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[B1046]Business Licenses And Permits

by Searchrankpros, Sea

Without these permits and licenses, your business can face fines and even be forced to close its doors until the necessary documents are obtained. Too often, business owners focus on operations and other aspects of the business without thinking of the need for these legalities. Opening a business is an exciting endeavor, and it is understandable that the focus is on the business itself and the potential for profits and success. However, you need to ensure that your business is legally operable. Otherwise you won't succeed no matter how much money you make.

The type of permit that you need, as well as the cost of the permit, will be a part of your business's annual budget, and should be calculated into your when you are planning your business. Depending on where you're located, you'll have to consult with the city, county, and state departments to find out which licenses are required, and if you operate in more than one location, you'll need to get the right license for each location.

The most common types of licenses for businesses include:

-Licenses for alcohol, tobacco, lottery, gasoline, diesel, and firearms sales
-Licenses based on occupation (i.e. Nurses, Skilled Workers, Insurance Agents, etc.)

Your location might also require you to obtain the types of licenses listed below:

Business License
Since a business provides revenue to a specific locality, it's essential to have a business license. You also need to be aware of zoning regulations when applying for a , because these regulations might limit your options for a business location.

Fire Department Permit
This is usually required mostly of bars, stores, and restaurants that have large crowds. The fire department will determine that all fire exits are appropriate, and that all fire safety measures are in place, as well as determining that the site isn't a fire hazard.

Health Department Permit
Restaurants, Bakeries, and other food service businesses are subject to regular health inspections and must pass in order to operate their business.

Occupancy Permit
Bars, hotels, restaurants, and convention centers are all subject to a limit on the number of people allowed at any one time. An occupancy permit will determine, based on the size of the building, a safe number of people allowed at any one time.

Starting a business may seem like fun, but it is also a lot of work. There are many legalities that need to be considered and accommodated when it comes to business ownership. If you fail to obtain proper licensure and permits, you could face a lot of ramifications for your actions. By taking the time to obtain these documents, you'll save yourself stress in the end.

The last thing you want to find out after starting your business is that you have failed to conform to the law by not filing for the right permits for your business. Before establishing a small business, you should pay attention to your town, city, and county regulations. In most locations, every business needs a basic license which is sometimes called a tax registration certificate. Apart from this, other permits and licenses may be required as well.

Business licenses and permits are issued at all levels of government - federal, state and local (city, county, or town). Depending upon the kind of business you are running, you may need to apply for licenses at multiple levels. For example, if you decide to open a restaurant in the city of San Francisco, you will need a business license and health permit from the city of San Francisco, sales tax license from the state of California and a federal tax ID number from the U.S. federal government.

Not sure what kind of license or permit you need for your business venture? Well, as usual, we've made it simple for you. Below is a quick checklist covering the most common federal, state, and local licenses and permits you may need to acquire before commencing business:

Business License – This is the basic license that you will need to operate a business legally. If the business is located within city limits, a license must be obtained from the city; if outside, it is procured from the county. Contact your city's business license department to file an application. Also remember that you need to pay an annual fee.

Federal Employer Identification Number (EIN) – Also known as a tax identification number, this is required for almost all types of businesses. Depending on where your business is located, you may also need to acquire a similar tax identification number from your state.

Zoning and Land Use Permits – Before you start your business, you have to find out if the space you are going to use is properly zoned for the kind of usage that is planned. You may need a zoning compliance permit. Zoning laws regulate off-street parking, waste disposal, and the size, construction and placement of signs.

Health Department Permits – If your business involves the preparation and/or sale of food, you will need a county health department permit. Note that the health department will inspect your facilities before issuing one.

Sales Tax License – This license is essential before you can sell almost any product or service in any state.

Fire Department Permits – Businesses such as restaurants, day-care centers or any other that attract a large crowd need a permit from the fire department.

Special State-Issued Business Licenses or Permits – You may need special licenses if your business involves the sale of certain types of products including liquor, lottery tickets, gasoline and firearms.

Special State-Issued Occupational / Professional Licenses – In many states, people in certain occupations must have licenses or occupational permits. State licensing is typically required for auto mechanics, plumbers, electricians, building contractors, collection agents, insurance agents, real estate brokers, repossessors and personal service providers (beauticians, cosmetologists, therapists and masseurs). If you are thinking of starting any of these businesses, you will have to pass state examinations in order to get the permit. Contact your state government offices to get a complete list of occupations that require licensing.

Special Federal Business Licenses or Permits – You may also require special business licenses from the federal government if your business involves investment advising, drug manufacturing, preparation of meat products, broadcasting, manufacturing tobacco, alcohol or firearms.

Licensing and permit requirements for small businesses vary from state to state; it is therefore a good idea for you to contact your state and local government to determine the specific obligations for your new business.

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