How to start a consulting business in New York (2026)
Everything a new consulting business in New York needs in the first months: registration, licenses, taxes, insurance and the yearly deadlines, with official links.
1. Register your business
Most owners form an LLC with the New York Department of State, Division of Corporations. Once it's registered, find it here to claim a free website and see your exact dates.
2. Licenses
Most consulting doesn't need a license. Regulated fields do: accounting, engineering, law, investment advice and some health and building work. If yours is one, check the state board before taking clients.
Your city or county may also require a general business license or tax receipt.
3. Taxes
Get a free EIN from the IRS first. How. Register with New York before your first taxable sale. Register in New York
If you expect to owe $1,000 or more in federal tax for the year, you pay estimated tax four times a year.
New York's yearly report
A biennial statement is due every two years in your formation month. New LLCs must also publish a notice of formation within 120 days. The state fee is about $9.
Example: an LLC formed today would have its first one due Oct 31, 2028.
Your first-month checklist
-
Get your EIN
Free from the IRS, online in about 10 minutes. Banks, clients and payroll all ask for it. You never need to pay a service for it. How to get it free
-
Open a business bank account
Keeps the company's money separate from yours, which is what protects your LLC. See options
-
Get professional liability (E&O) insurance
Professional liability covers a client who says your advice cost them money; bigger clients often require it. See options
-
Check whether your field needs a license
Most consulting doesn't need a license. Regulated fields do: accounting, engineering, law, investment advice and some health and building work. If yours is one, check the state board before taking clients.
-
Set up booking and invoicing
Online booking and automatic invoices get you paid faster. See options
-
Set up bookkeeping
Track every sale and expense from day one so taxes take hours, not weeks. See options
What insurance costs
| Coverage | Median per month |
|---|---|
| General liability | $32 |
| Professional liability | $62 |
| Business owner's policy (BOP) | $61 |
| Workers' compensation | $44 |
| Cyber insurance | $81 |
Source: Insureon, Jun 2026. Your price depends on your work, location and history.
Other trades in New York
Sources: state agency sites linked above; annual report rules compiled from state sites (checked Oct 2026). Rules change, so confirm with the agency before filing.