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:
- Select Your Business Structure: Consider New York’s tax environment for different entity types.
- Register Your Business: File formation documents with the New York Department of State.
- Register for Tax Accounts: Register with the Department of Taxation and Finance for sales tax and withholding.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- 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.
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:
- Select Your Business Structure: Consider New York’s tax environment for different entity types.
- Register Your Business: File formation documents with the New York Department of State.
- Register for Tax Accounts: Register with the Department of Taxation and Finance for sales tax and withholding.
- Obtain Required Licenses: Research and secure necessary state and local business licenses.
- 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.
