How to Get a Business License for a Record Company
A business license is the primary method used by local, county and state government to track business data and enforce tax collection. Almost every state and municipality requires some form of license to operate a business, and record companies are no exception.
Other People Are Reading
Things You'll Need
- Basic business information (name, location, and contact details)
- Cash, check, or credit card (to pay license fees)
Instructions
-
-
1
Research the required licenses. Unlike specialty products like alcohol, firearms and lottery tickets, there are no special licensing considerations for record companies in most locations. For this reason, a basic search of the Small Business Administration (SBA) website or a visit to a local city hall may be all the research required.
-
2
Obtain a local municipality license. Unless your record company will be located in an unincorporated portion of your county, chances are good that you will need a local business license issued by your municipality. Although some cities and towns make the license application available online, obtaining a local business license usually requires a visit to city hall. Look for the department of licensure, the department of economic development or the city clerk. In addition to collecting a small fee, these departments should provide the form you need to complete to obtain a license.
-
-
3
Obtain a county license. Just like cities and towns, most counties require a business license in order to run a record company. Since counties operate separately and independently of their constituent cities, they usually maintain separate offices in the local county courthouse. The exact department responsible for issuing business licenses varies from county to county, but the licenses are usually administered by the county clerk. Visit the county clerk's office to fill out the necessary paperwork and pay any fees.
-
4
If necessary, obtain a state license and employer identification number (EIN). States often use business license information for tracking sales tax revenue and regulatory compliance (though many states do so through the county documents obtained in Step 3). Depending on your state, you may or may not be required to obtain a separate state business license and employer identification number. Tennessee, for example, requires neither for a record company while California requires both. The county clerk will be able to provide information on what documents and processes are required.
-
1
Tips & Warnings
If you are unsure how to obtain a license or need assistance starting your business, you may wish to consult your local chapter of the Service Corps of Retired Executives (SCORE).
Do not attempt to conduct business in your record company without a business license. Because licenses are used to track sales tax collection, local tax collectors may levy large fines for conducting unlicensed business.
