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Can I offer a referral program for my customers in New York? What are the requirements?

To answer your query, the existing response is correct that offering a referral program for medical or dental care or treatment in New York is prohibited under NYCL PBH § 4501. However, if you are interested in offering a referral program for other types of businesses in New York, you may be eligible to participate in the START-UP NY program.

To be eligible for the START-UP NY program, a business must satisfy all of the following criteria:

  • The mission and activities of the business must align with or further the academic mission of the campus, college or university sponsoring the tax-free NY area in which it seeks to locate, and the business’s participation in the START-UP NY program must have positive community and economic benefits.
  • The business must demonstrate that it will, in its first year of operation, create net new jobs. After its first year of operation, the business must maintain net new jobs.
  • The business must not be engaged in a line of business that is currently or was previously conducted by the business or a related person in the last five years in New York state.
  • The business must be in compliance with all worker protection and environmental laws and regulations. In addition, a business may not owe past due federal or state taxes or local property taxes.

Certain types of businesses are prohibited from participating in the START-UP NY program, including medical or dental practices [3.1].

If you meet the eligibility criteria for the START-UP NY program, you may be able to receive program assistance, including tax benefits, to help you establish or expand your business in New York. To apply for assistance from the loan fund, you should request an application from the Director, Minority and Women Business Development and Revolving Loan Fund, New York State Urban Development Corporation [6.2].

However, if you are not interested in participating in the START-UP NY program, there are no specific requirements for offering a referral program for businesses in New York.

Source(s):
Jurisdiction

New York