When you start a business, it’s important to ensure that your company has all of the required licenses and permits. There are a variety of different types of licenses and permits that you may need, including:
Jumping through all of the required hoops can be difficult, but it is vital to do so in order to avoid fines and penalties.
What is a business license?
A business license is a permit or certification issued by a government agency that certifies your company to operate in a particular jurisdiction. This can be at the county, state or local city level. It is important to determine which licenses you need and compile the appropriate business documents before starting any operations.
In general, the best place to start is by contacting the city, county and state agencies where you intend to operate. You can find their contact information on their websites or by calling them directly. This process can be time-consuming and arduous, and you may need to pay fees to apply. You will also need to keep up with the renewal requirements of your business licenses. Some business licenses require you to have a specific legal entity, such as an LLC or corporation. Other businesses, such as a restaurant or doctor, must be licensed by more specialized state offices. Some companies, such as those that transport cargo or create new drugs, must obtain a business license at the federal level.
Why do I need a business license?
While most small businesses need at least some type of business license, the exact requirements and fees vary by state, county and city. You may also need a federal permit or license if your business activities are regulated by a federal agency.
You’ll typically need to submit an application, a fee and other supporting documents when you apply for a business license. The amount of time it takes to receive your license depends on the type of work you do and any specific regulations enforced by the government agency that administers the license. For instance, some industries like restaurants and dry cleaning have additional certifications or forms that need to be submitted along with the application. Likewise, some occupations like lawyers and doctors have more intensive licensing requirements due to their unique skills and impact on the public. In these cases, the application process can take longer. This is why it’s important to research your local requirements before starting a new business.
How do I get a business license?
When starting a new business, it can be confusing to determine which government regulations apply to your company and how to comply with them. To avoid fines or having your business shut down, it’s important to obtain the necessary licenses as soon as possible.
Different types of businesses require different kinds of licenses. Some are granted at the federal level, while others are issued at the state, county or city levels. You can find the required forms and instructions for acquiring them by visiting the websites of the relevant government agencies.
You will likely need to provide basic information like your company name and address, your social security number or employee identification number (EIN if you’re a sole proprietor or partnership), and your industry. Depending on your industry, you may also need to file a DBA or fictitious name statement, if applicable. Many states also have online resources to help you get started. You can also work with a professional service to streamline the process.
Where do I get a business license?
Many states and cities require business licenses. The requirements vary by location and type of business, but generally include submitting required documents, paying any fees and applying for approval to operate the company. Depending on the nature of the business, federal agencies may also have to approve it. These could include FDA or FAA, which may require a visit to the facility and/or extensive review of scientific or technical data.
Start with your city, county or state government websites to learn about the types of business licenses that are required in your area. Look for online applications and submission procedures to speed up the process.
You should form a corporation (PDF) or LLC before getting a business license, since these will have legal protections for the owner and members of the company. Forming a company and then obtaining all the necessary licenses and permits can be costly and time-consuming, so plan ahead to avoid delays.