How to Obtain a Business License

When you walk into a business, you can usually find a business license hanging on a wall near the front desk or counter. This license is issued by local and state governments in recognition of a company's legal right to provide products and services. In order to obtain a business license, you need to follow a few simple steps and pay an application fee.

Instructions

License Your Business for Legal Operation

1. Locate the assigning body for business licenses in your city and state. Your business may require multiple licenses, depending on the size of your company and the type of products or services you provide. The Small Business Administration provides a list of business license providers in all 50 states (see Resources below).

2. Certify that your building and property follow all municipal codes applicable to your business. A certificate of compliance and occupancy can be filled out through your local government before you apply for a license. This certificate verifies your adherence to zoning ordinances, signage requirements and maximum occupancy limits.

3. Register with your state's revenue service before you obtain a business license. Your company will be assigned a tax-identification number that can be used on a business license application. Updated registration with your state taxation agency also helps to ensure that your business is current on its taxes.

4. Schedule time for a health inspector to investigate your facility before you open for business. In many states, a health-inspection certification is necessary to obtain a general business license. Health inspections also certify the cleanliness and quality of your production processes.

5. Review the fee schedules associated with a business license. Most licenses need to be renewed on a regular basis and fees are based on a number of factors. For example, apartment buildings and nursing homes typically have to pay fees that are based on the number of habitable rooms.

Tips & Warnings

• Consult federal regulations governing your industry to determine whether you need a federal license. For example, companies that deal with the processing of hazardous materials and the production of motor vehicles require licensing from the federal government. Federal business licenses are typically needed to comply with health, safety and interstate commerce regulations.

Resources

• Local business license resources through at SBA.gov