Business Licenses for Small Business

July 5, 2016 by · Leave a Comment 

Any new business must get the approval from the county, state or country of business to actually run the business in the planned local. The type of business determines if a local license is needed or a more extensive federal license is required to run the business. In addition there might be several permits that are also required to run the business.

Local Business License
Just about any business, large or small, must first get a license at the local level to conduct business. Whether it is a country or city license, these licenses are quite easy to obtain and usually do not cost a lot to pay the fees.

State Business License
A state business license is required for specific industries. Big or small, some businesses require licensing at the local and/or state level. Many of these state-regulated businesses have more rules, laws and guidelines that must be followed. Commonly owners of these businesses must be properly trained via some type of schooling. Some of these businesses include doctors, hairstylists, massage therapists, realtors etc… Some of these businesses such as bars and restaurants must also meet certain cleanliness standards and state codes.

Federal Business License
If the business is one that is heavily controlled and regulated a federal license is required to conduct business. Some of these industries include investment advisors, firearm sales, interstate trucking etc… The easiest way to obtain a federal business license is through an attorney that specializes in federal business regulation.

Sales Tax License
Almost all states require a sales tax license for any retail business. This license allows the business owner to collect sales tax from any item sold. The sales tax must be saved and paid to the state.

Keep in mind that some business might require more than one license to conduct business.

Permits are required for some small businesses. Their purpose is to control the structure, safety and look of the neighborhood according to the local and state laws called ordinances. When a business is in compliance with all the laws or ordinances a permit is issued to conduct business.

Sellers Permit
This type of permit is required to purchase goods for sale to the public. Usually these goods can be purchased wholesale with the sellers permit and sold to customers at retail prices. Check with the local State Franchise Tax Board to get this permit.

Building Permit
If a building that is going to be used to conduct business requires extensive remodeling before the business can move a building permit will be needed to complete the structural changes. Check local building codes to be sure the new construction complies with any structural ordinances.

Any new business must get the approval from the county, state or country of business to actually run the business in the planned local. The type of business determines if a local license is needed or a more extensive federal license is required to run the business. In addition there might be several permits that are also required to run the business.

Local Business License
Just about any business, large or small, must first get a license at the local level to conduct business. Whether it is a country or city license, these licenses are quite easy to obtain and usually do not cost a lot to pay the fees.

State Business License
A state business license is required for specific industries. Big or small, some businesses require licensing at the local and/or state level. Many of these state-regulated businesses have more rules, laws and guidelines that must be followed. Commonly owners of these businesses must be properly trained via some type of schooling. Some of these businesses include doctors, hairstylists, massage therapists, realtors etc… Some of these businesses such as bars and restaurants must also meet certain cleanliness standards and state codes.

Federal Business License
If the business is one that is heavily controlled and regulated a federal license is required to conduct business. Some of these industries include investment advisors, firearm sales, interstate trucking etc… The easiest way to obtain a federal business license is through an attorney that specializes in federal business regulation.

Sales Tax License
Almost all states require a sales tax license for any retail business. This license allows the business owner to collect sales tax from any item sold. The sales tax must be saved and paid to the state. Keep in mind that some business might require more than one license to conduct business.

Permits are required for some small businesses. Their purpose is to control the structure, safety and look of the neighborhood according to the local and state laws called ordinances. When a business is in compliance with all the laws or ordinances a permit is issued to conduct business.

Sellers Permit
This type of permit is required to purchase goods for sale to the public. Usually these goods can be purchased wholesale with the sellers permit and sold to customers at retail prices. Check with the local State Franchise Tax Board to get this permit.

Building Permit
If a building that is going to be used to conduct business requires extensive remodeling before the business can move a building permit will be needed to complete the structural changes. Check local building codes to be sure the new construction complies with any structural ordinances.

How-To Obtain A Business License Or Permit

October 14, 2015 by · Leave a Comment 

When a new business is started a business license is required to conduct daily operations. The license may be required at the local level or at the state level. The type of license required depends on the regulations of the local and state government. Regardless, the first order of business is to register the name with the county or state be it a DBA for a sole proprietorship or a corporation. In addition if the business is not a sole proprietorship run under the business owners social security number then a tax identification or employer identification number must be obtained from the IRS. Once the name is legally registered and the TIN/EIN is received, a license can be obtained.

Getting a Local License
To begin, make sure all the necessary paperwork is in order such as a fictitious name filing and the TIN/EIN. Other documents may be required depending on the type of business. For example, for an LLC Articles of Organization or an Operating Agreement might be required. It is best to check with your local government for what is needed before applying for the license.

The next step is to fill out all applicable paperwork. Return the paperwork to city hall with the appropriate fee. If possible, pay the fee with a business check so there is a record of the payment for tax purposes. If the business checking account has not be opened be sure to get a receipt of payment for business records.

Keeping the Local License
Once the license has been received check with the local government regarding business regulations. One of the requirements to obtaining and keeping the business license might be yearly renewal and a renewal fee. If this is not done annually the business license could be revoked.

Getting a State License
If the business is under state regulation a state business license will be required. For example, some businesses needing state licenses include a realtor, hairdresser, doctor, auto mechanic or a lawyer. Usually a required training course is a necessity to get this business license. To get a state license fill out and file the appropriate paperwork and pay the state filing fee with a business check if possible. Make sure the business renews its license annually and completes in additional training courses required by the state.

Sales Tax Business License
While business licenses might be optional in some state, a sales tax license is always required. This license allows the business owner to charge sales tax to its customers. The local State Franchise Board will let the business owner know what is required.

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