or salt may be used.

Additional Information:

Legal Basis: NYC Administrative Code §16-123

Failure to keep designated recyclables separate from garbage (Penalty: $100 – $400 fine)

Code: R46, R47, R56Violation Type: Recycling and Garbage

How to Avoid the Violation:

  • Food and beverage establishments must recycle, at a minimum, all corrugated cardboard, bulk metal, metal cans, aluminum foil products, glass bottles and jars, and plastic bottles and jugs.
  • All other businesses must recycle, at a minimum, all bulk metal, corrugated cardboard, office paper, magazines, catalogs, phone books, newspaper, and textiles (if over 10% of your waste stream; for example, textile or garment industries).
  • Set out trash in black bags or covered bins and bundle recyclables in labeled covered bins or clear plastic bags.

Additional Information:

Legal Basis: Rules of the City of New York: Title 16 §1-10