Business License
The steps you need to take to register a business
Almost all businesses are required to register and apply for a business license before they can legally start operating. Some businesses may also have to apply for specific licenses and permits that are relevant to their industry.
You may need to register your business for licenses at almost all levels of government. There are local licensing laws, as well as state and federal. Local licenses basically give you permission to operate a business in a certain area; state licenses are for products and services covered under state law and which generally require a particular training or education, such as mechanics and contractors; federal licenses are required for federally monitored products and services such as financial investment or meat preparation.
If you’re a retail business, you’ll probably also have to register for a state sales tax license so that the proper taxes are collected from you and you’re allowed to charge taxes to your customers.
You Can’t Operate Without One
Obtaining a business license is one of the most important steps in your business startup. Without one, you are operating illegally and can be shut down at any time. You may also be liable for fines and other punishments for failing to follow the proper rules and procedures of operating a business.
You may want to get a professional involved in the permit process as you start up your business. A lawyer can guarantee that you properly apply for all the different licenses and permits you may require for your particular business - it would be very unfortunate to lose business (and profit!) because of red tape resulting from the licensing process.
When Buying a Business
If you’re not involved in the start-up of a business and, instead, choose to purchase an existing operation, you should double check all the licensing regulations and requirements. Some licenses are good for a particular period of time and can expire. Other licenses may not be transferable and you’ll have to apply for your own in order to take over the business. Even if the license is transferable, you want to make sure there isn’t a waiting period involved so you can operate smoothly and avoid delays.
