LaunchPath

Flagship channel-state reference guide

Start Facebook Marketplace in New York: full reference guide

Use this page when you want the complete dense version: all sections, all appendices, and the full official source directory in one scrollable reference surface.

Last verified: April 26, 2026 Reference mode Dense appendix

Built from reviewed public pages for New York, IRS, FinCEN, New York City, Facebook Marketplace. Use it as a first-pass guide, then verify the official links that match your setup.

How to use this page

Dense appendix modeFull source directory attachedLast verified April 26, 2026

This version favors completeness over pacing. Use it when you need the appendix, the dense source trail, or the full long-form reference in one place.

Best reading order

  1. Use the fast-answer and official-links sections first if you only need the main route and source trail.
  2. Open the entity, setup, tax, and local sections only where your exact launch path actually branches.
  3. Use the full source directory last as the appendix, not the starting point, unless you already know the exact agency task.
Fast answer appendix Official links first Full source directory
Back to the guided journey

Reference mode

Everything in one dense page

The guided journey is the easier starting point. This page keeps the full accordion guide and source appendix when you want the complete research-backed reference view.

Best when you need

  • The full section map in one scroll without the lighter journey framing.
  • The appendix and official-source directory preserved next to the answer sections.
  • A clearer audit trail before you print, compare, or cross-check another route.

Still better handled in the journey

  • First-pass reading when you want the shortest, safest beginner route.
  • Deciding what to do first before you need the full appendix.
  • Switching states or platforms quickly without reading the full dense version.
Reference map
Start here Fast answer If you want to open Facebook Marketplace in New York, you usually need to do five things in order: Everyone 5 steps

If you want to open Facebook Marketplace in New York, you usually need to do five things in order:

  1. Choose your setup: sole proprietorship vs single-member LLC.
  2. Decide whether you are really doing local meetup/direct sale, shipped checkout through Meta if eligible, or later off-Facebook direct sales, because the New York tax answer changes across those paths.
  3. Handle your New York name-filing and tax branch before launch, especially the county or borough business-certificate branch if needed and the Certificate of Authority branch if your facts require it.
  4. Verify local permit, zoning, and city-tax rules, especially if you will operate in New York City.
  5. Confirm that your Facebook account can actually use Marketplace, and only build around shipping or business-mode tools if your real account has them.

Practical first-launch recommendation

If you are casually selling a few low-risk items and want the lightest setup, sole proprietor can work.

If you intend to build a real resale business in New York, single-member LLC is usually the better long-term path.

Important platform note:

Public Meta help says Marketplace is available for adults with active Facebook accounts, must be used from the main profile rather than an additional profile, and is intended for consumers. The same help pages say businesses that list on Marketplace may be blocked and or have their listings removed. Treat that as real platform risk when deciding how much inventory and filing cost to commit on day one.

Avoid these first-launch mistakes

  • Treating a local pickup Facebook sale as if it were automatically a marketplace-provider tax sale.
  • Ignoring the conflict between New York's marketplace FAQ and TSB-A-24(52)S when planning a pure shipped-checkout-only theory.
  • Buying inventory tax free before you have actually secured the right New York registration path.

New York-specific friction

The tax answer changes based on whether the transaction is a direct local sale or a Meta-managed checkout sale.

  • The tax answer changes based on whether the transaction is a direct local sale or a Meta-managed checkout sale.
  • New York's public sources do not fully line up on the pure marketplace-only registration branch.
  • The ST-120 resale path is not automatic. It follows the Certificate of Authority.
  • County and borough name-filing mechanics vary.

New York City-specific friction

NYC adds a real city branch with UBT review and zoning questions.

  • NYC adds a real city branch with UBT review and zoning questions.
  • Public NYC home-business sources are not fully aligned on square-footage and staffing limits, so address-specific confirmation matters if you will store inventory or generate pickup traffic.
  • The borough county-clerk branch is separate from the city-tax branch.

Facebook Marketplace-specific friction

Public Meta help says Marketplace is intended for consumers, and business listings may be blocked.

  • Public Meta help says Marketplace is intended for consumers, and business listings may be blocked.
  • Shipping and checkout are not available to all users.
  • Some business-facing Marketplace features are available only to select or certain sellers.
  • The public fee and seller-protection rules mainly speak to onsite checkout, not to ordinary local cash or person-to-person deals.

Insurance reality

If you are selling physical goods, commercial general liability and product-liability coverage may still be sensible even for a small operator.

  • If you are selling physical goods, commercial general liability and product-liability coverage may still be sensible even for a small operator.
  • No public universal Facebook Marketplace liability-insurance threshold was identified in the Meta pages reviewed on April 26, 2026.
  • Shipping carriers, landlords, storage providers, or local event venues may still impose their own insurance requirements.
Back to top Next: Quick-start checklist
Checklist Quick-start checklist Use the research-backed checklist groups before you spend, before your first sale, and before launch goes live. Everyone 3 groups

Do these before you spend money

  • Pick your entity.
  • Pick your business name.
  • Decide whether you are starting with local pickup, local delivery, or shipping with checkout if your account is eligible.
  • Stay with low-risk physical goods you can inspect, photograph, and hand off or ship yourself.
  • Avoid prohibited or beginner-hostile items like services, animals, healthcare products, recalled products, alcohol, supplements, and obvious counterfeit-risk goods.
  • Make sure you can document sourcing and item condition.

Do these before your first sale

  • Form the business or file the county or borough business-certificate branch if needed.
  • Get an EIN from the IRS if applicable.
  • Open a dedicated business bank account.
  • Resolve whether your actual New York fact pattern is a marketplace-only shipped-checkout branch or a direct-sale branch.
  • If you want tax-free inventory purchasing, handle the Certificate of Authority and ST-120 resale path before you assume you have it.
  • Check local permits and home-business rules, especially the New York City UBT, borough county-clerk, and zoning branch if you will operate there.
  • Confirm your Facebook account can access Marketplace, and if you want shipping, confirm that seller verification, tax info, and payout setup are actually available to your account.

Do these before launch goes live

  • Build one low-risk listing first.
  • Choose either a safe meetup workflow or a shipping workflow you can actually support.
  • Keep local pickup and off-Facebook direct sales separate from any marketplace-only tax assumptions.
  • Re-check the current Meta help and legal pages for fees, chargebacks, and shipping rules before you price inventory.
Back to top Next: Official links you will use first
Choose your setup Entity choice Compare the sole-proprietor and single-member LLC paths before banking, tax setup, and platform onboarding. Everyone 2 options

Sole proprietor

Best for: Best if you want the cheapest and simplest start.

What it means

  • If you operate under your own personal legal name, New York does not require a Department of State formation filing just to be a sole proprietor.
  • If you use a business name different from your legal name, New York routes the business-certificate or assumed-name branch to the clerk of the county or counties in which the business is conducted.
  • In New York City, each borough has its own county clerk for that branch.
  • Business income generally runs through your personal tax return unless you later change tax treatment.
  • You do not get a liability shield.

Why someone chooses it

  • Faster launch
  • Lower up-front filing costs
  • Fewer entity-maintenance steps

Main downside: Personal liability

single-member LLC

Best for: Best if you want a more durable setup for a real resale business.

What it means

  • You form the LLC by filing Articles of Organization (DOS-1336-f) with the Department of State.
  • The baseline New York filing fee is $200.
  • Members must adopt a written operating agreement before filing, at filing, or within 90 days after filing.
  • Most New York LLCs must complete the publication branch and file a Certificate of Publication within 120 days.
  • New York LLCs also have a biennial statement, and the separate IT-204-LL filing-fee branch may apply if the entity has New York source activity.

Why someone chooses it

  • Liability protection
  • Cleaner setup for banking, bookkeeping, and repeat inventory buying
  • Better fit for recurring sales, hiring, and later channel expansion

Main downside: Higher setup friction and cost than a sole proprietorship, especially because of publication

Back to top Next: What to do in order
Main path What to do in order The full end-to-end setup path, kept in the same order as the researched guide. Everyone 15 steps

  1. Step 1: Choose a low-risk launch model

    Main guide step 1

    For a first launch, stay inside the safest lane:

    Why it matters: Meta-specific warning: Practical rule: If the item touches health, safety, children, regulated chemicals, heavy IP risk, or specialized compliance, slow down and do separate product research before buying inventory.

    • ordinary physical general merchandise
    • truthful condition descriptions
    • one or two low-risk listings first
    • no high-risk categories from food, supplements, cosmetics, medical claims, batteries-heavy hazmat, alcohol, children's products
    • Marketplace listings must comply with Meta's Commerce Policies and Community Standards.
    • Meta's current public Marketplace help says no services, no animals, no healthcare products, and no recalled products.

  2. Step 2: Choose your name and brand approach

    Main guide step 2

    You need to decide whether you are:

    Why it matters: Important:

    • operating under your own legal name,
    • using a county or borough business certificate,
    • selling casually through your existing profile,
    • using a more formal business backend behind the listings,
    • or trying to use any business account features only if Meta actually makes them available
    • Your Facebook profile or seller display name does not replace your New York legal-entity or business-certificate setup.
    • Meta's public help shows that some business on Marketplace features are only available to select or certain sellers, so do not build your launch plan around those features unless your own account has them.

  3. Step 3: Form the business

    Main guide step 3

    If you choose sole proprietor: If you use only your own legal name, there is generally no separate New York Department of State entity filing.

    • If you choose sole proprietor: If you use only your own legal name, there is generally no separate New York Department of State entity filing.
    • If you choose sole proprietor: If you use a trade name, file the business-certificate or assumed-name branch with the clerk of the county or counties where the business is conducted.
    • If you choose sole proprietor: In New York City, that means the actual borough county clerk.
    • If you choose sole proprietor: This does not replace New York tax registration, local permits, or Marketplace follow-up.
    • If you choose single-member LLC: Do this in order:
    • If you choose single-member LLC: Run a preliminary name-availability check and make sure the LLC name is distinguishable.
    • If you choose single-member LLC: File Articles of Organization (DOS-1336-f).
    • If you choose single-member LLC: Create the written operating agreement and recordkeeping setup.
    • If you choose single-member LLC: Start the publication branch immediately, because most New York LLCs must publish in two county-clerk-designated newspapers for six consecutive weeks and then file the Certificate of Publication.
    • If you choose single-member LLC: File a New York Certificate of Assumed Name (DOS-1338-f) as well if your public-facing name will differ from the LLC legal name.

  4. Step 4: Get your EIN

    Main guide step 4

    Use the IRS EIN application if applicable. Most LLCs need one. For many sole proprietors it is optional, but it is still useful for banking, tax registration, and keeping business records cleaner.

  5. Step 5: Open banking and bookkeeping

    Main guide step 5

    Do this right away:

    • Open a business checking account.
    • Use one account and one card for business only.
    • Save every invoice, shipping receipt, payment-platform record, refund record, and tax record.
    • Track each sale by transaction type: local pickup, local delivery, shipped checkout, or off-Facebook direct sale.

  6. Step 6: Resolve the New York marketplace-only, direct-sale, and resale branch before you act

    Main guide step 6

    This is the most important New York decision point in this pack.

    Why it matters: What New York officially says: Safe practical reading for Facebook Marketplace: Practical beginner takeaway:

    • New York says a marketplace provider generally exists when it offers the forum and collects payment from customers for the sellers.
    • New York also says a marketplace seller is not responsible for collecting sales tax on sales of tangible personal property facilitated by a marketplace provider if the provider gave the seller Form ST-150 or has the required public agreement language.
    • The same marketplace guidance says a home-based New York business selling solely through a marketplace provider that collects tax still needs a Certificate of Authority and periodic returns.
    • But TSB-A-24(52)S, dated November 12, 2024, reaches a narrower answer and says the marketplace seller would not be required to register for sales tax if it makes no New York sales other than those facilitated by the marketplace provider. The opinion is limited to the petitioner's facts, so it is a strong caution signal rather than a blanket statewide rewrite.
    • New York separately says you must have a Certificate of Authority at least 20 days before doing business that requires you to collect sales tax, or before issuing or accepting exemption certificates.
    • If you are using Facebook Marketplace for local meetup or local pickup and the buyer and seller are arranging payment directly, that does not cleanly fit the provider-collected branch. Treat that as the direct-sale branch.
    • Meta's public help on local Marketplace transactions also recommends cash or person-to-person payment methods, which reinforces that this branch is not the same as Meta-managed checkout.
    • If your account is eligible for shipping and checkout and Meta is collecting payment and transmitting payout, that looks much closer to the marketplace-provider branch.
    • If you later add off-Facebook invoice sales, website sales, or repeat direct pickup sales, that is a separate direct-sale branch again.
    • If you plan to do regular local pickup, door dropoff, cash, card, Venmo, or other direct-payment sales, treat the startup path as a direct-sale branch and handle New York registration early.
    • If you are truly trying to stay inside Meta-managed shipping and checkout only, the official New York sources do not fully line up. The marketplace FAQ and the November 12, 2024 advisory point in different directions, so keep that as a retained follow-up before you rely on a no-registration theory.
    • Because shipped checkout is not available to all users and local transactions are common on Facebook Marketplace, the safer beginner path is to plan around the direct-sale branch unless your exact facts later close the pure marketplace-only exception cleanly.

  7. Step 7: Handle the resale-certificate branch separately

    Main guide step 7

    If you want to buy inventory tax free for resale:

    Why it matters: Practical rule:

    • New York says you must have a Certificate of Authority before you issue or accept exemption certificates.
    • New York uses Form ST-120, Resale Certificate, for legitimate resale purchases.
    • The current public ST-120 is revised 1/26.
    • Do not assume that being on Facebook Marketplace alone gives you resale authority.
    • If you want regular wholesale or tax-free inventory purchasing, handle the New York registration path first.

  8. Step 8: Check local permits, county rules, and home-business limits

    Main guide step 8

    New York does not use one statewide local-business form for every county or city.

    Why it matters: Do this before operating: New York City branch: Important NYC home-business warning:

    • check the county or city where you will actually operate,
    • ask about home occupation, inventory storage, and customer or carrier traffic,
    • and do not assume New York City rules apply unless the address is actually in NYC
    • The NYC business-certificate page says a sole proprietor using a trade name needs a certificate from the county clerk, and each borough has its own county clerk.
    • NYC also adds an Unincorporated Business Tax review layer. The 2025 NYC-202 instructions say any individual or unincorporated entity carrying on a trade or business wholly or partly within New York City with more than $95,000 of total gross income from all business must file.
    • NYC zoning also matters for home-based activity, inventory, pickup traffic, and on-site help.
    • Public NYC home-business sources do not fully line up. The Department of Buildings illegal-home-use page still says a home occupation generally cannot exceed 25% of the residence, up to 500 square feet, and no employees may work on-site.
    • But the current Department of City Planning zoning-resolution definition of home occupation, last amended June 6, 2024, is broader.
    • Treat that branch as address-specific retained follow-up before you store visible inventory, create recurring pickups, or rely on your home as the operating base.

  9. Step 9: If you hire employees, handle payroll registrations and insurance

    Main guide step 9

    If you do not hire anyone yet, skip this for now.

    Why it matters: If you hire:

    • New York says you can register as an employer through New York Business Express using NYS-100.
    • New York says newly hired or rehired employees working in the state must be reported within 20 calendar days from the hiring date.
    • Workers' compensation coverage is mandatory for most New York employers with employees.
    • New York also generally requires disability and Paid Family Leave coverage once the coverage rules are triggered.

  10. Step 10: Confirm access to Facebook Marketplace before you build the plan around it

    Main guide step 10

    Have these ready:

    Why it matters: What Meta publicly says:

    • an active main Facebook account
    • age verification ability if requested
    • phone number and email
    • government-issued ID if shipping verification triggers
    • tax information if shipping verification triggers
    • bank or other payout details if your account is eligible for shipping checkout
    • your real legal name and business details if you are using a business backend
    • Marketplace is available in many countries for adults with active Facebook accounts and is available from the Facebook app for Android or iPhone.
    • Meta may restrict access if the account is new or inactive, if you are using an additional profile instead of your main profile, or if you violated platform policies.
    • Meta's public additional-profile help also says Marketplace is one of the features that is only available on the main profile, not on additional profiles.
    • Marketplace is intended for consumers, and businesses that list may be blocked and or have their listings removed.

  11. Step 11: Build the actual listing path your account supports

    Main guide step 11

    Base listing flow from Meta's public help:

    Why it matters: For local transaction listings: For shipping and checkout listings: Business-mode caveat: Practical rule: Do not promise yourself a structured business dashboard, universal business onboarding, or business-mode switching unless your actual account shows those features.

    • Meta's public safety help says local listings may show meetup preferences such as door pickup, door dropoff, or public meetup.
    • Meta's public help says selling with shipping and checkout is not available to all users.
    • Meta's shipping-performance page says this shipping feature is available on the Facebook app for iPhone and Android.
    • Meta's seller-verification help says acceptable proof-of-identity documents include a passport or passport card, driver's license, or state or government-issued ID, and that the name on the document must match the name registered on the Marketplace profile.
    • Meta's public help on switching between personal and business account on Marketplace says that feature is only available to select sellers right now.
    • Meta's public help on confirming your identity when selling as a business says that feature is only available to certain sellers.
    • Open Marketplace.
    • Create a new listing and choose Item for sale.
    • Add photos or video.
    • Enter the item information.
    • Continue and publish.

  12. Step 12: Understand fees, chargebacks, and payouts before you price anything

    Main guide step 12

    What the current public Meta legal page supports for onsite checkout:

    Why it matters: Payout reality: Tax-form reality: Return reality:

    • Meta says Individual Sellers pay a 5% selling fee per transaction, with a minimum fee of $0.40.
    • Meta says the fee is calculated on the entire amount of the transaction, including the sale price, any shipping fees, and applicable taxes.
    • Meta says a $20 chargeback fee can be deducted if the buyer's card issuer decides in the buyer's favor.
    • Meta says seller protection is currently only available in the U.S. and is limited to items covered by Purchase Protection with a sale price of $2,000 or less.
    • The same public policy layer ties Individual Seller protection to using a Meta-generated shipping label and shipping within the published shipping or handling window.
    • That means you should not treat local pickup, off-platform payment, or self-arranged person-to-person delivery as covered by the same public protection language.
    • Current public Meta help still points to PayPal, bank-account update articles, and older payout-help flows around shipping.
    • That means the exact payout rail for your account should be treated as account-specific and re-checked live before you rely on it.
    • Meta's public tax-form help says shipping sales may trigger 1099-K reporting through PayPal and that Meta may send 1099-MISC for certain reimbursements.
    • Meta's public returns help says returns and refunds for local pickup Marketplace purchases are not available from Facebook.
    • Keep that separate from any return, refund, or dispute path that applies to onsite checkout orders.

  13. Step 13: Complete the local or shipped operations branch

    Main guide step 13

    For local meetup or pickup:

    Why it matters: For shipping and checkout if your account is eligible: Meta's public shipping-performance page says: Meta's public seller-policy page adds another important checkout rule:

    • keep communication on Facebook where possible
    • use safe meetup habits
    • verify the item before final payment
    • mark listings as pending, sold, or available correctly
    • ship inside the promised handling window
    • use valid tracking
    • monitor shipping performance
    • cancellation rate should stay below 10%
    • missed handling rate is monitored
    • not meeting the cancellation-rate standard may result in a temporary loss of shipping on Marketplace
    • if an Individual Seller has not fulfilled an order within 3 business days from the date of purchase, the order will be automatically canceled by Meta

  14. Step 14: Confirm category eligibility before scaling

    Main guide step 14

    Before you scale, re-check the actual listing against Meta policy.

    Why it matters: Public Meta Marketplace help says:

    • products listed on Marketplace must comply with Commerce Policies and Community Standards
    • no services
    • no animals
    • no healthcare products
    • no recalled products
    • no listing that is not a real physical product for sale

  15. Step 15: Launch with a compliance-first operating routine

    Main guide step 15

    Once live, keep these habits:

    • separate local direct sales from any Meta checkout sales in your records
    • save invoices and item-condition evidence
    • keep tax reserves separate if you are in a direct-sale branch
    • reconcile fees, payouts, refunds, and chargebacks
    • re-check policy-sensitive listings before you relist or scale

Best practical order for the LLC launch path

  1. Pick the low-risk product lane and decide whether you are starting with local direct sales or a truly provider-collected shipped-checkout-only plan.
  2. Form the LLC with Articles of Organization (DOS-1336-f).
  3. Get the EIN.
  4. Open bank and bookkeeping.
  5. Start the New York publication branch immediately.
  6. Resolve the Certificate of Authority question before first sale, and definitely before issuing ST-120.
  7. Check county or NYC local rules if operating under a different name or from home.
  8. Complete the actual Facebook Marketplace account-access and feature-eligibility branch before you buy real inventory.
Back to top Next: New York tax stack
State filing and tax New York tax stack Keep the New York registration, tax, and maintenance rules together while you launch. Everyone 8 checks

1. EIN

A typical single-member LLC needs an EIN.

  • A typical single-member LLC needs an EIN.
  • A sole proprietor often needs one if hiring employees and may still want one for operations even when not strictly required.

2. New York sales tax, seller permit, or equivalent registration

New York uses New York Business Express for the sales-tax application path.

  • New York uses New York Business Express for the sales-tax application path.
  • The current registration materials point filers to Form DTF-17.1 and DTF-17-I.
  • The Tax Department says to apply for a Certificate of Authority at least 20 days before taxable sales, taxable services, or the use of exemption certificates.
  • The registration page also says every person who sells taxable tangible personal property, even from home or only once a year, must register before beginning business.

3. Marketplace or platform tax rule

Safe practical reading for this combo:

  • New York defines a marketplace provider around a forum that also collects payment from customers for the sellers.
  • A marketplace seller is not responsible for collecting New York sales tax on sales of tangible personal property facilitated by a marketplace provider if the provider gave the seller Form ST-150 or has the approved public agreement language.
  • A registered marketplace seller is still responsible for collecting tax on taxable transactions not facilitated by a marketplace provider and must report facilitated tangible-personal-property sales on periodic returns as gross sales and nontaxable sales.
  • New York's own FAQ also says a home-based New York business selling solely through a marketplace provider still needs to apply for a Certificate of Authority and file periodic returns.
  • But TSB-A-24(52)S, issued on November 12, 2024, says a marketplace seller would not be required to register for sales tax if it makes no New York sales other than those facilitated by the marketplace provider. The advisory is limited to its facts, so it should not be treated as a blanket replacement for the broader public FAQ.
  • Facebook Marketplace shipped checkout, if Meta is actually collecting payment and sending payout, looks closer to the marketplace-provider branch.
  • Facebook Marketplace local meetup and pickup listings, where the parties are arranging the transaction directly, do not cleanly fit that provider-collected branch.
  • Later off-Facebook website, invoice, or direct-message sales are also separate direct-sale activity.

4. Local meetup versus shipped-checkout treatment

This is the key Facebook Marketplace state-law split.

  • Local transactions are distinct from checkout orders.
  • Meta's public payment and responsibility pages push ordinary Marketplace local deals toward cash or person-to-person payment methods and describe them as transactions between the buyer and the seller.
  • Shipping and checkout are separate features that are not available to all users.
  • Marketplace-provider treatment depends on the provider collecting receipts from customers for the seller.
  • Sales of tangible personal property in New York that are not facilitated by a marketplace provider stay on the seller side.
  • Local meetup and local pickup do not make the item non-taxable. They mainly change the transaction flow.
  • For Facebook Marketplace, local pickup and local meetup should be treated as the more conservative direct-sale branch unless you confirm a different Tax Department answer for your exact facts.
  • Shipped checkout is the only branch in this pack that gets close to a true marketplace-only collection theory.

5. Resale purchases or exempt purchasing

New York uses Form ST-120 for resale.

  • New York uses Form ST-120 for resale.
  • The current public ST-120 is revised 1/26.
  • For the assumed New York-based founder in this pack, the practical route is to use ST-120 only after obtaining the Certificate of Authority.
  • Use it only for legitimate purchases for resale.

6. Entity tax treatment

New York personal income tax and corporate franchise tax follow the federal classification of LLCs and LLPs.

  • New York personal income tax and corporate franchise tax follow the federal classification of LLCs and LLPs.
  • A single-member LLC treated as disregarded for federal income-tax purposes is also disregarded for New York tax purposes.
  • If the single member is an individual, New York treats that LLC as a sole proprietorship for state tax purposes.
  • For New York City tax treatment, the state guidance tells readers to review the city business-tax pages separately.

7. Entity filing-fee or franchise-tax rule

Form IT-204-LL must be filed annually by every LLC that is disregarded for federal income-tax purposes and has income, gain, loss, or deduction from New York sources in the current tax year.

  • Form IT-204-LL must be filed annually by every LLC that is disregarded for federal income-tax purposes and has income, gain, loss, or deduction from New York sources in the current tax year.
  • For that disregarded-entity fact pattern, the filing fee is $25.
  • The form is due on or before the 15th day of the third month following the close of the tax year.
  • There is no extension of time to file Form IT-204-LL or pay the fee.
  • An LLC that elected to be treated as a corporation for federal income-tax purposes should not file IT-204-LL.

8. If the founder changes entity type later

New York says that if an existing sole proprietorship closes and becomes an LLC, the new LLC must apply for new registrations, licenses, and permits.

  • New York says that if an existing sole proprietorship closes and becomes an LLC, the new LLC must apply for new registrations, licenses, and permits.
  • Do not assume the old sole-proprietor tax or local-registration setup automatically carries over.
Back to top Next: Facebook Marketplace account and operations
Platform setup Facebook Marketplace account and operations Use this section for the Facebook Marketplace-specific account, plan, eligibility, and operations work. Everyone 5 steps

  1. Step 9: If you hire employees, handle payroll registrations and insurance

    Platform step 1

    If you do not hire anyone yet, skip this for now.

    Why it matters: If you hire:

    • New York says you can register as an employer through New York Business Express using NYS-100.
    • New York says newly hired or rehired employees working in the state must be reported within 20 calendar days from the hiring date.
    • Workers' compensation coverage is mandatory for most New York employers with employees.
    • New York also generally requires disability and Paid Family Leave coverage once the coverage rules are triggered.

  2. Step 10: Confirm access to Facebook Marketplace before you build the plan around it

    Platform step 2

    Have these ready:

    Why it matters: What Meta publicly says:

    • an active main Facebook account
    • age verification ability if requested
    • phone number and email
    • government-issued ID if shipping verification triggers
    • tax information if shipping verification triggers
    • bank or other payout details if your account is eligible for shipping checkout
    • your real legal name and business details if you are using a business backend
    • Marketplace is available in many countries for adults with active Facebook accounts and is available from the Facebook app for Android or iPhone.
    • Meta may restrict access if the account is new or inactive, if you are using an additional profile instead of your main profile, or if you violated platform policies.
    • Meta's public additional-profile help also says Marketplace is one of the features that is only available on the main profile, not on additional profiles.
    • Marketplace is intended for consumers, and businesses that list may be blocked and or have their listings removed.

  3. Step 11: Build the actual listing path your account supports

    Platform step 3

    Base listing flow from Meta's public help:

    Why it matters: For local transaction listings: For shipping and checkout listings: Business-mode caveat: Practical rule: Do not promise yourself a structured business dashboard, universal business onboarding, or business-mode switching unless your actual account shows those features.

    • Meta's public safety help says local listings may show meetup preferences such as door pickup, door dropoff, or public meetup.
    • Meta's public help says selling with shipping and checkout is not available to all users.
    • Meta's shipping-performance page says this shipping feature is available on the Facebook app for iPhone and Android.
    • Meta's seller-verification help says acceptable proof-of-identity documents include a passport or passport card, driver's license, or state or government-issued ID, and that the name on the document must match the name registered on the Marketplace profile.
    • Meta's public help on switching between personal and business account on Marketplace says that feature is only available to select sellers right now.
    • Meta's public help on confirming your identity when selling as a business says that feature is only available to certain sellers.
    • Open Marketplace.
    • Create a new listing and choose Item for sale.
    • Add photos or video.
    • Enter the item information.
    • Continue and publish.

  4. Step 12: Understand fees, chargebacks, and payouts before you price anything

    Platform step 4

    What the current public Meta legal page supports for onsite checkout:

    Why it matters: Payout reality: Tax-form reality: Return reality:

    • Meta says Individual Sellers pay a 5% selling fee per transaction, with a minimum fee of $0.40.
    • Meta says the fee is calculated on the entire amount of the transaction, including the sale price, any shipping fees, and applicable taxes.
    • Meta says a $20 chargeback fee can be deducted if the buyer's card issuer decides in the buyer's favor.
    • Meta says seller protection is currently only available in the U.S. and is limited to items covered by Purchase Protection with a sale price of $2,000 or less.
    • The same public policy layer ties Individual Seller protection to using a Meta-generated shipping label and shipping within the published shipping or handling window.
    • That means you should not treat local pickup, off-platform payment, or self-arranged person-to-person delivery as covered by the same public protection language.
    • Current public Meta help still points to PayPal, bank-account update articles, and older payout-help flows around shipping.
    • That means the exact payout rail for your account should be treated as account-specific and re-checked live before you rely on it.
    • Meta's public tax-form help says shipping sales may trigger 1099-K reporting through PayPal and that Meta may send 1099-MISC for certain reimbursements.
    • Meta's public returns help says returns and refunds for local pickup Marketplace purchases are not available from Facebook.
    • Keep that separate from any return, refund, or dispute path that applies to onsite checkout orders.

  5. Step 13: Complete the local or shipped operations branch

    Platform step 5

    For local meetup or pickup:

    Why it matters: For shipping and checkout if your account is eligible: Meta's public shipping-performance page says: Meta's public seller-policy page adds another important checkout rule:

    • keep communication on Facebook where possible
    • use safe meetup habits
    • verify the item before final payment
    • mark listings as pending, sold, or available correctly
    • ship inside the promised handling window
    • use valid tracking
    • monitor shipping performance
    • cancellation rate should stay below 10%
    • missed handling rate is monitored
    • not meeting the cancellation-rate standard may result in a temporary loss of shipping on Marketplace
    • if an Individual Seller has not fulfilled an order within 3 business days from the date of purchase, the order will be automatically canceled by Meta
Back to top Next: Local permits and New York City branch
Local branch Local permits and New York City branch These local and city checks can still change the answer even after the state and platform path is clear. Location-specific 2 branches

Local permits and location checks

New York pushes some business-permit questions down to counties and municipalities.

  • New York pushes some business-permit questions down to counties and municipalities.
  • For any place where the business will operate:
  • check New York Business Express,
  • contact the county clerk,
  • contact the city, town, or village office,
  • ask zoning or building offices if the business will operate from home or store inventory.
  • Typical local risk areas:
  • business-certificate filing
  • home occupation restrictions
  • zoning for storage
  • truck or carrier activity at a residence
  • fire-code limits

New York City Appendix

If the business operates in New York City, add one more review layer.

  • If the business operates in New York City, add one more review layer.
  • The city business-certificate page says sole proprietors using a trade name need the borough county-clerk filing.
  • The city UBT and NYC-202 materials say unincorporated businesses carried on wholly or partly in NYC may have a city business-tax filing branch once total gross income from all business exceeds $95,000.
  • Public city sources also show a live zoning and home-occupation branch.
  • Important city nuance:
  • The DOB illegal-home-use page still gives a stricter general summary for home occupations.
  • The current zoning-resolution text, last amended June 6, 2024, is broader.
  • Because those public city sources are not perfectly aligned, treat the exact home-business limits for residential inventory, pickups, staffing, and floor area as an address-specific retained follow-up before you rely on a home-based NYC launch.
  • and do not assume New York City rules apply unless the address is actually in NYC
  • Treat that branch as address-specific retained follow-up before you store visible inventory, create recurring pickups, or rely on your home as the operating base.
Back to top Next: Employees and insurance
Optional branch Employees and insurance Use this branch if you plan to hire or need the insurance follow-up that comes with scaling. Only if hiring or scaling 5 branches

1. Employer registration

New business employers can register for unemployment insurance, withholding, and wage reporting through New York Business Express or Form NYS-100.

  • New business employers can register for unemployment insurance, withholding, and wage reporting through New York Business Express or Form NYS-100.
  • New York's hiring page also says newly hired or rehired employees who will work in New York State must be reported within 20 calendar days from the hiring date.

2. Workers' compensation

Virtually all employers in New York State must provide workers' compensation coverage for their employees.

  • Virtually all employers in New York State must provide workers' compensation coverage for their employees.
  • Public WCB insurance guidance says workers' compensation insurance is mandatory for most employers of one or more employees.
  • For-profit sole proprietors, partnerships, LLCs, and LLPs without employees do not have to buy coverage for themselves, but they may elect it voluntarily.
  • Workers' compensation coverage is mandatory for most New York employers with employees.

3. Disability, paid leave, or similar coverage

Virtually all employers in New York State must provide disability and Paid Family Leave benefits coverage for their employees.

  • Virtually all employers in New York State must provide disability and Paid Family Leave benefits coverage for their employees.
  • A covered-employer branch under the Disability Benefits Law generally starts after the employer has had one or more employees on each of at least 30 days in a calendar year, after the expiration of four weeks following the 30th day of that employment.
  • Paid Family Leave coverage is typically a rider on the disability benefits policy.
  • New York also generally requires disability and Paid Family Leave coverage once the coverage rules are triggered.

4. Exemption certificate if applicable

CE-200 is only for a government license, permit, or contract situation where the applicant is not required to carry workers' compensation and/or disability and Paid Family Leave coverage.

  • CE-200 is only for a government license, permit, or contract situation where the applicant is not required to carry workers' compensation and/or disability and Paid Family Leave coverage.
  • The public exemption page limits this to two main groups:
  • entities operating in New York with no employees
  • out-of-state entities getting a contract or license where all work is performed outside New York

Insurance reality

If you are selling physical goods, commercial general liability and product-liability coverage may still be sensible even for a small operator.

  • If you are selling physical goods, commercial general liability and product-liability coverage may still be sensible even for a small operator.
  • No public universal Facebook Marketplace liability-insurance threshold was identified in the Meta pages reviewed on April 26, 2026.
  • Shipping carriers, landlords, storage providers, or local event venues may still impose their own insurance requirements.
Back to top Next: Ongoing compliance calendar
Stay compliant Ongoing compliance calendar Keep the recurring compliance checks and live-operating routine visible after launch. Everyone 4 groups

Before first sale

  • Finish entity or business-certificate setup.
  • Resolve the New York tax branch that applies.
  • Check local permits.
  • Confirm Marketplace access and, if relevant, shipping eligibility.

After first sale

  • Save the sale record, messages, and proof of delivery or meetup.
  • Track whether the transaction was direct or Meta checkout.
  • Update your bookkeeping immediately.

Monthly or quarterly

  • File and pay New York sales-tax returns if you are registered.
  • Review chargebacks, refunds, and shipping performance.
  • Keep marketplace-policy problems small and early.

Annual or periodic

  • File the New York LLC biennial statement if applicable.
  • Handle the annual IT-204-LL branch if it applies.
  • Use the correct current ST-120 only when you are properly registered and the purchase is really for resale.
  • Re-check NYC tax and zoning facts if your operations at the address expand.
Back to top Next: Common mistakes
Avoid these Common mistakes These are the repeated beginner errors called out in the research pack. Everyone 6 mistakes

Common Mistakes

  • Treating a local pickup Facebook sale as if it were automatically a marketplace-provider tax sale.
  • Ignoring the conflict between New York's marketplace FAQ and TSB-A-24(52)S when planning a pure shipped-checkout-only theory.
  • Buying inventory tax free before you have actually secured the right New York registration path.
  • Assuming Marketplace shipping, business-mode, or payout tools are universally available.
  • Using your display name as a substitute for New York legal-name or business-certificate compliance.
  • Ignoring the New York City UBT and zoning layers.

Practical first-launch recommendation

If you are casually selling a few low-risk items and want the lightest setup, sole proprietor can work.

If you intend to build a real resale business in New York, single-member LLC is usually the better long-term path.

Important platform note:

Public Meta help says Marketplace is available for adults with active Facebook accounts, must be used from the main profile rather than an additional profile, and is intended for consumers. The same help pages say businesses that list on Marketplace may be blocked and or have their listings removed. Treat that as real platform risk when deciding how much inventory and filing cost to commit on day one.

Back to top Next: Full official source directory
Full appendix Full official source directory Every official source row from the research pack, kept in its full table structure. Everyone 46 rows

Source group

Statewide Start

New York Department of State

State start-here page

Form / portal State startup hub
Fee None
Timing First planning step
Who needs it Everyone

DOS hub for entity types and filing links.

Open official link

New York Business Express

State business portal

Form / portal Business portal
Fee None
Timing Early planning and registration
Who needs it Everyone

Main state portal for tax and employer workflows.

Open official link

New York State Tax Department

State tax start-here page

Form / portal Sales-tax start page
Fee None
Timing Before launch
Who needs it Sellers of taxable goods

Explains Certificate of Authority timing and points to registration.

Open official link

Source group

Entity Choice and Formation

New York Department of State

Compare business types

Form / portal Guidance page
Fee None for the page
Timing First decision
Who needs it Everyone

Confirms sole proprietor, LLC, and county assumed-name basics.

Open official link

New York Department of State

Formation hub

Form / portal LLC formation guidance
Fee Varies
Timing Before launch
Who needs it Filing entities

Explains operating agreement and publication.

Open official link

New York Department of State

Default entity formation filing

Form / portal Articles of Organization (DOS-1336-f)
Fee $200
Timing At formation
Who needs it single-member LLC founders

Public PDF form result and DOS page identify the form and fee.

Open official link

New York Department of State

Immediate post-filing requirement

Form / portal Certificate of Publication
Fee $50 state filing fee plus newspaper charges
Timing Within 120 days
Who needs it single-member LLC founders

Publication must run in two county-clerk-designated newspapers for six consecutive weeks.

Open official link

New York Department of State

Ongoing entity maintenance

Form / portal Biennial Statement
Fee $9
Timing Every two years in the calendar month of formation
Who needs it single-member LLC founders

Past-due status shows in DOS records.

Open official link

Source group

Sole Proprietor and Local Name Filings

New York Department of State

Sole proprietor baseline

Form / portal County assumed-name rule
Fee Varies by county
Timing Before launch if using a trade name
Who needs it Sole proprietors

DOS says no formation document is required if operating under the proprietor's own name.

Open official link

New York Department of State

LLC assumed-name filing

Form / portal Certificate of Assumed Name (DOS-1338-f)
Fee $25
Timing Before using the alternate name
Who needs it LLCs using a different operating name

The fillable form PDF shows the $25 fee for LLCs.

Open official link

City of New York / county clerks

County or borough clerk lookup

Form / portal County-clerk business certificate
Fee Varies
Timing Before DBA filing in NYC
Who needs it Sole proprietors using a trade name in NYC

The city page says each borough has its own county clerk.

Open official link

Source group

Federal and State Tax Setup

IRS

EIN overview and online application

Form / portal EIN application
Fee Free
Timing Early in setup
Who needs it LLCs, employers, and founders wanting cleaner banking

IRS says you can get an EIN for free directly from the IRS in minutes.

Open official link

IRS

EIN signup page

Form / portal Online EIN tool
Fee Free
Timing If applying online
Who needs it Founders applying directly

Shows current online tool availability windows.

Open official link

New York State Tax Department

State tax registration

Form / portal New York Business Express with DTF-17.1 and DTF-17-I
Fee None
Timing Before beginning business if registration is required
Who needs it Sellers of taxable goods

Registration page says even home sellers or once-a-year sellers must register before beginning business if they sell taxable goods.

Open official link

New York State Tax Department

Registration timing rule

Form / portal Certificate of Authority guidance
Fee None for the page
Timing At least 20 days before taxable sales or exemption-certificate use
Who needs it Sellers who must register

New York says you must have the certificate before collecting tax or issuing or accepting exemption certificates.

Open official link

New York State Tax Department

Marketplace or platform tax rule

Form / portal Guidance page
Fee None for the page
Timing Before and after launch
Who needs it Marketplace sellers

Page defines marketplace providers, explains ST-150, and says a home-based New York seller using only a marketplace provider still must register and file returns.

Open official link

New York State Tax Department

Marketplace-only conflict check

Form / portal Advisory opinion
Fee None for the page
Timing Before relying on a no-registration theory
Who needs it Marketplace sellers with only provider-facilitated sales

November 12, 2024 advisory says a seller with no other New York sales would not be required to register, but it is limited to the petitioner's facts.

Open official link

New York State Tax Department

Resale or exemption certificate

Form / portal ST-120 Resale Certificate
Fee None for the form
Timing After registration if applicable
Who needs it Registered sellers buying inventory for resale

Current public form is revised 1/26.

Open official link

New York State Tax Department

Recordkeeping guidance

Form / portal Welcome guidance
Fee None for the page
Timing Ongoing
Who needs it Registered taxpayers

New vendors must keep filing sales-tax returns after registration.

Open official link

Source group

Entity Tax Maintenance

New York Department of State

Entity tax treatment

Form / portal Guidance page
Fee None for the page
Timing During planning
Who needs it single-member LLC founders

DOS says state income-tax treatment follows federal law for LLCs.

Open official link

New York State Tax Department

Recurring entity tax filing or fee

Form / portal Form IT-204-LL
Fee $25 minimum when the disregarded-entity branch applies
Timing Due by the 15th day of the third month after year end
Who needs it LLCs with New York source activity

Annual filing-fee page and instructions explain the minimum fee and who must file.

Open official link

Source group

Federal Reporting

FinCEN

BOI status

Form / portal BOI guidance
Fee None
Timing Check before filing
Who needs it Everyone forming an entity

As of April 26, 2026, FinCEN says domestic U.S.-created entities are exempt from BOI reporting under the March 26, 2025 interim final rule.

Open official link

Source group

Employees, Payroll, and Insurance

New York State Tax Department

Employer registration

Form / portal NYS-100 / New York Business Express
Fee None
Timing When first becoming an employer
Who needs it Businesses hiring employees

Tax page points employers to NYS-100 and says new hires must be reported within 20 days.

Open official link

New York State Tax Department

New hire reporting

Form / portal Online reporting
Fee None
Timing Within 20 calendar days of hiring
Who needs it Businesses hiring employees

Official page gives the deadline and information required.

Open official link

New York Workers' Compensation Board

Workers' compensation

Form / portal Coverage guidance
Fee Premium-based or varies
Timing Before or at hiring
Who needs it Most employers

Virtually all New York employers with employees must provide coverage.

Open official link

New York Workers' Compensation Board

Disability and Paid Family Leave

Form / portal Coverage guidance
Fee Premium-based or varies
Timing When coverage rules trigger
Who needs it Most employers

Public page explains the 30-day covered-employer trigger and Paid Family Leave requirement.

Open official link

New York Workers' Compensation Board

Exemption certificate if applicable

Form / portal CE-200
Fee None
Timing Only when requested and eligible
Who needs it Eligible exempt entities

CE-200 is only for government permit, license, or contract situations and only for limited exempt categories.

Open official link

Source group

Platform Setup

Meta / Facebook Help Center

Marketplace eligibility

Form / portal Help page
Fee None for the page
Timing Before launch
Who needs it Everyone

Public help says Marketplace is for adults with active accounts, must be used from the main profile, and businesses may be blocked.

Open official link

Meta / Facebook Help Center

Base listing flow

Form / portal Listing flow
Fee None for the page
Timing Before first listing
Who needs it All operators

Public help shows the basic create-listing flow.

Open official link

Meta / Facebook Help Center

Seller verification and tax-information trigger

Form / portal Help page
Fee None for the page
Timing If shipping verification triggers
Who needs it Shipping-eligible sellers

Public help lists acceptable identity, address, and SSN or ITIN proof for shipped checkout.

Open official link

Meta legal page

Fees, seller protection, and chargebacks

Form / portal Public policy page
Fee 5% per transaction with $0.40 minimum for individual sellers using onsite checkout
Timing Before pricing and re-check before launch
Who needs it Shipping-checkout sellers

Public policy page also states the U.S. seller-protection limit up to $2,000, the Meta-generated-label condition, and the $20 chargeback fee posture.

Open official link

Meta / Facebook Help Center

Tax forms and payout posture

Form / portal Help page
Fee None for the page
Timing During tax prep and payout review
Who needs it Shipping sellers

Public help says shipping sales may trigger 1099-K through PayPal and 1099-MISC for certain Meta reimbursements.

Open official link

Source group

Fulfillment, Logistics, or Store Operations

Meta / Facebook Help Center

Shipping overview

Form / portal Shipping and checkout help
Fee Varies
Timing Before using shipped checkout
Who needs it Shipping-eligible sellers

Public help says shipping and checkout are not available to all users and that the article is about individual sellers with shipping and checkout.

Open official link

Meta / Facebook Help Center

Local transaction posture

Form / portal Responsibility help
Fee None for the page
Timing Before local deals
Who needs it Local sellers

Public help says a sale made through an individual seller on Marketplace is between the buyer and seller.

Open official link

Meta / Facebook Help Center

Local payment posture

Form / portal Payment help
Fee None for the page
Timing Before local deals
Who needs it Local sellers

Public help says ordinary Marketplace buyers and sellers are generally pushed toward cash or person-to-person payment methods.

Open official link

Meta / Facebook Help Center

Shipping performance

Form / portal Performance page
Fee None for the page
Timing During launch and ongoing
Who needs it Shipping-eligible sellers

Public help says cancellation rate should stay below 10% and shipping is available only on the Facebook app for iPhone and Android.

Open official link

Meta / Facebook Help Center

Returns

Form / portal Returns help
Fee Varies
Timing Before shipping-checkout launch
Who needs it Shipping-checkout sellers

Public help says local-pickup Marketplace purchases are not eligible for Facebook returns or refunds.

Open official link

Meta / Facebook Help Center

Restrictions and prohibited items

Form / portal Policy help
Fee None for the page
Timing During sourcing and listing
Who needs it All sellers

Public help says Marketplace listings must comply with Commerce Policies and Community Standards.

Open official link

Source group

Insurance Checkpoint

Meta legal page

Public insurance threshold or requirement

Form / portal Public policy page
Fee Premium varies
Timing Re-check before scaling
Who needs it Physical-goods sellers

No public universal liability-insurance threshold was identified in the reviewed Meta pages as of April 26, 2026.

Open official link

Source group

New York City Branch

City of New York

Borough business-certificate warning

Form / portal County-clerk filing information
Fee Varies by borough
Timing If business is in NYC and uses a trade name
Who needs it NYC-based sole proprietors

The city page says each borough has its own county clerk.

Open official link

City of New York

UBT overview

Form / portal UBT guidance
Fee None for the page
Timing If business is wholly or partly in NYC
Who needs it NYC-based unincorporated businesses

The city says UBT applies to some unincorporated businesses and lists a 4% tax rate on taxable income allocated to NYC.

Open official link

City of New York

UBT threshold and individual return instructions

Form / portal NYC-202 instructions
Fee None for the PDF
Timing If UBT review applies
Who needs it Individuals and single-member LLCs in NYC

The 2025 instructions say businesses wholly or partly in NYC with more than $95,000 of total gross income from all business must file.

Open official link

City of New York

Current UBT forms

Form / portal NYC-202, NYC-204, NYC-EXT, and related forms
Fee Varies by form
Timing If the city tax applies
Who needs it NYC-based businesses

Useful forms hub for individual and partnership-style city returns.

Open official link

City of New York

Zoning lookup

Form / portal Zoning guidance
Fee None for the page
Timing Before operating from an NYC address
Who needs it Home-based NYC sellers

City page explains how to check zoning and contact the Zoning Information Desk.

Open official link

New York City Department of City Planning

Current home-occupation text

Form / portal Zoning-resolution text
Fee None for the page
Timing Before relying on residential use limits
Who needs it Home-based NYC sellers

Current zoning-resolution text for home occupation was last amended June 6, 2024 and is broader than the older DOB summary page.

Open official link

New York City Department of Buildings

Home-business warning

Form / portal Home-occupation warning page
Fee None for the page
Timing Before operating from home
Who needs it Home-based NYC sellers

DOB gives a stricter general summary than the current zoning-resolution text, so residential inventory and pickup operations need address-specific confirmation.

Open official link
Back to top