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Step 1
Start by determining what type of company you will be running, either a corporation or a sole proprietorship. If you decide to incorporate, this will need to be completed before you obtain a free business license. If you will be running a sole proprietorship, you can proceed to the next step.
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Step 2
Visit your state's website. Each website will have a different method of organization, but typically you will want to click on the section for businesses. This section will contain a variety of different information to assist you in preparing documentation for your license.
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Step 3
Put together the forms you will need. Some states will only ask for a copy of your driver's license, Social Security number and business name, while others will need to see more proof of identity. Follow the instructions on your state's website to determine what you need.
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Step 4
Submit your forms online or by mailing them to your state's business office. The turnaround time is generally 14 days or less, provided you included all of the information that is needed to process your request.
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Step 5
Display your business license in a prominent place. Even if you are doing business from home, you will need to frame and display your business license. Keep in mind you might need to renew your license from time to time, depending on your state of residence and the location of your business.
