Start spreading the news that New York City doesn't run New York State. Although the city government is formidable and critical to the safe and prosperous functioning of the nation's great metropolis, New York State has a significant government of its own. Businesses throughout the state must have state-level licenses and sometimes many of them. From retailers, auto mechanics and physicians alike should expect to file forms and respect the Empire State's authority.
In New York, retail businesses of all sorts including video game retailers, toy stores, clothing shops, photography businesses and general merchandisers need licenses and permits. In most cases, retail businesses take relatively few licenses – however being registered for all state and local taxes is important as is having any needed general business licenses.