TYPES OF LOCAL BUSINESS LICENSES AND PERMITS
Business Operating License
This is the most basic type of business license you will need to operate your business in your state. You will need to contact your county, city, or local government to apply for permission to run your business within your town's limits. Additionally, if your new business may be located outside of your closest city limits, you may need to apply for your business license at your county government office.
Zoning and Land Use Permits
After you submitted an application for a business license, the local zoning department will inspect your chosen business location to ensure your type of business and parking near it meet the local zoning codes. If you have opened your company in an area that has already been zoned for the type of business you are in, you won’t need to worry about getting special zoning permits. However, if you start a business in an area not zoned for your business type, you will be required to apply for a variance or conditional-use permit to operate in that area. In order to get a variance, you will need to present your case before the city planning committee and show that your business will not disrupt the lifestyle or safety of the neighborhood where you plan to operate.
Building Permits
If you are opening a business in a completely new building, or the older building you are moving in requires remodeling, renovating, installing new utilities or appliances, you will be required to obtain a building permit from your local government. A building permit is a document confirming that the new building or the changes you do to an existing building are in line with the safety codes and government regulations.
Health Licenses and Permits
If your business is in the food or health industry (like a restaurant, nail salon, or gym) you will need to carefully check what health licenses you will be required for operating. You should contact your local government to check their specific requirements for your business type and what health certifications you will need to obtain and maintain.
Fire Department Permit
A fire department permit is typically issued by a local, county, or city government and serves as permission to be open to the public. A fire department permit is especially mandatory for businesses using inflammatory materials. Depending on the city where you operate your business, you may be required to apply for a small business license from the local fire department before you can open. Some cities do not require a permit but the fire department conducts recurrent inspections and issues safety certificates.
Every business must verify if they need a fire department permit to begin operations but this is especially essential for businesses like hotels, daycare centers, fitness centers, restaurants, etc. to maintain compliant status.
Health Licenses and Permits
If you’re starting a restaurant, operating a cafe, or opening a fitness facility – anything that could relate to people’s health, you'll need to pay close attention to any health licenses that are required to start your business.
Signage Licenses and Permits
It may come as a surprise to you but some places have certain requirements for local business signage. These requirements may be attributed to various elements of your signage, including the size, location, visibility, etc. You may be fined by the local government if your signage does not follow the established signage codes.
Environmental Licenses and Permits
Environmental small business licenses and permits mostly are handled by the state and federal government, but if your business operation is affecting the environment you may want to check what environmental licenses you will need to apply for to be compliant with the law.
TYPES OF STATE BUSINESS LICENSES AND PERMITS
Once you secured all the necessary local licenses and permits, you will need to make sure you also get all the needed permits from the state level. License requirements vary state by state, that’s why you should always check with your state government what licenses or certificate your business will need to obtain to legally operate.
Below is the list of standard state issued licenses and permits a business may need.
State Business Operating License
A state business operating license is primarily required for state tracking purposes. By applying for a state operating license, you get official permission to operate in your state, but also the state government can use your license to track your business revenues for proper taxation.
Tax Registration and Permits
When you establish a company, you need to obtain an Employer Identification Number (EIN). EIN is needed to register with the IRS so that the IRS can identify your business entity and tax it accordingly. Some states also require other tax permits, such as sales tax license, income tax withholding, unemployment insurance tax, and workers' compensation. These requirements vary depending on the state, so you will need to check with your state government to verify their specific rules.
Seller’s Licenses
In some states, you may be required to apply for a special seller’s license depending on the merchandise you are selling. If you are selling firearms, gasoline, liquor, or lottery tickets, your state will most likely require you to have a seller’s license in addition to your basic business license.
Occupational Licenses
In addition to a basic business license, you may be required by your state to obtain a special occupational license for your business. To verify whether you need an occupational license we recommend checking your state government office. Generally, most states require occupational licenses for the following occupations:
• Accountants
• Appraisers
• Collection agents
• Contractors
• Cosmetologists
• Electricians
• Insurance agents
• Mechanics
• Plumbers
• Physicians
• Private auctioneers
• Private investigators
• Private security guards
• Real estate brokers
• Re-possessors
For the exact licensing requirements for your particular occupation, please check with your state government office.
FEDERAL LICENSES AND PERMITS
A majority of small businesses do not require federal licenses, but if you are engaged in certain industries, you may be required to have federal licenses to be in compliance with federal law. Federal licenses are required if you start a business in federally regulated industries, such as:
• Agriculture: If your business imports or transports animals, animal products, biotechnology, etc., you will need to apply for a permit from the United States Department of Agriculture (USDA) to legally operate.
• Alcohol: If you are engaged in manufacturing, transporting, importing, or selling alcohol, you will be required to obtain a license from both state and federal government. To find out the information about a federal alcohol license requirement, you will need to contact the Alcohol and Tobacco Tax and Trade Bureau.
• Cigarette and Tobacco: If your business sells, distributes, imports, or manufactures cigarettes or other tobacco products you will need to obtain appropriate tobacco licensing from the State and Federal government.
• Gambling and Lottery: If your business is engaged in gambling or lottery, you will be required to obtain state and federal lottery licenses.
• Aviation: If your business is engaged in operating or manufacturing and maintaining aircrafts, you will need to acquire special licenses and permits from the federal government. You may also need different licensing from the Federal Aviation Administration to run your business in the aviation industry.
• Ammunition, firearms, and explosives: If you’re in a business that manufactures, deals, or imports firearms, ammunition, or explosives, you need a special license before you start your business.
NEED A BUSINESS LICENSE? WE CAN HELP
Starting a business is exciting but can also be a little intimidating. You will need to keep up with so many details. And that’s why we recommend using the assistance of a professional service company like BizStarter to help you determine which specific permits and licenses you will need to operate your business legally and how to apply for them. Our licensing specialists can guide you through the list of all the required permits for your business, help with filing licensing applications, applying, and keeping track of the renewal of all licenses your business needs to have.
BizStarter will prepare and file all the necessary business license applications and monitor the application and approval process until your company gets all the required permits. We will keep track of tedious paperwork while you focus on getting your business up and running.
