Starting a Business – Licensing and Permit Requirements

Permit Requirements

When you are thinking of starting a business you would also need to think about obtaining necessary licenses and permits to run your business successfully. Some licenses and permits are federal, state or local. You must be thinking which one you need, don’t worry, we are here to help you. Below is a list of licenses and permits you would need.

  • General Business Licenses

There are various types of licenses, however, you need the general business license to operate legally almost anywhere. If the business is located within city’s limit, a license should be obtained from the city business license department and if outside the city then from the country.

  • Fire Department Permit

If your business uses any flammable materials or if your premises will be open to the public, you may need to get a permit from your fire department. In some cities and states, this permit should be obtained before opening up the business and in some areas, you do not require permits but simply a periodic inspection to see if you meet fire safety regulations.

  • Federal Tax ID

This one is the most important licenses you need to operate your business. Also known as Employer Identification Number (EIN) is used to identify a business entity. It costs nothing to apply for EIN and you can register for it online as well. Most organisations require this license before conducting business with retailers.

  • Building and Zoning Permit

Whether you will be operating from an existing building or building your own, you should check on the requirements for building and zoning from the city’s council. If you want to do any changes in the building or build a new one you will need a permit that allows construction and an occupancy permit that allows you to take possession. Your contractor should be able to help with these permits.

The above-mentioned are few of the licenses and permits you would need when starting a business.