How to Get a License for a Home-Based Business

A home-based business is an opportunity that is appealing to many people. Working from your home can cut down on transportation expenses and the cost of renting office space elsewhere. Parents may choose to start a home-based business so that they can care for their children without outside help. It is very important to conduct business legally and get a license for your home-based business if your city, county or state requires one.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Business license applications
• Enrollment in workshops or classes, if needed
• Federal Employer Identification Number (EIN)
• Application fees

1. Put together a comprehensive outline about your home-based business explaining what service your business will provide. Having detailed notes about your home-based company will make it easier to fill out applications or answer any questions you may face.
2. Contact your local government to find out what type of license you may need to get for your home-based business. This could be your county courthouse or city or town hall. In addition to providing you with information about licensing, these government offices can usually send you application forms or tell you how to download them.
3. Determine if you need an additional business license at the state or federal level. Some fields, such as family child care providers, must be licensed by the state in which they provide services. Visit your state government's website for details pertaining to your area of business.
4. Read the application forms very carefully before you fill them out. You may find that you need to attend licensing workshops or have continuing education credits before you can get a license for your home-based business.
5. Fulfill any outside requirements that are part of the business licensing process. For example, if you are going to provide child care or sell food products that are made in your home, a health inspector may need to visit your house before you can apply for a license.
6. Apply for an Employer Identification Number (EIN), as you may need to include this number on your business license application. This number is assigned by the federal government to businesses. It is used when you set up business bank accounts and file your taxes.
7. Fill out your business license applications completely and honestly. Make yourself a copy and keep it in a safe place. Attach application fees, if needed, and send promptly to the appropriate office.

Tips & Warnings

• In addition to getting the appropriate licenses for your home-based business, make a call to your local zoning board. Confirm that your residential dwelling can be legally used for business.