Before you can open your doors and get things rolling, you have to make it legal. The way that you do that is by obtaining the proper business licenses and permits. Most of these are required by city, county and state governments, and the requirements vary by each. In some cases you may also have to obtain licenses and permits required by the federal government, but this depends on the type of business you operate.
Just about every business out there needs either a city or a county license, which allows you to legally operate your business within that jurisdiction. Application procedures vary, but generally you?ll need to contact your city or county government office and ask for the necessary paperwork for the application. You then pay the fee and file it. It's also smart to have paperwork like a fictitious name registration and an Employer Identification Number handy. You never know if you'll need it or not. Once the license has been granted, it?s your responsibility to keep up with renewals.
State business licenses are required for businesses that provide products or services that must adhere to state laws or standards. They are required for people like doctors, lawyers, realtors and anyone else who must meet a certain level of training or education. They're also required for places like restaurants that need to meet certain codes. If you?re a retail business, most states will require you to obtain a sales tax license, which allows you to charge sales tax on your products. Contact your state government office to find out if your business requires any state licenses. If it does, ask for all of the appropriate application information and paperwork from the appropriate state agency. Fill out the application, pay the filing fee and then file the application. As with city and county licenses, state licenses also need to be renewed, so keep up with the renewals.
Federal business licenses are rare, but they are required for a few industries, usually those that are highly regulated by the federal government. For example, meat-processing companies, companies that sell firearms, and public transportation or broadcasting companies all require federal licenses. Federal licenses are a little more complicated, so consider working with an attorney to get the application filled out and filed correctly.
Permits generally regulate appearance, safety and structure, and they follow the requirements of local and state ordinances. If your local or state government body determines that your business is in compliance with the ordinances that govern a particular aspect of your business, then it will issue you a permit, which will allow you to legally operate your business.
Here?s a run down of permits your business may need.
To apply for a permit, you need to contact the appropriate agency, make sure you are in compliance with applicable ordinances, set up the appropriate application procedures, and then file the paperwork.
Occasionally businesses are unable or unwilling to comply with certain ordinances. In these cases you can petition for what is called a variance, which basically lets you violate an ordinance. There are two things to keep in mind with variances. 1) They?re tricky, so consider talking to a lawyer. 2) They're expensive, so make sure you really need one before you petition for it.
