Do you need to register your business name?
Choosing and registering your business name is often the first step to legally operating your business. If you’re running your business as a sole proprietorship or partnership, you can choose a business name or “doing business as” (DBA) name.
Some states require DBA name filings to be made public for the protection of consumers conducting business with the entity. Other states do not require the registration of DBA names.
If you chose a business name or DBA different from your personal name, you may need to register it with the county clerk’s office or with your state government, depending on where your business is located.
Operating under your name
You can skip the process if you are operating under your own name. In some states, you can also avoid filing a DBA if you’re able to use your name plus a description of your product or service
Do you need an employee identification number?
An Employer Identification Number (EIN)—also known as a Federal Tax Identification Number or simply a tax identification number—is used to identify a business entity.
An EIN is not required for sole proprietorships with no employees. However, a business operating under this structure may still want to apply for one in order to keep personal and business taxes separate.
Most states require a state tax identification number if your business is going to hire employees or sell goods or services.
Do you need zoning or building permits?
Local zoning regulations determine where certain types of businesses can and cannot operate. If your business is in a structure previously used for commercial purposes, then, in most cases, zoning regulations will not be a problem.
Do you need health department permits?
You will likely need a local health permit if your business involves the preparation, handling or distribution of food. Health permits are typically part of the domain of a county health department, and you should check with them to learn about local requirements.
Do you need a sales tax license?
If your business sells goods or services—whether online or offline—and your state requires you to collect sales tax, you will likely be required to obtain a sales tax license (also called a seller’s permit). States generally require businesses to pay collected sales taxes on a quarterly or monthly basis.
Do you need a fire permit?
You may be required to get a permit from your local fire department if your business (1) uses any flammable materials, or (2) is open to customers or the public more generally.
In some cities, you must secure this permit before you open for business. Other jurisdictions don’t require permits but do perform periodic inspections of your business to see if you meet fire safety regulations.
Do you need a sign permit?
Some jurisdictions require businesses to obtain a permit before putting up a sign. Local regulations may also stipulate very specific requirements about the size of the sign, the lighting of the sign and where the sign may be located. Some towns have banned neon signage altogether.
Do you need an environmental permit?
Many jurisdictions require certain businesses to obtain special permits related to pollution control. Suppose your business operation involves burning material, using products that produce gas (such as paint sprayers), or in any other way discharging a pollutant into the air or water. In that case, you will likely need to obtain a special permit from a city or county agency.
Do you need an occupational license?
Practitioners of certain occupations—and the businesses they operate or are employed by—are required to have occupational licenses granted by the state before they can conduct business. Issuance of these licenses generally requires the applicant to show certain skills or training. States usually require licensing for anyone who provides personal services, including:
– Medical care
– Law
– Auto repair
– Accounting
– Plumbing
– Electrical work
– Real estate
– Cosmetology
Do you need a license or permit for an online or home-based business?
If you run an online or home-based business, you should assume that you’re operating under the exact regulatory requirements as a brick-and-mortar business, including:
- Forming a business entity and registering the name with the state.
- Recall that businesses operating as sole proprietorships don’t need to register at the state level.
- Registering with the state government to collect and remit sales tax.
- Although this requirement only applies in states that have a sales tax and only for online businesses with a physical presence (or nexus).
- Obtaining any relevant occupational licenses from the state government
How much do business licenses cost?
A single business license can cost between $50–$400. Most business licenses need to be renewed every 1–5 years, depending on the rules set by the agency that issued it. Renewal is often slightly lower than or half the cost of the initial licensing fee.
How to apply for a business license
You can get started on business license applications as soon as you’re ready to launch your new business. Your city hall can help you obtain general business licenses at a local level. For state, federal, or professional licensing, you can visit the websites of the agencies in charge of issuing the license you’re seeking. These resources can help you understand licensing requirements and get you access to all the paperwork you need.
How long does it take to get a licence?
The process can take anywhere from days to months. Along with the type of business you own, your jurisdiction determines how long it will take to get a license. Some states grant business licenses within a week, while others take three to four weeks.
Your industry also determines how long you can expect to wait for your business license.
What comes first, forming an LLC or obtaining a business license?
There are common business entities in all states, but some business owners prefer to be a sole proprietor. If you wish to remain a sole proprietor, you need to file a “doing business as” registration, also known as a DBA, with the county clerk. Most counties allow you to do this in person, online or via the mail. Download any required forms from the county clerk’s website if you aren’t going in person.
If you wish to remain a sole proprietor, you need to file a “doing business as” registration, also known as a DBA, with the county clerk.
Follow the secretary of state’s registration process online to file for a corporation or limited liability company.
How do you obtain a business license or permit?
Determine what types of business licenses your company must acquire. When you choose where you will be operating your business and the business activity, it’s time to determine the business licenses you need to apply for.
Take a careful look at the official website of the chosen territory to make it clear
Prepare documents for business license filing. After the determination of required business licenses and permits, you should carefully compile all appropriate documents needed for the application process.
Below are the main documents for a business license application:
A brief description of your business, including:
– the physical location
– the industry
– the planned activities
– Duplicates of certified corporate records, such as
– certificate of incorporation
– corporate bylaws
A proof stating your compliances with the jurisdiction’s requirements regarding the tax compliances and other legal regulations
Do you need to talk to an expert?
Chances are, yes. Unless you’re an expert, it’s wise to consult a lawyer or accountant before launching your business to ensure you’ve fulfilled all of the relevant regulatory requirements. Even veteran entrepreneurs are often unsure about which city, county, state, and federal agencies they have to contact before opening day.
