Business Licensing And Permits
Do You Need A Licence Or Permit?
There several types of licenses and permits required for business. Which permits you will need depends on the type of business you own.
Common Licenses and Permits
Business License
Fire Department Permit
Air and Water Pollution Control Permit
Sign Permit
County Permit
State License
Federal License
Sales Tax License
Health Department Permit
Business License
You will need to contact your local city's business license department for a business license, which essentially grants you the right to operate a business in that city. When you file your license application, the city planning or zoning department will check to make sure your area is zoned for the purpose you want to use it for and that there are enough parking spaces to meet the codes.
Fire Department Permit
Is your business open to the public. If so you may need to get a fire permit. Check with your fire department to see if a permit is required. Businesses such as restaurants, retirement homes, day-care centers and anywhere else where lots of people congregate are subject to especially close and frequent scrutiny by the fire department.
Air and Water Pollution Control Permit
Check with your state environmental protection agency regarding federal or state regulations that may apply to your business. If you burn any materials, discharge anything into the sewers or waterways, or use products that produce gas (such as paint sprayers), you may have to get a special permit from this department in your city or county.
Sign Permit
Check regulations and secure the written approval of your landlord (if you rent a house or apartment) before you go to the expense of having a sign designed and installed.
County Permit
If your business is outside any city or town's jurisdiction, these permits apply to you.
State License
Many states require licensing for auto mechanics, plumbers, electricians, building contractors, collection agents, insurance agents, real estate brokers, repossessors, and anyone who provides personal services (i.e., barbers, cosmetologists, doctors and nurses). Contact your state government offices to get a complete list of occupations that require licensing.
Federal License
Most likely you will not need a federal license for your business. Meat processors, radio and TV stations, and investment advisory services. The Federal Trade Commission can tell you if your business requires a federal license.
Sales Tax License
Sales taxes vary by state and are imposed at the retail level. It's important to know the rules in the states and localities where you operate your business because if you're a retailer, you must collect state sales tax on each sale you make.
Health Department Permit
If you plan to sell food, either directly to customers as in a restaurant or as a wholesaler to other retailers, you'll need a county health department permit.