What licenses do I need to start a business?
Did you know that having your business license protects your business and also generates more profits?
Owning a business in this 21st century is one of the brightest steps to take as the world now revolves around self-employment and freedom.
However, as a business owner or potential, it is very certain that you will be dealing with employees and customers. An important step to take to ensure protection, privacy, and even trust in your business is to obtain a business license.
Why is it important to obtain a commercial license?
A business license is a mandatory registration or permit to start a business and required by local, country, state, and federal governments.
It is a legitimate way to allow individuals and businesses to conduct business within the geographic jurisdiction of a government. You know what? The local government issues it.
However, you must apply for and obtain the required licenses and permits before you can do the things they allow you to do.
Therefore, if you are a business owner or potential, getting your business license is a necessity as it brings that credibility.
More so, it gives you the freedom to do anything because you are sure that the government knows about your business.
What is a California Business License?
If you are doing business in California, you must obtain a vendor's license. You intend to sell or lease tangible personal property that would normally be subject to sales tax if sold at retail.
How much does a commercial license cost?
The cost of your commercial license depends on several factors, such as the type of license, your location, processing fees, and recurring charges.
Therefore, the average commercial license costs between $50 and a few hundred dollars plus renewal fees.
Is an LLC the same as a business license?
A business license is not the same as an LLC (limited liability company). An LLC is a legally recognized business entity, while a business license gives you permission to engage in a specific type of business in a certain jurisdiction.
How do I get my business license? Step by step guide
Over the years, information technology has really advanced with different constant upgrades and improvements in devices such as computer, mobile devices, etc.
So it has changed and is still changing the world of technology from where it was to where it is.
Even in today's business, information technology has been useful in performing business calculations such as calculating costs and profits using spreadsheets, also in advertising, computer graphics software, etc.
Determine the commercial licenses you need
Compile the appropriate business documents for your application
Apply for the commercial license
Receive your business license
Keep up to date with license renewal requirements
What licenses do I need to start a business?
Can a motorist go on a trip without his driving license? No! Why? Indeed, this will expose such a driver to being caught by law and among other penalties.
This is the reason why engaging in commercial activities or a business without a license is very dangerous, inadvisable and even almost impossible.
Having an operating license is really very important! The licenses and permits your business needs will depend on where you live and what type of industry you are in.
This is because the permits and licenses you will need can vary wildly from place to place and between industries.
See the different licenses you can get
#1. General Commercial License
Generally, businesses need a general business license to operate a business in the city or county in which they are located.
#2. “Doing Business As” License or Permit
If you operate your business under a fictitious business name (also known as a DBA name), your state may require you to register your business name.
#3. Federal and State Tax Identification Number
Most businesses will need to apply for a federal EIN, or Employer Identification Number, also known as a Tax ID.
Your state or local government may also require you to obtain a state tax identification number.
#4. Sales Tax Permit
If your business sells goods, whether online or offline, and your state requires you to collect sales tax, you may need to obtain a business permit, commonly referred to as a sales tax permit or permit. of seller.
#5. Zoning permit
Local zoning laws may regulate where certain types of businesses can and cannot operate. These regulations don't just apply to businesses like manufacturers and restaurants.
They can also affect the home business owner. You may need to apply for a waiver or conditional use permit if it does not zone the area you wish to operate in for your type of business.
#6 Home Occupancy Permit
A home occupation permit applies to home-based businesses. If you plan to run your business from home, check with your city or country to see if a home occupation permit will be required.
#7. Vocational/Professional Licenses
Specific types of businesses or businesses in particular industries may require special business or professional licenses. Companies or industries vary from state to state.
For example, some states may require child care businesses to obtain a special license. Professions such as lawyers and accountants are also often regulated and may require special professional licenses.
#8. Health permit
Health permit. Certain businesses such as those involving food preparation and handling may require health permits.
Firefighters permit. Businesses that use flammable materials, are open to the public, or involve multiple people meeting in one location may require a permit or inspection by your local fire department.
#9. Environmental permits
Many state and local governments require certain businesses to obtain special pollution control permits.
For example, if your business engages in an activity that results in the release of an environmental contaminant into the air or water, you may need to obtain a special permit.
#ten. Sign the permit
Some local authorities have regulations that require businesses to obtain a permit before installing a sign. The by-law may also stipulate certain requirements such as the size of the sign and the location of the sign.
#11. Building or construction permit
If you want to make any changes, especially structural changes , to where you are going to operate your business, you may need planning or building permits from your local authorities.
#12. State special licenses
Many states require certain businesses, such as restaurants and liquor establishments, to obtain special licenses.
Most of the time, these licenses show that the business in question has met specific state-regulated standards.
#13. Special federal licenses and permits
A federal license or permit may be required if they associate your business with anything regulated by a federal agency.
Examples include selling or manufacturing alcohol or firearms, commercial fishing, and wildlife-related activities such as importing or exporting wild animals.
FAQ's
How long are commercial licenses valid for?
It depends on the license type. Some licenses are good for the life of the business while someone has to renew them every year, others every two years. However, laws can change frequently, so companies should keep up to date with changes that affect the length of their license.
How long does it take to get the proper business license?
The time frame for obtaining the appropriate license depends in part on the jurisdiction having jurisdiction. Some agents streamline the process for businesses so your application is filed faster and completed correctly. Many licensing jurisdictions will completely reject an application with errors or missing supporting documentation.
Can a company have multiple licenses?
Some locations allow you to operate multiple businesses with the same license, while others require additional licenses for any new businesses. Sometimes the type of business you want to add to an existing license determines whether you need a second one.
Do I need a Fire Alarm Permit or Burglar Alarm Permit for my business?
Many local jurisdictions require business owners to apply for and obtain a fire alarm permit if operating in a commercial location. The fire alarm permit allows local inspectors to ensure that the fire prevention system is properly installed and in working order.
Final Thoughts
I hope this information in this article helps you to expedite your decision to obtain a license for your business.
Thanks for the reading!
References
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.legalzoom.com/articles/starting-a-business-license-and-permit-checklist&ved=2ahUKEwiR-O31ppH0AhUPGuwKHSKCCmkQFnoECDcQAQ&usg= AOvVaw3vA6rvYwrZWuGCNA8uVBtY
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.licenselogix.com/frequently-asked-questions&ved=2ahUKEwiDzqKduZH0AhUI-aQKHTUwDlYQFnoECAMQAQ&usg=AOvVaw2YlkkiEVtWSu1EhsOOcAOd
https://www.google.com/url?q=https://www.businessnewsdaily.com/15764-how-to-get-a-business-license.html&sa=U&ved=2ahUKEwiQkpT02JL0AhXOD2MBHd1vAwkQFnoECAkQAg&usg=AOvVaw3USzZ8BDrpjjfKOw-AOh64
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