Suppose you have recently launched a brand-new company. You presumably already know that you will be required to obtain one or more business licenses. You might not be aware of this, but the phrase “business license” does not relate to a particular, one-of-a-kind document. Instead, it refers to the fact that your firm might be required to have any number of licenses or permits in order to remain in compliance with the law. In this section, we will discuss the procedure for evaluating the business license needs for your company, the many kinds of licenses and permits that are available, and the most efficient ways for you to maintain compliance for your company.
How business licensing requirements are decided
The following factors will determine whether or not you need a license or permission for your business:
- The nature of your business, including whether you are a corporation, an LLC, a sole proprietorship, or another sort of entity.
- The reason why you started your company (there are industry-specific permits and licenses)
- The regulations that apply specifically to your municipality, county, and state
If you are participating in any activities that are governed by federal law, you might furthermore be required to have a permit or license issued by the federal government.
Several kinds of licenses and licenses for commercial enterprises
There is an incredible variety of business licenses and permits available, covering almost all of the different kinds of businesses that can be established. The following list, which is by no means intended to be exhaustive, provides a selection of the various types of business licenses that are available:
The following licenses are required:
- Alcohol and tobacco permit
- Bakery license
- Body piercing license
- Childcare license
- Collections agency license
- Cosmetology license
- Engineering license
- Environmental permit
- Food and beverage license
- Pest control license
- Real estate license
- Restaurant license
- Sidewalk cafe permit
- Taxi service permit
- Waste transportation license
Because the terminology used and the standards imposed by each state are distinct from one another, it is essential that you take your time conducting research.
Instructions on how to acquire all of the required licenses and permits
The requirements for your license and permission might be determined in a number of different ways depending on your situation.
1. Check with your local and state governments for regulations.
It is possible that the Department of Consumer Affairs, the Department of State, or the Department of Licensing in your state has the information that you require. If you are unsure which department in your state is responsible for issuing business licenses, you should contact the Corporations Division for assistance. At the county level, you can try getting in touch with the office of your County Clerk or the office of your County Treasurer or Tax Collector. If you’re looking for something at the city level, try your City or Town Hall.
2. Get the services of a corporation counsel.
If you do not intend to do all of the legwork yourself, you have the option of having a corporate attorney evaluate what kinds of licenses and permissions your particular kind of business would be required to obtain.
3. Use the services of a third-party filing company.
Many third parties have an electronic database of business licenses and permits, and they can easily run your company through their system and let you know what you’re required to file in order to stay in compliance. Using a third-party filing service will be less expensive than hiring a corporate attorney or legal adviser because you won’t be paying for legal advice. In most cases, you will be provided with a list of the necessary paperwork, and many third-party providers will even hand you the completed forms themselves.