What constitutes "doing business" in New York?

The phrase generally refers to activities that would require a business to file or obtain approval to legally do business in the state of New York. Typically, a definition is very broad and encompasses most activities that create a continuing presence or economic activity within New York. Understanding what constitutes "doing business" could spare a company certain penalties due to noncompliance.

Key factors that usually constitute "doing business" in New York include:

1. Physical Presence: The existence of some form of physical presence in New York, such as an office, warehouse, or retail space, indicates a concrete presence of doing business. If a person leases or owns property in New York, the need to register usually arises. Thus, employee presence may have one or more of the following meanings:
2. Employee Presence: Having regular employees working within New York-including at a home office, shared workspace, or even at a company facility-also constitutes having a business presence. If there is manpower present in the state, then that clearly means an economic footprint exists, and therefore the business needs to register.
3. Regular Business Transactions: It is generally viewed to include conducting regular, continuous business activities in New York, such as selling products or entering into service contracts with New York residents. It may be required even without physically having a location if there are repeated business activities targeted specifically at the residents of New York.
4. Sales and Revenue Generation: Businesses that receive income on a regular basis from customers located in New York State would also be thought to be doing business in the state. This would more likely pertain to any business that directly advertises products or services to, or sells its products or delivers its services directly to, New York State customers.
5. Tax Thresholds: For example, listed business activities include reaching a threshold of sales, revenue, or payroll that is connected to New York. If such activities were operating under nexus rules meaning the economic relationship to this state business is obligated to collect and pay state taxes.
6. Other Substantial Operations: Frequent or extensive activities in the state that are not directly related to sales may also create a nexus, such as holding company meetings in New York, negotiating New York contracts, or extending New York client relations. Activities conducted with the substantial regular, organized course of operations within the state, through agents or representatives, may be subject to formal registration.

Any business enterprises that are not sure of these requirements may contact the Department of State in New York or consult with an attorney. This registration ensures that there are no penalties for unregistered operations, especially if New York taxes are applicable.