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, selling Toys at retail requires a business to be licensed. Toy Store licensing is similar to any other retail establishment in terms of their business licensing.