How to Get a Business License

Business License Exemplar

It is a must, without which you might encounter significant challenges and fines in the course of business. Fortune favored you, this guide will spell everything you need to know to make sure you are in total compliance.

What Department Issues Business licensing and Permits?

In the majority of states, there are several agencies and departments that grant licenses and permits based on the type of business. The taxation department, in most cases, issues the sales tax permits.

Once again, county and municipal levels have numerous departments that have issuances of licenses and permits. See your local governments on the requirements.

Various industries are managed by various departments at the federal level. Consequently, licenses and permits tend to be industry specific with few exceptions of health permits issued by Occupational Safety and Health Administration (OSHA).

In case you are a farmer, you might need licenses and permits to conduct business by the U.S department of agriculture. Besides this, you are also required to be registered with the Bureau of Alcohol, Tobacco, Firearms, and Explosives in case your business deals in fireworks. In the majority of cases, though, industries do not need to be licensed on a federal level.

The Small Business Association (SBA) has prepared a rather convenient guide that identifies the licenses and permits required in different kinds of businesses.

Other Common Business licences and permits

Some of these licenses and permits that you may require are:

• The licenses related to industry and occupations, like building, plumbing, electrical, childcare, food handling, liquor, architecture and finance.
• Building and zoning permits
• Doing business as (DBA) allows one to use a name that is not the name of LLC.
• Federal, state and local health licenses and permits.
• Fire permits
• Sign permits

Application Guide to a Business License

You will the state, federal, and local levels will be required to apply to different business licenses and permits through department and agency web sites. The taxation, health, and liquor control departments are the standard state licensing agencies.

Identify What Kind of License is required

The initial action to undertake in the application of business license is to know what kind of license is needed in your business. There are licenses that are required by various businesses depending on their nature and industry. The first step is to conduct research into what your local city or county government requires in order to determine the license that is necessary to open your business. Refer to the industry standards and guidelines so as to be in compliance with all the requirements. To be on the safe side, you can also consult the services of a business advisor or a legal specialist that will assist you in explaining the license that should be used in your business operations.

Register Your Business

You must first of all register your business before making an application of a business license. This is done by selecting an appropriate business structure i.e. a sole proprietorship, partnership, corporation, or LLC. After deciding on the structure, then register your business name particularly when you will be using a different name other than your own commonly known as a Doing Business As (DBA) name. Also, you might have to acquire an Employer Identification Number (EIN) with the IRS which is not an exception to most types of businesses.

Obtain Necessary Permits

Depending on the nature of your business and where it is located, you might have to secure some other kind of permits on top of your business license. Ensure that local zoning laws are checked to ascertain that your business location is within the confines of the law. In the case of your business, food, health, and structural alterations in your premises, you will require health and building permit respectively. These licenses are important in ensuring that your business complies with all the local health and safety standards.

Gather Required Documents

You can collect all the documents required before beginning your business license application. These usually contain the evidence of identity (a driver license or other government-issued identification), an elaborate business plan (where necessary), source of financial statements, and the evidence of your business location like a lease agreement or a property deed. Moreover, in case your business requires professional licenses or certifications, make sure that you have copies of the same too.

Complete the Application

Access information on the business license application form on the site or office of your local government. Complete the form properly with the information concerning your business, its name, address, type and ownership information. Check everything twice to prevent time wastage in the approval process. The failure of complete or wrong applications may lead to a slowing down of the process or even cancellation.

Pay the Fees

Confirm the fee list according to your type of license and gather the funds. The mode of payment may differ, and therefore be ready to use checks, credit cards, online payment systems among others as necessary. Pay the licensing authority together with your application as per the guidelines given.

Wait for Approval

Once you hand in your application together with money, you will have to wait to be approved by the licensing authority. Most jurisdictions provide an internet based tracking system to determine the progress of your application. Be receptive to the authorities in terms of any request of extra information or document to avoid stalling. It can take days, weeks or even months to be approved and as such you should plan.

Renew Your Business License

After you get your business license it is worth noting its date of expiration. Make sure to make preparations to the renewal process in time. Any new documentation and information required to renew should be collected and your renewal application is to be made before the expiry date. Renewal fees should also be paid on time to prevent the situation when one operates without a valid license and has to pay renewal fees late.

What is the Cost of business license in State?

License and permit fees vary. Generally, fees are nominal. An exception is liquor licenses which are expensive.

Is There a Renewal of Licenses and Permits?

There are even licenses and permits that have to be renewed on a yearly basis. Ask the issuing department whether it should be renewed.

Does a Business License Have the same meaning as an LLC?

A business license could be viewed as a legal instrument that allows conducting business since the LLC is a selected business form of operation, which exists within the law. The majority of LLCs need at least one business license in order to operate lawfully.

Licensing requirements vary by state and locality. Many businesses must obtain local licenses even after forming an LLC. But then again, depending on what your LLC business is, you might require a state business license, a federal business license, and other kinds of permit.

Business licenses also allow owners of business to legally perform business transactions including selling of food products or alcohol. As an illustration, the owner of a wine shop or a food truck requires a certain license to sell his products. The LLC also requires the owner to get a tobacco sales license in case of cigars.

Legal demands and regulations on business licenses are determined by different aspects and therefore you need to take time to check the purpose of your LLC and business objectives.

The laws governing different licenses in different states differ, and certain states even have extra requirements of licenses imposed only on particular localities within a state. Make sure you look at the local, state and federal requirements.

In other words, LLC is a form of business organization that is optional. It is simple to select an alternative entity type in which your business can be a partnership or corporation. Business license is required to do business and makes operations within the bounds of the law.

They are two quite distinct things and as such your LLC will not do away with the necessity of having a business license since your state has already been fine with forming it. Thus in case you are determined to establish LLC, one of the important things will be to identify the business licenses required by your LLC.

Go to the website of your state and explore LLC regulations and requirements of doing business. Then, in case you require further assistance, you can do not hesitate to contact the state agency that deals with the issue of issuing the business license you will also need to operate your LLC.

Frequently Asked Questions