Starting a service business in New York comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in NY costs $200, ongoing reporting is $9 biennially, sales tax is 4% + local, and personal income tax runs 4%–10.9%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new New York owners off guard.
Most new registrations come out of New York, Buffalo, Rochester and the rest of New York — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | NY cost |
|---|---|
| LLC / entity filing (one-time) | $200 |
| Annual / periodic report | $9 biennially |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the NY Secretary of State and the New York State Department of Taxation and Finance.
Choose your structure and file with the NY Secretary of State ($200). Get your free EIN from the IRS the same day.
Register for New York sales tax with the New York State Department of Taxation and Finance, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Certificate of Authority (sales tax); Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$200
Annual Report
$9 biennially
Sales Tax
4% + local
Income Tax
4%–10.9%
Choose business structure
File with NY Department of State
Publish in two newspapers (LLC requirement)
Get EIN
Register for state taxes
Get local permits
Open business bank account
LLCs must publish formation notice in 2 newspapers — this can cost $500–$2,000+
NYC has additional taxes and requirements
Biennial report is only $9 — the cheapest part
The $200 filing fee is modest, but the required newspaper publication can cost $500–$2,000+.
Online LLC filings with the NY Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in New York and still invoice customers legally. An LLC ($200 to file, $9 biennially) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
New York sales tax is 4% + local. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the New York State Department of Taxation and Finance before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies NY tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.