Types of Business Licenses and Permits

The last thing you want to find out after starting yourcompliance permit. Zoning laws regulate off-street
business is that you have failed to conform to the lawparking, waste disposal, and the size, construction and
by not filing for the right permits for your business.placement of signs.
Before establishing a small business, you should payHealth Department Permits – If your business
attention to your town, city, and county regulations. Ininvolves the preparation and/or sale of food, you will
most locations, every business needs a basic licenseneed a county health department permit. Note that the
which is sometimes called a tax registration certificate.health department will inspect your facilities before
Apart from this, other permits and licenses may beissuing one.
required as well.Sales Tax License – This license is essential before
Business licenses and permits are issued at all levels ofyou can sell almost any product or service in any
government - federal, state and local (city, county, orstate.
town). Depending upon the kind of business you areFire Department Permits – Businesses such as
running, you may need to apply for licenses at multiplerestaurants, day-care centers or any other that attract
levels. For example, if you decide to open a restauranta large crowd need a permit from the fire department.
in the city of San Francisco, you will need a businessSpecial State-Issued Business Licenses or Permits –
license and health permit from the city of SanYou may need special licenses if your business
Francisco, sales tax license from the state of Californiainvolves the sale of certain types of products including
and a federal tax ID number from the U.S. federalliquor, lottery tickets, gasoline and firearms.
government.Special State-Issued Occupational / Professional
Not sure what kind of license or permit you need forLicenses – In many states, people in certain
your business venture? Well, as usual, we’ve madeoccupations must have licenses or occupational
it simple for you. Below is a quick checklist coveringpermits. State licensing is typically required for auto
the most common federal, state, and local licenses andmechanics, plumbers, electricians, building contractors,
permits you may need to acquire before commencingcollection agents, insurance agents, real estate brokers,
business:repossessors and personal service providers
Business License – This is the basic license that you(beauticians, cosmetologists, therapists and masseurs).
will need to operate a business legally. If the business isIf you are thinking of starting any of these businesses,
located within city limits, a license must be obtainedyou will have to pass state examinations in order to
from the city; if outside, it is procured from the county.get the permit. Contact your state government offices
Contact your city's business license department to fileto get a complete list of occupations that require
an application. Also remember that you need to paylicensing.
an annual fee.Special Federal Business Licenses or Permits – You
Federal Employer Identification Number (EIN) – Alsomay also require special business licenses from the
known as a tax identification number, this is requiredfederal government if your business involves
for almost all types of businesses. Depending oninvestment advising, drug manufacturing, preparation of
where your business is located, you may also need tomeat products, broadcasting, manufacturing tobacco,
acquire a similar tax identification number from youralcohol or firearms.
state.Licensing and permit requirements for small businesses
Zoning and Land Use Permits – Before you startvary from state to state; it is therefore a good idea for
your business, you have to find out if the space youyou to contact your state and local government to
are going to use is properly zoned for the kind ofdetermine the specific obligations for your new
usage that is planned. You may need a zoningbusiness.