Licenses You Need to Start a Business
New businesses are licensed at the state and local level. As a result, the specific licenses and permits vary depending on your location. The type of business matters as well, since some activities require professional/trade licenses or operating permits. However, all state and local licensing follows the same general pattern and requires a similar set of licenses.
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Federal EIN
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The first thing you need is a federal Employer Identification Number. Many states and local governments require you to get the EIN to apply for other permits and licenses.
Business Name
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In most cases you must license or register your business name with your county clerk's office. This is often called registering a fictitious business name.
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Sales Tax ID
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Sometimes called a state business license, the sales and use tax identification number is required for you to sell goods or services.
SUTA
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You must register to pay state unemployment tax (SUTA), with the state agency that oversees unemployment compensation.
Workers' Compensation
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Strictly speaking, this isn't a license, but you must arrange for workers' compensation insurance before you get a business license.
Occupancy
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Local governments require you to have an occupancy license or zoning permit before issuing a business license.
Local Business License
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Business licenses as most people think of them (also called a business tax identification number) are issued by city or county tax offices after you have all other licenses and permits.
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