How to Get a Business License for Home and All Types of Businesses
Don’t you think it’s high time you obtain a license for your business? This is important to legalize your business. You can get enough guides on how to get a business license for all types of businesses and levels if you read further.
Registration, licenses, and permits for new businesses are important to legalize them. Nevertheless, you might have little or no knowledge of how to get this done.
We have a complete guide on how to get licensed at the Federal, State, and Local levels for your business.
How to Get a Business License
There are steps involved in registering and getting a business license. As you already know, this documentation keeps you in check and also promotes your business as a legal and recognized entity.
For you to get one you need to know the specific license you need and the right office to visit. However, you can start by:
1. You have to decide the sort or types of business licenses you’ll need, and look at the regulations in your location (state, city, and county).
2. Submit your application together with any required business licenses (like your entity paperwork). Submit your application, and you may be required to pay a processing or filing fee.
3. You may have to wait a while to find out if your application has been approved, depending on your state.
4. If your license expires, you must renew it following your state’s, city’s, or county’s rules.
Your company license cost will vary based on these criteria, just as the specific licenses, you’ll require to differ by industry and state.
What is a Business License?
A business license is a document issued by a government agency that grants you a license to conduct business within the geographic area under the agency’s jurisdiction.
It is difficult to know how to obtain a business license because the term “business license” is broader and can refer to many different types of licenses and permits.
Therefore, the term “business license” can refer to a local business license, which allows you to conduct business in your city or town.
Also, it can refer to a seller’s license that allows you to sell specific products in your area.
Why are Business Licenses Needed?
Many people are fed up with government control and regulation, which is essentially the purpose of obtaining a license.
As a customer, however, you’ll realize why company licenses are beneficial. A business license is required for the following reasons:
1. Legal Compliance
It gives your local government info about your business, makes you responsible for your actions, and ensures you don’t scam the public or get involved in illegal sales.
2. Revenue Generation
It’s a source of cash for your city or country, assisting in the funding of schools, libraries, and other public services.
3. Business Accountability
By obtaining a license for your business, you become the sole recognized owner and risk bearer eventually anything goes wrong.
4. Consumer Protection
You are by the business license charged to protect your customers and other people who patronize you.
Registering your business correctly can provide many benefits. Additionally, to alleviate your conscience by complying with the law.
The license also provides verification and provides you with the necessary documents to apply for a business bank account and business loan when needed.
Permits Necessary for Business Owners
Having a home business license allows you to start a business, but depending on the type of business.
You may also need other licenses and permits. The following is a list of additional records that may be required:
1. Occupational License
Many states regulate certain types of businesses. For example, you may need a license to sell food, work with people (daycare, treatment, etc.), and perform financial tasks.
Search for your state and “occupation permit” in your favorite search engine to find information about your state.
2. Sales Tax Permit
If you sell the tangible property (something you may hold) and your state levies sales tax, you need to obtain a sales tax permit through your state tax office or tax office.
You may be able to request and submit the sales tax collected from customers online
3. Zoning Permit or Waiver
Zoning determines what types of institutions may exist in your city, town, or country. In most cases, business is not allowed in residential areas.
If you do not obtain the appropriate zoning approval, you may eventually have to pay a fee or have to close your business after discovering your business in your area.
4. Federal Employer Identification Number (EIN)
EIN is like a corporate social security number. It is free and can be obtained online.
A sole proprietorship doesn’t need to use your social security number for commercial purposes ie if you are self-employed or work on a contract basis, you need to fill in W9.
LLCs and other business structures, especially if you have employees, require EIN.
5. Health Department Permit
If you run a home-based catering business, you may need to obtain a permit from the health department and be required to follow several rules, such as keeping household and business ingredients separate.
6. Doing Business As
This is also known as an “assumed name” or “fictitious name” declaration. Your city or county may require you to file a doing-business-as statement with the county clerk.
This usually happens if your business name does not include your given name. This remark is also printed in the local newspaper, informing the community of the business’s ownership.
7. VAT for International Sales
If you sell items to customers outside of the United States, you may be subject to value-added tax, or VAT.
Use a payment source that collects and pays it for you, such as Amazon or ClickBank, if you don’t want the inconvenience.
Types of Business Licenses
For a business to be legal and be able to operate, it must have the necessary licenses. The type and quality differ by industry and location.
For example, this encompasses local and regional licenses from the state, city, and perhaps county. Additionally, promises from recognized agencies in the industry may be a pertinent stipulation.
Abide by the local government regulations and be certain that you also check for special licenses that may be critical.
Also, registering with federal agencies and keeping federal permits for doing lawful business is necessary for companies subject to regulatory control.
If you are doing business in one of the following industries, SBA indicates that you need to apply for a federal business license or permit:
Local Licenses and Permits
1. Local Licenses and Permits
2. Zoning and Land Use Permits
3. Building permits
4. Fire department permit
5. Health Licenses and Permits
6. Signage Licenses and Permits
7. Environmental Licenses and Permits
State Licenses and Permits
1. State Business Operating License
2. Seller’s Licenses
3. Tax Registration and Permits
4. Occupational Licenses
Federal Licenses and Permits
1. Agriculture
2. Alcohol
3. Aviation
4. Firearms, Ammunition, and Explosives
5. Fish and Wildlife
6. Shipping
7. Mining, Drilling, and Nuclear Power
8. Radio and Television
9. Transportation and Logistics
Licenses and Permits for Home-Based Businesses
1. Home Occupation Permit
2. Property Use and Zoning Permits
3. General Business Licenses and Permits
In most cases, you can anticipate paying a processing or filing fee in addition to the cost of the license.
Depending on your business and location, licenses might cost anything from $10 to $5,000.
Additionally, if the license you require has an expiration date, you will be responsible for any renewal payments when your license expires.
It may take several days to several weeks to obtain a business license, most time between 1 week to 2 weeks which is about 14 working days.
It might sometimes take longer or fewer days depending on several factors, namely your state and the specific permit you need.
For you to figure out the exact number of days yours will take, you have to always keep in contact with the officers in charge.