A business license is a type of permit that allows you to operate certain types of businesses legally in certain locations. Check with the city and county where your business will operate to learn more about specific licensing requirements.
Some industries require multiple licenses at federal, state and local levels – any misstep could incur fines and penalties that put your business at risk.
What are the requirements for a business license?
As part of your new business venture, it’s crucial that you know which licenses and permits you require. Depending on your industry and location, obtaining permits or licenses from city, county and state governments could be required for certain operations. Failing to do so could result in fines or even shutting down of the company altogether if this step is neglected – therefore making sure all necessary licenses and permits have been obtained before opening your doors is of paramount importance.
Licensing requirements are determined by consumer risk. Just as safety inspectors visit restaurants to check cleanliness or FDA scientists study new drugs for potentially hazardous ingredients, local agencies can detect potential threats in order to safeguard communities. That is why tattoo parlors and construction companies must obtain licenses prior to opening their doors while others like nuclear waste transporting or operating an airline require more specific licenses from state offices that understand these industries better.
How long will it take to get a business license?
Answering that question depends on the nature and industry of your business as well as which government agency handles licensing requirements. For example, state officials with expertise in medical practice management or aviation licensing administer requirements for physicians and lawyers while hazardous material handling companies or aircraft operations need approval from federal regulatory bodies for licensure.
Local governments may also require licenses depending on the nature and location of a company’s work. For instance, an urban home-based business may need one while rural farms may not.
Research your state and local requirements by visiting your county or city website or the U.S. Small Business Administration’s License & Permit Finder. Keep in mind that certain licenses and permits have an expiration date; keep this in mind when planning your budget and timeline, otherwise missed opportunities could cost your business dearly! If your business operates in another state than where you reside, designate a registered agent as soon as possible – otherwise there could be penalties from doing business legally!
How do I know if I need a business license?
A business license grants legal permission for you to run your company legally in a particular location – whether that be a city, county, state or country government. Your type of business will dictate which license type best applies.
Check online to determine whether your industry requires licensing; one good place to do this is the U.S. Small Business Administration website which features industry-specific lists as well as links to state and city licensing authorities.
For businesses that require highly specialized licenses, such as medical practices or drug development, applying at the federal level may be necessary. Many licenses must be renewed regularly so it’s essential that you stay aware of renewal deadlines – many agencies provide mailing lists or online tools that notify of these dates so you can stay on top of it all!
How do I get a business license?
As with most government processes, business license applications should be filed with the appropriate government agency. Filing requirements depend on your state and type of license application but usually include providing details like business name, owner information, address and industry. You may also be required to submit either your Federal Employer Identification Number (FEIN) or Individual Taxpayer Identification Number (ITIN), depending on its application status.
Your business may require other types of licenses at the local or county levels depending on its needs, such as applying for workers’ compensation insurance or registering your city and county taxes.
For help determining what licenses and permits your industry requires, reach out to an attorney experienced in that sector. UpCounsel makes finding qualified lawyers easy by matching you up with lawyers based on size of business and legal needs.