What Permits Do I Need to Start a Small Business?
Most small businesses only need a couple of permits to operate legally. Depending on your business type, you may be subject to additional regulations and permit requirements. It is important to find out what permits you will need at the federal, state and local levels, as each has different licensing laws.
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Basic State Licenses
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Business permits are regulated by individual states, so you will need to check with your state's business offices to find out what permits you need. Almost all states require a basic business license for all companies. If your business is retail-based, it is likely you will also need a special retail license. If you plan to serve food or beverages, you will need a separate permit from the local health and safety office. Be sure to check with your state and local business offices for licensing requirements.
Federal EIN
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Almost all businesses need to get an employer identification number, or EIN, from the IRS. It is free, and you can apply for it online or by mail. Your small business needs an EIN if you have employees, operate as a corporation or partnership, file excise tax or have a Keogh plan. You also need an EIN if you do business with trusts, estates, mortgage companies, nonprofit organizations or farmers' cooperatives. If your business does any one of these, you need an EIN.
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Special Federal Permits
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The federal government regulates a number of industries -- if your business is part of these industries, you will need additional permits from the federal government. These industries include agriculture, alcohol and tobacco, aviation, firearms and explosives, fish and wildlife, maritime transportation, mining and drilling, nuclear energy, radio and TV broadcasting and transportation. If you operate in any of these industries, contact the specific regulatory agency to obtain the necessary permits.
Tax and Zoning Permits
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Tax and zoning permits are regulated at the state and local levels. Most states require businesses to collect sales tax. Some cities and local governments collect additional sales tax. You will need a tax permit to legally collect sales tax from customers.
Your business also needs to operate in an appropriately zoned area. If you plan on basing your small business out of your home, some local governments require a special home office permit.
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References
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