Before you apply for your Home Improvement Contractor (HIC) license, you need a legal business structure. This guide walks you through building your business manually — and gives you faster alternatives like LegalZoom, RocketLawyer, and Tailor Brands for contractors who want to skip the admin work.

1. Choose Your Business Structure

Most NYC contractors pick one of two structures:

LLC (Most recommended)

• Protects your personal assets

• Easier to insure

• Looks more legitimate to homeowners

• Required if you want partners or employees later

Sole Proprietorship

• Cheap and fast

• Zero legal protection

• You personally absorb all liability

• Harder to get insurance

If you're building a real business, form an LLC. Sole prop is only acceptable for tiny side-jobs.

Learn about Business Structures
Read our Choosing a Business Structure guide to explore the different types of business structures.

2. Name Your Business

You need:

Legal Name

This is the official LLC name you form with New York State.

Optional: DBA (“Doing Business As”)

If you want to operate under a more marketable brand name, file a DBA.

Examples:

• Legal name: Parker & Olive LLC

• DBA: PARKER+OLIVE

Your DCWP license will list both.

3. Form Your Business (Manual Method)

Step 1: Form an LLC on the NY Department of State website

• File Articles of Organization

• Fee: ~$200

• Processing: Usually same day (online)

Step 2: Publish Your LLC (NY Publication Requirement)

NY requires new LLCs to publish notices in two newspapers.
Cost: $600–$1,600 depending on county.

Step 3: Get an EIN

This is your business’s federal tax ID.
Apply free at IRS.gov — instant approval.

Step 4: Create an Operating Agreement

Required for LLCs in NY.
You don’t file it — you just need to have it.

Step 5: Open a Business Bank Account

Banking options:

• For NYC walk-in: Chase, Citi, TD Bank, Dime

• Digital: Mercury (our recommended option)

• Bring: LLC formation docs + EIN + Operating Agreement

Learn about Business Banking
Read our Getting a Business Bank Account to learn more about business banking.

Step 6: Get Your Sales Tax Certificate of Authority

NY State requires this if you collect sales tax on repair work.
Apply through the NY Business Express portal.

Step 7: Maintain Compliance

• Update NY DOS when your business address changes

• File biennial statements

• Keep your insurance active

• Use DCWP-compliant contracts

4. Faster Alternatives

If you want to skip paperwork, these services bundle formation, EIN setup, Operating Agreement templates, registered agent services, and compliance reminders.

LegalZoom

Best for contractors who want hand-holding and customer support.

• LLC filing

• EIN

• Operating Agreement

• Registered agent service

• They also handle your publication requirement (extra fee)

RocketLawyer

Best for contractors who want access to unlimited legal document templates.

• LLC formation

• Lawyer-drafted contracts

• Legal Q&A included in their membership

• Good if you want help reviewing DCWP-required documents

Tailor Brands

Best for contractors who want branding + business formation in one place.

• LLC setup

• EIN

• Basic compliance tools

• Logo and brand toolkit

• Simple and beginner-friendly

These platforms cost more than DIY, but they remove friction and prevent common mistakes with filings and publication.

5. Business Addresses: What You Can Use

Your business can legally use:

• Your home address

• A commercial office

• A mailbox/virtual business address (must allow receiving official mail)

6. What You Need Before Applying for Your NYC HIC License

DCWP expects your business to be fully formed. Have these ready:

• LLC or sole proprietorship paperwork

• DBA (if applicable)

• EIN

• Business bank account

• Certificate of Authority (sales tax)

• General liability + workers’ comp (or exemption)

7. Which Path Should You Choose?

Here’s the blunt version:

If you want complete control and lowest cost → DIY.

Good for experienced business owners.

If you want minimal hassle → Tailor Brands.

Fastest, simplest, cheapest “done-for-you” experience.

If you want the most support → LegalZoom.

Great if you want someone to walk you through everything.

If you want legal templates + on-call attorneys → RocketLawyer.

Useful if you plan to have subcontractor agreements, partnership docs, etc.

Final Advice

Start with an LLC.
Get your EIN + bank account.
Set your business address.
Then move on to your HIC license paperwork.

Forming the business correctly makes every downstream DCWP requirement easier — especially insurance, contracts, escrow rules, and address consistency.