By: Business in New York City

Photo by Nathaniel Yeo 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 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
  • Get an Electronic and Home Appliance Service Dealer License from the NYC Department of Consumer Affairs if your business plans to repair or service electronic equipment or home appliances. LEARN MORE ABOUT THE LICENSE
  • Get a Dealer in Products for the Disabled License from the NYC Department of Consumer Affairs if your business will sell, rent, repair, or adjust any instrument or device designed for people with disabilities. LEARN MORE ABOUT THE DEALER IN PRODUCTS FOR THE DISABLED LICENSE
  • Get an Electronics Store License from the NYC Department of Consumer Affairs if your business will sell electronic goods. LEARN MORE ABOUT THE ELECTRONICS STORE 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
  • Oil and water separators are required at certain businesses where oily liquid waste is produced. LEARN MORE ABOUT OIL AND WATER SEPARATORS
  • 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
  • Limit air pollution. On-site dry cleaners must have a Certificate to Operate from the NYC Department of Environmental Protection. 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

  • Schedule your pre-operational inspections with the NYC Fire Department (FDNY). SCHEDULE PRE-OPERATIONAL INSPECTIONS
  • Avoid common violations and fines. SBS offers free compliance consultations that can save you time and money. GET HELP WITH LICENSES AND PERMITS
  • Learn about the Federal, State, and City requirements and the permits your business will need by using the STEP BY STEP TOOL.
  • Scales for weighing items for sale by weight must pass inspection before use. Schedule an inspection before you open. LEARN MORE ABOUT INSPECTIONS
  • Set-up your space to maximize recycling and avoid violations. Attend a NYC Department of Sanitation (DSNY) training and download or order educational materials. ATTEND A TRAINING
  • Business signs, if nailed or screwed into the building or if illuminated, must be approved by NYC Department of Buildings. LEARN MORE ABOUT SIGNS
  • The Department of Environmental Protection (DEP) has many permit and non-permit environmental compliance requirements. LEARN MORE ABOUT DEP REQUIREMENTS
  • Post applicable worker protection posters. Follow Federal as well as New York State requirements. DOWNLOAD POSTERS
  • Post prices, refund policy, and other required signs from the NYC Department of Consumer and Worker Protection. LEARN MORE ABOUT POSTING AND SIGNAGE REQUIREMENTS

6. Hire a Team

7. Open and Operate

  • Display licenses and required posters.
  • Give customers clear receipts. Show prices and print your business name and address on your invoices and receipts.
  • Prepare and pay your taxes. LEARN ABOUT TAXES IN NYC
  • Hazardous materials above threshold amounts must be registered under NYC Department of Environmental Protection’s Right-to-Know program. Many common materials such as paint, solvents, inks, pool chemicals, and cleaning products can have hazardous characteristics. LEARN MORE ABOUT RIGHT-TO-KNOW
  • 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

Failure to post a refund policy (Penalty: $50 – $500 fine)

Violation Type: Receipts and Refunds

How to Avoid the Violation:

  • Businesses should post their refund policy at each register, at the point of sale, or at each entrance.
  • Even if the policy is not to give refunds, a sign must be posted stating, “No Refunds.”

Additional Information:

Legal Basis:Rules of the City of New York: Title 6 §5-37

Failure to clearly mark prices for products (Penalty: $25 – $250 fine for each group of identical items)

Violation Type: Pricing

How to Avoid the Violation:

  • All items offered for sale must have a clearly visible price.
  • For most items, the price must be attached to the item or on a sign where the item is displayed.

Additional Information:

Legal Basis:NYC Administrative Code §20-708

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 label pre-packaged products (Penalty: $25 – $800 fine)

Violation Type: Weights and Measures

How to Avoid the Violation:

  • Packaged products must have a label with the name and address of the manufacturer, packer, or distributor.
  • Pre-packaged foods must have a label that includes all of the following:
    • Name of the product
    • Name and address of the manufacturer
    • Weight or quantity in the package
    • Expiration or sell-by date

Additional Information:

Legal Basis:New York State Weights & Measures Regulations 1 NYCRR Part 221.4

Environmental Protection, Department of

Failure to install a backflow prevention device (Penalty: $700 fine)

Code: AW51Violation Type: Water

How to Avoid the Violation:

  • Owners or managers of buildings are required to install devices that prevent contaminated water or chemicals from flowing back into the drinking water supply.
  • To determine whether or not your property requires a backflow prevention device, you must retain the services of a Licensed Professional Engineer (PE), Licensed Registered Architect (RA), Licensed Master Plumber (LMP), or request a property inspection from DEP.

Additional Information:

Legal Basis:Rules of the City of New York: Title 15 §20-04

Failure to submit an annual test report for a backflow prevention device (Penalty: $500 fine)

Code: AW52Violation Type: Water

How to Avoid the Violation:

  • You must schedule tests with a certified tester at least once a year and file appropriate forms with DEP.

Additional Information:

Legal Basis:Rules of the City of New York: Title 15 §20-04

Noise from a circulation device (e.g., air conditioner, HVAC, etc.) in excess of 42 decibels (Penalty: $560 – $1,680 fine)

Code: BN29Violation Type: Noise

How to Avoid the Violation:

  • To avoid unnecessary and disruptive noise, make sure circulation devices (e.g., air conditioners, HVACs, etc.) are well maintained.

Additional Information:

Legal Basis:NYC Administrative Code §24-227(a)

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)

Unreasonable noise from a sound reproduction device for commercial or business advertising purposes (Penalty: $700 – $2,100 fine)

Code: BN61, AN89Violation Type: Noise

How to Avoid the Violation:

  • It is unlawful to use any sound reproduction device such as speakers or a radio for commercial or business advertising purposes to attract attention to your merchandise or for any performance.
  • Business owners must not place speakers near or outside the doors or windows to attract customers into the premises, including playing such devices in the interior so they can be heard outside in the public way.

Additional Information:

Legal Basis:NYC Administrative Code §24-244(b)

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

Dirty sidewalk (Penalty: $100 – $300 fine)

Code: AS06Violation Type: Streets and Sidewalks

How to Avoid the Violation:

  • Residents and businesses are responsible for keeping the sidewalks and gutter areas next to their buildings clean. Sidewalks include areas like tree pits and grass strips; gutter areas extend 18 inches from the curb of the sidewalk into the street.

Additional Information:

Legal Basis:NYC Administrative Code §16-118(2)(a)

Dirty area (Penalty: $100 – $300 fine)

Code: AS6MViolation Type: Streets and Sidewalks

How to Avoid the Violation:

  • Residents and businesses are responsible for keeping areas like front yards, side yards, driveways, alleys, open storage areas, and parking lots clean.

Additional Information:

Legal Basis:NYC Administrative Code §16-118(2)(a)

Failure to clean 18 inches into the street (Penalty: $100 – $300 fine)

Code: AS26Violation Type: Streets and Sidewalks

How to Avoid the Violation:

  • Residents and businesses are responsible for keeping the sidewalks and gutter areas next to their buildings clean. Sidewalks include areas like tree pits and grass strips; gutter areas extend 18 inches from the curb of the sidewalk into the street.

Additional Information:

Legal Basis:NYC Administrative Code §16-118(2)(a)

Failure to post a private carter decal (Penalty: $100 fine)

Code: AS02Violation Type: Recycling and Garbage

How to Avoid the Violation:

  • Merchants and businesses must post a decal that clearly and legibly states the name of the private carter they have hired and the days and times the garbage is picked up. The NYC Department of Sanitation does not collect commercial waste.

Additional Information:

Legal Basis:NYC Administrative Code §16-116(b)

Sidewalk obstruction (Penalty: $100 – $300 fine)

Code: AS07Violation Type: Streets and Sidewalks

How to Avoid the Violation:

  • Keep sidewalks clear of anything that could obstruct pedestrian traffic, such as garbage, trash containers, merchandise, or A-frame signs. Note: There are a few exceptions.

Additional Information:

Legal Basis:NYC Administrative Code §16-118(2)(a)

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

Street obstruction (Penalty: $100 – $150 fine)

Code: AS23Violation Type: Streets and Sidewalks

How to Avoid the Violation:

  • It is illegal to place items like boxes, barrels, garbage containers, or movable property like ATMs on a public street. Construction containers are allowed with an appropriate permit.

Additional Information:

Legal Basis:NYC Administrative Code §16-122(b)

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