While there are many duties and tasks to fill your hours and days when starting a business, one of the most important tasks that should be handled early on is to obtain a business license or business permit. Unfortunately, many people overlook this necessity and end up getting in legal trouble because they failed to do what was necessary to obtain a small business license.
If you aren't familiar with the process of how to obtain a business license, we'll provide you with a few tips below. First; however, let's take a look at why it's important to take care of handling your business license permit.
Business permits and business licenses are required by most city, county and state governments. Depending on your situation, you may also be required to obtain a business license or business permit by the Federal government. A local business license, issued by the county or municipal government is a general license that gives you the right to operate a business within the jurisdiction of that county or city. The fees are not usually expensive. This is what you'll need to do in order to complete a business license application.
First, you'll need to make sure that you have all of your business paperwork in order. Make sure that you have your Employer Identification Number, also known as EIN. Next, contact your county government or city hall office to find out exactly what kind of business license you need and to obtain a copy of the business permit application. After you have completed the application and filed it along with the appropriate fee, you'll need to make sure that you stay on top of filing your business permit renewals. They do not automatically renew. This usually must be handled annually.
State business licenses and business permits are required for the operation of business that provide services or products that are regulated by State law. In addition, if your business is required to meet codes or standards, you will most likely be required to obtain a business license. Below are some tips on how to get a business license on the State level. The process for obtaining a State business license is quite similar to obtaining a local business license. You will need to contact the appropriate office to determine what kind of license you need. Your local government may be able to help you with this. For example, if you are looking to obtain a California business license or business permit, you may need to contact the State of California. Beyond this, the process is exactly the same. File the appropriate paperwork and fee; then make sure you file your renewals each year.
One thing to keep in mind regarding business permit and business license is that they are different. While a business license allows you to legally operate a business within a jurisdiction; a business permit regulates safety and structure. For example, you may be required to obtain a business permit to purchase wholesale merchandise for resale, to remodel or build on a commercial site, to legally prepare food in a restaurant or to operate a business out of your home. Each of these situations requires a different type of business permit. Other than this, the procedure for applying for a business permit is almost exactly the same as applying for a business license.
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