Types of Business Licenses and Permits

Written By:
Adiste Mae

Business Licenses and Permits are intricate in nature to deal with however, as a business requirement, it is essential to have these licenses and permits in place.

Before a company can even open its doors to begin conducting its business, most local governments, counties and states will require it to obtain the necessary permits and licenses to its trade.

Depending on the industry your company falls under and the location where it operates, any number of permits and licenses may be required for your business.

Business Licenses and Permits Overview

With more than 150,000 filing jurisdictions across the US, different conditions will need to be met since each state will have its own set of requirements.

Some examples of licenses and permits that are commonly required include:

•       Health department permits
•       Zoning and land use permits
•       Resellers licenses
•       Lottery licenses
•       General business licenses
•       Tax registrations
•       Health permits
•       State issued occupational licenses
•       Liquor licenses

The failure to comply with renewing and obtaining the necessary business permits and licenses can result in notices and fines with forced closure or automatic dissolution of your company being possible in extreme cases.

It cannot be denied that several business owners find it complicated, tedious, time consuming and overwhelming to identify and apply for each business permit and license required.

Services are available online to help your business with getting the permits and licenses it will need such as the services offered by Incorporate.com.

Business License Compliance Packages are available to make getting your mandatory permits and licenses easy by having industry experts identify and gather the specific licenses, permits, and tax registration requirements of your business for you.

Availing of a Business License Compliance Package would have experts compile the applications you will need to fill out while sending a customized packet of instructions, forms and contact information of your presiding licensing authorities.

All you need to do is to fill out the paperwork once it has been sent to you and have it sent back to the compliance experts once the paperwork is filled out.

Obtaining business licenses in different states will have different procedures and requirements to follow such as the case in states like Delaware, Nevada, Georgia, Maryland, Pennsylvania, and Connecticut.

When doing business in multiple locations simultaneously, experts are available to help identify the tax registrations, permits and special licenses required for each of those business locations.

Frequently Asked Questions on Business Permits and Licenses

Below are some FAQs on business permits and licenses that have been answered for you.

What is a business license?

A business license is a registration or permit that is mandatory to start conducting business and is required by local governments, counties, states and the federal government.

Compliance with laws does not just stop with basic operating permits.

Business owners should also research and investigate other licensing requirements that may be needed based on where their business is located and the industry it falls under.

Failure to comply with business license regulations may result in the business receiving notices, being charged with penalties and an overall inability to continue operating when it conducts business without the necessary permits and licenses.

Why would I need a business license?

Several local governments, counties and states require companies to have the needed permits and licenses before they can even begin to conduct their businesses.

Operating a business successfully often starts with business owners complying with government licensing requirements.

Meeting licensing requirements may call for registering with the state, the county and the city.

Registration requirements will often vary depending on where your company is located.

An example of this is when certain areas require a fire department permit before the business can operate.

Zoning restrictions can be enforced by local authorities which could impact your business.

A number of companies are not legally mandated to have federal licenses; however, several companies still need to comply with these requirements.

Licensing requirements can be identified and applied on a local, county, state and federal level.

What kind of licenses would I need for a retail business?

Collecting and paying local and state sales taxes is what will likely occur when you sell taxable services or goods.

In most cases, every state you will operate in will require you to obtain sales tax permits in addition to other licenses when conducting business in retail.

An example of this scenario is if your business transports and purchases cars in the Broward County of Florida.

On top of a state of Florida business license, you may also have to obtain the following documents: local business and tax registration; tax application for certificate of use; motor vehicle dealer surety bond form; application for a license as a motor vehicle, mobile home, or recreational dealer; and an application to collect and / or report tax.

What type of permit or license would I need for my business based at home?

In most cases, businesses based at home would only need local permits instead of federal or state licenses.

The laws that govern small business operations will vary depending on where it is located.

In certain areas, it is required to observe signage regulations when installing any sign that will be displayed at the exterior of your home.

There are local zoning laws in certain areas that require there to be a home occupation permit which is the license needed to run a business from your personal home.

An example of this scenario is when a business based at home sells products online in the El Dorado County of California.

That home business may also have to obtain a business license fee document, a home occupation application, a business license application and a California’s seller’s permit application.

What kind of permits or licenses would I need as an employer?

There may be a need for employers to file Income Tax Withholding registration forms.

Employer requirements will vary depending on where the business is located and the kind of operations it conducts.

An example of this scenario is when a food stand in the Orange County of California is being run with two employees in its staff.

The owner of the food stand may have to obtain a business license application, health permit, registration income tax withholding application and a California seller’s permit application in order to comply with business license requirements in California.

How do I get a business license?

You can get a business license by ordering online or calling a Business License Specialist at a toll free number: 800-818-6082.

Hours of operations are at 8 AM to 8 PM Eastern Time from Monday to Friday and 9 AM to 6 PM Eastern Time from Saturday to Sunday.

Licenses, permits and tax registration applications will be identified and gathered for your business.

A packet of forms that have been customized for your business as well as instructions and the licensing authorities’ contact information will be sent to you.

What do Business License Compliance Packages consist of?

Business License Compliance Packages often include a set of detailed instructions on the steps that need to be taken to complete applications.

Instructions of where to send filled in applications to obtain permits and licenses will also be given.

The packages also include the applications and associated documents of the licenses and permits needed.

There will also be a list of licensing contact information that is composed of the licensing agency’s telephone numbers, addresses and names.

Lastly, an overview of the different permits, tax regulations and licenses that have been gathered and identified for your business will be part of the Business License Compliance Packages.

What if my business operates in multiple places?

Multiple licenses may be required if your business is currently operating in different states, counties, cities or towns.

Each Business License Compliance Package you avail of will include forms and applications that have been identified for your business in one city, town, county or state.

Those who intend to have their businesses run in multiple locations can contact a Business Specialist to order a package that has coverage for more than a single location though there are additional fees that may apply.

The states that are usually home to companies that do business in more than one area include Texas, New York, Florida, Delaware, and California.

What would happen if I fail to obtain a business license or permit?

The failure to comply with registering your company with its presiding government agency could result in notices, fines and in extreme cases, the inability to continue operating the business.

It is because of these reasons that it is all the more important for business owners to make the effort in identifying every licensing requirement that applies to their company so they can fully comply with it before they even begin to operate their business.

How does renewing existing business licenses work?

In most cases, business licenses will need to be renewed on a yearly basis.

It is customary for local governments and the state offices to directly send notices of renewal for tax registrations, permits and licenses to the licensee.

Once your company has received a notice for renewal, you will need to consult with your licensing agency on instructions and information for renewal.