How To Obtain Business License

By: Jason Cuthbert

Break Studios Contributing Writer

Before you launch the first product or service from your new business venture, make sure you know how to obtain a business license. Unfortunately there is not one simple business license for every industry that you can apply for. The type and number of business license and permits that a company or individual may need varies depending on your state, local municipality, and activity that the business is involved in. Avoiding the regulations regarding proper licensing and permits can lead to serious fines and legal problems. Luckily obtaining a business license is not rocket science. Just follow these steps to license your business on a federal, state, and local level, and you will be well on your way. 

To obtain a business license you will need:

  • Computer
  • Internet 
  • Social security number or tax Identification number
  • Budget for associated fees
  1. Federal business licenses. If your business is regulated or supervised by any federal agency, you will need to apply for the appropriate federal business license. The 11 federally regulated businesses are: agriculture, alcohol beverages, aviation, firearms/ammunition/explosives, fish/wildlife/, commercial fisheries, maritime transportation, mining and drilling, nuclear energy, radio and television broadcasting, and transportation and logistics. Each of these industries has its own licenses.
  2. State business licenses. Every state has its own set requirements for business licenses. Bear in mind that  if you live in a different state then your business is located in, you only need the licenses for your business' state. 
  3. Local business licenses. The most common local licenses and permits you may need to become familiar with include: tax permits, building permit, health permit, as well as zoning, alarm, occupational and signage permits. 

 Keep in mind that after you obtain your appropriate business licenses, you will need to keep copies of them safely filed away, know whether or not they need to be displayed for customers to see, and when they need to be renewed. But there is no reason to let this process dissuade you to move forward. Just remember, you are not the first, or the last business owner to have to obtain business licenses. Just make sure that you do, so you can stay in business. 

Posted on: Sep. 12, 2010