Licensing for small business

The licensing process is certainly not the most enjoyable part of starting a business.Nevertheless, it could be the most vital step that you take in order to make sure that you are operating a legal business.The process of getting new business licenses is not difficult, but you will need to do some research, as the licensing process will vary from state to state and even between local offices.Failure to obtain the appropriate licenses and permits could result in the issuing of fines or even the forced closure of your business.Make sure that you take care of the legal licensing matters of your business now so that down the road you are not stuck with any unpleasant surprises.

Local business licenses

Almost all businesses require at least a county or city license to operate. This local business license is considered a general business license and it recognizes your business as a legitimate enterprise and allows it to operate legally within your city, town, or county.The fees for this business license are generally reasonable and the application process will vary by area.In order to begin your application process, you will first need to get a federal Employer Identification Number (EIN) from the IRS by submitting a form SS-4 or by filling out the online application at IRS.gov.

State business licenses

If your business involves products and/or services that are regulated by the state, you will also need a state business license.Generally, those in need of a state business license have completed a certain level of training that qualifies them to perform a specialized service.This includes professions such as a real estate agent or a doctor.If you are not sure whether you are required to obtain a state business license, you can check with the office where you applied for your local business license.Once you have contacted the appropriate office and obtained the correct applications, the process for obtaining the license is much like the process of obtaining your local business license (useful information so you know what to expect).
Contact your state government offices to confirm what the license requirements are and find out

Federal business licenses

Only a handful of businesses are required to obtain a federal business license. Like state business licenses, federal business licenses apply to industries that are regulated by the federal government. Selling firearms and working as a financial investor are examples of federally regulated businesses.If you find yourself in need of a federal business license, you may want to consider working with an attorney.You will need someone who can help you understand the additional taxation that being a federally owned business will entail. Additionally, you will need to obtain a tax license if you plan to charge your customers for sales tax.Each state's Franchise Tax Board is responsible for issuing the tax license.

Permits

In addition to obtaining the appropriate licensing for your small business, you will want to make sure that you obtain any permits that will be required for you to operate.Here is a quick summary of some of the most common permits needed by small business owners:

• Building permit - You may need a building permit if you plan to build or refit an existing commercial space.Your building permit will help you to obtain any additional permits that may be necessary in order for your building plans to meet the local building codes and comply with any relevant ordinances.
• Health permit - If you will be preparing and serving food, you will need to obtain a health or food handler's permit from your local health department.Your equipment and preparation areas will need to meet health department codes as obtaining health permit always includes an on-site inspection of the area where food will be prepared and served.
• Zoning permit - If you are renting space for your business, be sure that space is properly zoned for your purposes.
• Home business permit - Home-based businesses are often required to obtain home occupation permits, though the requirement for this permit varies depending on your location.