Business Licenses

Does my Company Need a Business License?

Every business needs licenses and permits. New ventures often run into problems because they haven't thoroughly researched which of these they must have to satisfy their state's legal requirements.

There are different types of licenses one requires to start with, and basically, they fall into three categories: local, state, and federal.

Local Licenses: If you want to start a business in a particular locality or city, a general business license is your starting point. It permits you to operate in that particular city. You may need specialized permits according to your business type, e.g., health permits for food preparation, for example, and sign permits.

State Licenses: For a home-based business, you should be aware that some kinds of businesses are prohibited from operating in certain areas. If still you want to trade in that area and your business is prohibited from it, you can file a petition for a variance. For all this information, contact your county zoning office or local governing body.

Federal Licenses: Those businesses that are governed by federal agencies require federal licenses. The Bureau of Alcohol, tobacco, and firearms and the Securities and Exchange Commission are some examples.

Whichever license you need, you have to be acquainted with the application procedures and requirements. You can contact the appropriate state and local agencies to inquire about these.