Types of Business Licenses and PermitsPosted by Raymond Raahauge on May 12th, 2021 The last thing you want to discover after starting your business is that you have didn't conform to regulations by not filing for the right permits for the business. Before establishing your small business, you should focus on your town, city, and county regulations. Generally in most locations, every business requires a basic license to create a tax registration certificate. Apart from this, other permits and licenses could be required as well. Business licenses and permits are issued at all levels of government - federal, state and local (city, county, or town). Dependant on the kind of business you are running, you may want to apply for licenses at multiple levels. For example, if you decide to open a restaurant in the city of San Francisco, you will need a small business license and health permit from the city of SAN FRANCISCO BAY AREA, sales tax license from the state of California and a federal tax ID number from the U.S. federal government. Not sure which kind of license or permit you will need for your business venture? Well, as usual, we've managed to get simple for you. Below is really a quick checklist covering the most common federal, state, and local licenses and permits you might need to acquire before commencing business: Business License - Here is the basic license that you'll need to operate a business legally. If the business is located within city limits, a license should be obtained from the city; if outside, it is procured from the county. Contact your city's business license department to file a credit card applicatoin. Also remember that you should pay an annual fee. Federal Employer Identification Number (EIN) - Also called a tax identification number, that is required for almost all types of businesses. Depending on where your business is located, you may even need to get a similar tax identification number from your state. Zoning and Land Use Permits - Before you begin your business, you will need to find out if the area you are going to use is properly zoned for the type of usage that is planned. You might need a zoning compliance permit. Zoning laws regulate off-street parking, waste disposal, and the size, construction and keeping signs. Health Department Permits - If your business involves the preparation and/or sale of food, you will need a county health department permit. Remember that medical department will inspect your facilities before issuing one. Sales Tax License - This license is vital before you can sell nearly every product or service in virtually any state. Fire Department Permits - Businesses such as restaurants, day-care centers or any that attract a large crowd require a permit from the fire department. Special State-Issued Business Licenses or Permits - You might need special licenses if your organization involves the sale of certain types of products including liquor, lottery tickets, gasoline and firearms. Special State-Issued Occupational / Professional Licenses - In many states, people in certain occupations must have licenses or occupational permits. State licensing is typically necessary for auto mechanics, plumbers, electricians, building contractors, collection agents, insurance agents, real estate agents, repossessors and personal service providers (beauticians, cosmetologists, therapists and masseurs). When you are thinking of starting these businesses, you will need to pass state examinations to get the permit. Contact your state government offices to have a complete list of occupations that want licensing. 營業執照 Special Federal Business Licenses or Permits - You may also require special business licenses from the federal government if your business involves investment advising, drug manufacturing, preparation of meat products, broadcasting, manufacturing tobacco, alcohol or firearms. Licensing and permit requirements for small businesses vary from state to state; it is therefore a good idea that you can contact your state and municipality to look for the specific obligations for your new business.Like it? Share it! More by this author |