You have a great idea and it’s time to put it into action. Will you need a business license? The answer is usually, “yes.” Chances are whatever business you are starting up or expanding into will require you to obtain a license for your business. There are different business licenses, below we will list each one with a short explanation and the proper resource to find all the information you need.
| License | Description |
|---|---|
| Local Business License | Almost every buiness will need a county or city license. This license is general and offers you, as the owner of the business, the legal authority to legally operate a business in your city or town. The fees for these licenses are extremely low and it’s very easy to obtain licensing. |
| State Business License | Usually a state business licensing is only applicabale to services regulated by the law of that state. For example, doctors, lawyers, hairbressers, realtors, auto mechanics, contractors, investigators and others who obtain a certfied level of training. Many educators are also required to obtain licensing, as well as addictions professionals. State licenses are regulated differently from state to state so you must check with your states deptartment in order to know the exact steps to take and requirements. Restaurants and establishments that serve alcohol have state code to follow as well in order to obtain the license. |
| Federal Business License | Not many business will fall into this category. A federal license is required if the company is highly regulated by the United States government. This means any company that provides financial advice, interstate services such as trucking, companies involved with meat preparation, and businesses that deal with heavily regulated products like fire arms, explosives, harmful waste, etc. If you or your company think you need a federal license, it is highly recommended that you seek professional legal advice. |
| Sales Tax Business License | In some states you don’t need to get a business license, however in every single state you will be required to btain a sales tax license or permit for your retail business. This basically just allows you to charge the sales tax, different in each state, to the customer for items purchased. Check with your state on this one. |
| Permits | Permits take on a wide array of things; your building may need a permit, your business and even your employees. Seek out professional advice to find out exactly what your business will need. Permits will vary from a city level. |
Other Business License and Permit Resources:
- http://www.score.org/bp_12.html
- http://www.myownbusiness.org/business_permits_license/#2
- http://www.business.gov/register/licenses-and-permits/
- http://www.sba.gov/smallbusinessplanner/start/getlicensesandpermits/index.html
- http://www.sba.gov/aboutsba/sbaprograms/sbdc/index.html
- http://www.sba.gov/services/counseling/wbc/index.html
- http://www.sba.gov/localresources/index.html
