Apply for Your Business License
Applying for a business license is something you should do as soon after you decide to start your business as possible. There are different requirements for getting a business license at the federal, state/city and county levels. Each location is different in those requirements and there are even some locations that may not require you to have a business license, but you need to determine what your business requires by following and completing the steps below.
Find loads of information on starting your business, including applying for a business license by visiting the Small Business Administration (http://www.sba.gov).
There you will find links to help you determine, what if any licensing requirements there are for your business. You’ll be able to determine what type of license your business requires based on the type of business you own. Just a few of the common licenses include:
Basic Business License
This is a basic business license that says you are allowed by law to do business in your locality. Some places require it, others don’t so be sure to check with your local and state taxing authorities to determine your individual case.
Occupational & Professional License
There are certain professions that require you to carry a special license in order to conduct business. Some of these businesses include:
- Real Estate Agents
- Licensing Based On the Type of Products You Sell
One of the biggest reasons a business license is required is for tax purposes. The type of business you run, along with other factors, will determine your tax rates at the state and federal level. It will also help to determine certain taxes, such as sales tax, etc. that you may be exempt from paying.
Trade or Doing Business As (DBA) Name
Many states require a special license if you are a sole proprietor doing business under a name other than your name.
If you have, or plan to in have in the future, employees this is definitely a must to check into. You can find more information about what all is required of you as an employer by checking with your states Department of Revenue or Labor.
A business license is something that, if you’re required to have one, you should acquire as soon as possible. Some states can and will penalize business owners who operate a business without the proper license, so don’t delay in finding out what your business needs. Many states have business workshops to help make certain owners have everything they need in place. Check your state or http://www.sba.gov to find one near you.