An online business is no different from any other business when it comes to licenses and permits.  Depending on the type of business you conduct, online or offline, you may need certain permits and licenses from three different authorities: the Federal Government, your State Government or your local authorities.

Federal Government permits and licenses are rarely necessary, except for certain types of rather dangerous activities, like drug manufacturing, selling of alcohol and firearms and so forth.

On the state level, as a New York business, you can find out what kind of licenses and permits are required by going to New York's Online Permit Assistance and Licensing web portal, short OPAL.

On OPAL, among the many choices of different business types, there is one type of business labeled "Online Retail Business."

If you go through the questionnaire, you will find out that you need to obtain a Certificate of Authority to Collect Sales Tax.  OPAL also advises that the sale of certain goods may require additional licenses and suggests that you contact GORR (New York State Governor's Office of Regulatory Reform) at 800-342-3464.

On the local level, as a New York City business, you can find information about permits and licenses here.  As far as I can see, they do not require any particular license for the sale of new goods on the internet.

With respect to using your home as a home office in New York City, I wouldn't worry about any permit or license, as long as your business doesn't disturb your neighbors.  But if in doubt, you should consult the New York City Zoning Code, or your town's zoning code, if you don't life in NYC.

By the way, don't hesitate to call all State and City agencies and ask your way through to somebody who seems knowledgeable and get all the information you need.  While there is no guarantee that people give you correct information (is there ever?), these government employees are being paid to help you (for free) and are often very helpful.

Then there is other paperwork that a new business may need to file, even though I wouldn't call that a permit or a license.

For example, corporations and multi-member LLCs must apply for a federal identification number

In addition, any business that conducts its business under a name other than the name of the individual owner, must apply for a "fictitious name certificate" or "business certificate."  In other words, Daphne Danzig selling widgets as Daphne Danzig does not have to get a business certificate.  But Daphne Danzig selling widgets under the name "Ace Widgets" needs to apply for a certificate.  If Daphne Danzig is in New York City, she can get her certificate at the county clerk, 60 Centre Street, for more info see here.  For an entire post on business certificates, see my earlier post on "doing business as".

**This post is for informational purposes only and does not constitute legal advice**

40 replies
  1. Debbie
    Debbie says:

    Need a business license? I just chanced upon a great website for all your business licenses, tax registration forms and all kinds of permits. Thousands of businesses use their services every day to be in compliance. They cover every business license, permit, and tax registration from a California Business License to a Florida Business License and all-states in-between. I really think that you should check it out! Their website is http://www.businesslicenses.com
    Good Luck!

    Reply
  2. Robert Harris
    Robert Harris says:

    Need all licenses and tax id numbers to start your business? Here is a great website for all your business licenses, tax registration forms and all permits. This site has served more than 100,000 satisfied customers. They can get you a California Business License or Florida Business License or for any other state. Check out their website at http://www.businessnameusa.com

    Reply
  3. Laurie Neumann
    Laurie Neumann says:

    I am also a New York resident, and have found your post helpful.
    I was under the impression also that NY was going to have to start charging for digital products, but according to my tax man, if it’s completely digital, no tax required.
    Thank you!

    Reply
  4. utah personal injury
    utah personal injury says:

    Nice post. I think Every state, county, and municipality has a different set of rules and regulations regarding licensing. There is simply no way to catalog all the requirements for a specific type of business or location.

    Reply
  5. Columbus Ohio Website Design
    Columbus Ohio Website Design says:

    I am glad you stressed that just because it is a home based business, the owner needs to treat it exactly as any other responsible small business owner would treat their successful endeavor.
    And don’t forget to Incorporate! That is why we provide that as a free service. The responsible small business owner needs to limit their own personal liability, should there be a few bumps along the way!

    Reply
  6. nyfinances
    nyfinances says:

    You don’t need so many finances to start an online business in New York, compared to a small business or even an international one. And it’s very profitable, as well.

    Reply
  7. Fortune Ezeoha
    Fortune Ezeoha says:

    Very nice post, far much better than most that I have read. I like the way you mentioned the facts of the matter and the sequence that you followed because that is where it all is.

    Reply
  8. MarieReese31
    MarieReese31 says:

    Lots of specialists tell that personal loans aid people to live their own way, because they are able to feel free to buy needed goods. Furthermore, some banks present credit loan for young and old people.

    Reply
  9. TuckerMinerva23
    TuckerMinerva23 says:

    When you’re in not good state and have no money to get out from that point, you will require to receive the personal loans. Because that would help you definitely. I take student loan every year and feel myself good just because of that.

    Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *