What kind of permits and licenses are needed in NY in order to start an online business or a business from a post office box? It's a fortune telling business. Do you need a certificate of authority?
Intellectual Property Law Attorney
My understanding is that you would need a certificate of authority to do business in NY state and to collect sales tax under NY law. Your best bet for general purposes of limiting your own personal liability in connection with the business is to incorporate somewhere in NY (make your PPOB/HQ in a county where publishing costs are low, i.e., NOT New York County), and you will be assigned a EIN/State Tax ID #. It is the corporate entity, not you individually, who should purchase the domain name, in the company's name, limiting your liability from jump. Unfortunately, however, while there are many DIY sites available through/at www.nyc.gov, or www.nyc.gov/finance, my understanding is that because you will need a registered agent or address for service of process (the catch/tradeoff you swear to when you incorporate - NYS says you can do business and make money in this state, but (1) you must pay all applicable state and city taxes (such as NYS Sales tax of 8.875%), and (2) you must be amenable to service. It is the 2nd requirement that makes your post office box-based business impossible (or not plausible or legitimate), at least not in New York State. Look up SERVICO - they are an amazing vendor based in Albany and can walk you through each and every step of incorporating (among many other services they provide), and at a very affordable rate at that.
Hope this helps!
Attention: This e-mail originates from the law firm of CARTER PEK, P.C. ("The Firm"). All information appearing herein is protected and regarded as confidential, and is intended only for the use of the intended recipient(s) indicated above. Be advised that if the reader of this message is not in fact the intended recipient, notice is hereby given that any dissemination, distribution and/or copying of this message is strictly prohibited and punishable by law. If you have received this message in error, kindly reply to sender forthwith, and destroy and purge any and all copies of such message, whether in paper, digital or other media format. If you are not an existing client of The Firm, do not construe anything in this message to cause you to become a client of The Firm, unless it contains a specific statement to that effect, and refrain from disclosing any sensitive information in which you have an expectation of privacy and/or confidence if sending a reply. contains a specific statement to that effect, and be careful not to disclose any sensitive information in reply that you expect to hold in confidence. If you are the intended recipient hereof and are a client, co-counsel or retained expert of The Firm, be mindful to maintain its contents in strict confidence in order to preserve any and all privileges, including the attorney-client and/or work product privileges that may apply. Thank you. IRC 230 Disclosure: In accordance with Internal Revenue Code 230, The Firm hereby advises you that, unless otherwise expressly stated, any reference made to or discussion of a federal tax issue contained in this message, or in any attachment(s) hereto, are neither intended nor permitted to be used for purposes of avoiding federal tax penalties.
1 found this helpful
4 lawyers agree
Real Estate Attorney
In NY, permits and licenses can be broken down into State and Municipal categories. State licenses usually are related to either professional fields like: medicine, gambling, law, accounting etc. Additionally special state filings need to be made to create businesses like Partnerships, Limited Liability Companies, Limited Liability Partnerships, C-type Corporations or S-type Corporations. Each of these business has unique requirements for formation, need special registration with the IRS, and vary in cost of formation. However they are beneficial because they provide protection for business owners by immunizing the business owner's personal property from lawsuits brought against the business. It is highly advisable that these business entities be considered when forming a business.
Local or municipal filings can differ between cities and towns. Many concern taxes, zoning and general community ordinances. It is difficult to say what the local administrators will require. However you should contact the local town hall or executive body and they will answer the majority of your questions. Alternatively, ask the local Chamber of Commerce for information on the subject. Usually the members are small business owners and they are very helpful to prospective business owners.
If you are talking about a Sales Tax Certificate of Authority, then this usually applies for the sale of goods. Talk to a tax attorney or a accountant.
If you are talking about a NY Department of Education Certificate of Authority, then this usually applies for businesses that are practicing a professional service. Please check here: http://www.op.nysed.gov/prof/
If you are talking about a NY Department of State Certificate of Authority, then this usually applies to out of state businesses that are trying to conduct business within New York.
In forming a business, consulting an attorney is almost always a smart decision. Many business lawyers, including myself, offer free consultations and are usually reasonably priced. A lawyer will be able to tell you where filing forms can be found and to whom you need to submit the filings. Additionally they can help you get business insurance and attend to your real estate needs. You can always do it yourself, but if (and usually when) a legal issue arises, carefully and correctly prepared paperwork becomes priceless.
Good luck and please let me know if I can be of any assistance.
This answer is general information only. No legal advice is given in this answer. No attorney-client relationship is established based on this answer. To receive accurate legal advice, please follow up with an attorney.
4 lawyers agree