Small Business License Information

Starting and running a small business is more than having a dream and making it happen. Starting a small business may require that you obtain county, state and federal licenses, permits and other requirements. Learn where to find the state and federal requirements for obtaining a license for your small business. Then take the steps necessary to apply for all of the licenses you need to start and run your small business legally.

State License Requirements

County and state license requirements can vary, but in general, every business needs a license to operate. A state business license is what permits you to operate a business within the state where your business is located. The state license serves as the primary document required for tax purposes.

Occupational & Special Licenses

Certain types of occupations are also required to obtain an occupational license in addition to the business license. An occupational license permits an individual to perform their duties and functions for a certain industry. Most states require building contractors, physicians, appraisers, accountants, barbers, real estate agents, auctioneers, private investigators, private security guards, funeral directors, bill collectors and cosmetologists to obtain occupational licenses in addition to a business license if they are running their own business.

The other requirement for a state license may be based on the product you're selling rather than the service you're providing. For example, any businesses associated with the sale of liquor, lottery tickets, gasoline or firearms are required to obtain a special state-issued license.

If the state in which you're operating your small business has a state tax, then you may be required to obtain an employer identification number (EIN) as well, which can be obtained from your state Department of Revenue or Treasury Department.

Intellectual property such as patents, trademarks, trade names and copyrights also require registration by the Federal Government.

Federal License Requirements

It's not only state requirements that you have to abide by for obtaining business, occupational and other special licenses involved in getting your small business license. You also have to abide by federal laws and requirements.

Unless you're operating as a sole proprietor, federal laws require small businesses to obtain an EIN. For more information or to find out if you're required to obtain an EIN, you can contact the Internal Revenue Service (IRS) at www.irs.gov.

For the most part, small businesses are not required to obtain a federal business license unless the business is involved in investment advising, prescription drug manufacturing, preparing meat products, broadcasting, ground transportation services or selling alcohol, tobacco or firearms.

Where to Get a License

In obtaining a state license or occupational license, the best place to start is with the city clerk at your local city hall or county courthouse. You can visit in person or contact them by phone. You can obtain the address and telephone information for these offices on the municipal government office pages on your local phone book. Business.gov also provides you with a way to search for small business licensing office by your city, state and type of business at http://www.business.gov/register/licenses-and-permits.

Home Based Businesses

Especially when first starting out, many small businesses begin as home-based businesses. Whether or not you can run a small business from your home depends on several factors including the type of business it is, whether or not customers or clients will visit your home for business purposes and the governance of county zoning restrictions. Again, in order to open and operate a small business from your home and in accordance with the law, contact the county clerk or city hall in your county.

References

• My Own Business
• Small Business Administration
• Business.gov Licenses & Permits