Do You Need a Business License to Be Self-Employed?
Many people dream of being self-employed, working from home or near home and being their own bosses. But being self-employed isn't as easy as setting up an office in your bedroom and getting to work. In some cases, you may need a license to own a business, even if you're the only employee.
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Federal Requirements
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According to Business.gov, getting a business license is one of the ten steps that the government recommends when starting a business. However, the federal government mandates that you get a business license only if you are involved in a business that is "supervised and regulated by a federal agency," like transportation, radio and TV broadcasting and the selling of alcohol.
State Requirements
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According to NOLO.com, some states require that all businesses get a license, but most only require licenses for businesses operating in certain fields. They note that doctors, lawyers, nurses and architects usually need a license.
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Local Requirements
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Licensing requirements differ from locality to locality. Some local governments require that all businesses get license, while others don't require licenses for small businesses. Check with your local chamber of commerce to learn how your local government defines "small business."
Zoning
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NOLO.com warns that you should take zoning laws into account before applying for a business license. If you work out of your home, as many self-employed people do, you might have problems if your neighborhood isn't zoned for a home business, even if you're just working from a computer in your bedroom.
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