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Business Licenses and Permits: Getting Your Papers in Order
Business Licenses 101

From Tiare Rath, for About.com

Essentials of Business Licenses

Most city, county and state governments require business licenses. The federal government may also require you to secure special licenses, depending on your industry type. Here are some business licenses you may have to obtain:

  • Local business licenses: Most every business will need a county or city business license to legally operate within those locales. Fees usually are reasonable and the business licenses easy to obtain.

  • State business licenses: These are issued to those selling products or services regulated by state law. There are special state licenses for doctors, lawyers, barbers, mechanics, building contractors and other professionals who require certification. Businesses required to meet state standards or codes, like restaurants and other establishments that serve alcohol, also need state business licensing.

  • Sales tax licenses: Nearly all states require a sales tax license or permit for all retail businesses, which allow you to charge your customers a sales tax.

  • Federal business licenses: Most businesses won’t need federal licensing, but certain highly regulated industries such as drug manufacturing, investment advice, and selling alcohol, tobacco or firearms require the approval of the federal government.

    Essentials of Business Permits

    Many businesses are also required to obtain business permits that generally regulate the safety and appearance of an establishment, as defined by local and/or state laws. There are various business permits you may need, including:

  • Seller's permits: When you'll be purchasing wholesale merchandise for resale.

  • Building permits: If you plan on remodeling or building a commercial space.

  • Health permits: Needed when preparing food as part of your business. Health permits could be required by the state or the county, depending on where you live.

  • Zoning permits: When showing your business site is properly zoned for the use you have in mind.

  • Home occupation permits: If your business is home-based.

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