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Doing business in

New York

Navigate New York’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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Business Overview

New York offers a global business environment centered on financial services, media, technology, and healthcare. The state provides access to international markets, venture capital, and a diverse, skilled workforce. Innovation ecosystems in NYC and across the state support business development and growth.

Key Facts & Figures

Category Details
Capital Albany
Major Cities New York City, Buffalo, Rochester, Yonkers, Syracuse
State Sales Tax Rate 4%
Local Sales Tax Rate Up to 4.875% additional local taxes
Corporate Income Tax Progressive from 4.8% to 5.9%
Physical Nexus Threshold Physical presence through employees, offices, or representatives
Economic Nexus Threshold $500,000 in annual sales and 100 transactions

Did you know?

New York City’s financial services sector generates over $500 billion in economic output annually.

Setup & Compliance

New York business formation involves multiple state agencies with comprehensive compliance requirements.

Starting a Business in New York:

  1. Select Your Business Structure: Consider New York’s tax environment for different entity types.
  2. Register Your Business: File formation documents with the New York Department of State.
  3. Register for Tax Accounts: Register with the Department of Taxation and Finance for sales tax and withholding.
  4. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  5. Register as an Employer: Register with the Department of Labor if hiring employees.

Key Compliance Considerations:

  • Biennial Statements: LLCs and LLPs must file biennial statements with the Department of State.
  • Annual Reports: Corporations must file annual reports with the Department of State.
  • Sales Tax Collection: Collect and remit 4% state sales tax plus applicable local taxes.
  • Corporate Franchise Tax: Corporations pay franchise tax based on the highest of several calculated bases.
  • Publication Requirements: LLCs and LLPs must publish formation notices in two newspapers for six consecutive weeks.

Hiring & Payroll

New York has some of the most comprehensive worker protection laws in the nation.

New York Payroll Taxes:

  • Unemployment Insurance: Rates from 0.6% to 7.3% on first $11,600 of wages.
  • State Income Tax Withholding: Progressive rates required.
  • Mandatory Paid Family Leave insurance contribution.
  • Workers’ Compensation: Required for all employers.

New York Employment Laws:

  • Minimum Wage: Varies by region ($14.20 to $15.00 per hour).
  • Paid Sick Leave: Up to 40 hours annually for most employers.
  • Equal Pay for Equal Work protections.
  • Final Paycheck: Due immediately upon termination.
  • New York is not a right-to-work state.

State Incentives

New York provides comprehensive economic incentives to support business innovation and growth.

Key Business Incentives:

  • Excelsior Jobs Program: Tax credits for job creation and investment.
  • START-UP NY: Tax-free environment for new businesses.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • New York Small Business Development Center: Comprehensive business resources.
  • Minority and Women-Owned Business Certification Program.
  • Economic Transformation Program: Support for regions undergoing economic changes.

Regulatory Considerations

New York provides an extensive regulatory framework with sophisticated business guidelines.

Key Business Regulations:

  • Data Privacy: Advanced laws protecting consumer and business information.
  • Environmental Compliance: Comprehensive regulations for urban and industrial operations.
  • Professional Licensing: Mandatory for numerous professional services.

Additional Regulatory Areas:

  • Financial Services and Wall Street Compliance.
  • Media and Technology Industry Regulations.

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