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| Business Licenses and Permits |
When beginning a new business venture one of the most critical areas you should focus on in being compliant with local, state and federal laws.
One of the most commonly overlooked areas of compliance for entrepreneurs is obtaining business licenses and permits. If you are reading this and were unaware of the need for obtaining a license or permit, you are not alone. It's very easy to ignore or neglect the need for a license or permit, but it's vital to the success of your business that you insure you are compliant.
Some of the more common types of licenses or permits are a business license, a fire department permit, and pollution control permits. Below is added detail about each of them as well as a few more common ones.
Business License
A business license simply grants you the right to conduct business in the desired city. To obtain a business license simply contact the business license department for your city. After completing the application the local zoning committee will validate that your business desire to operate in a properly zoned location relative to your company's operations.
Zoning ordinances are put in place to outline what specific areas within a municipality you can operate your particular business. You can only operate your business in areas specifically zoned for your business type unless you obtain a variance or conditional-use permit. In order to acquire a variance, you will have to go before your local zoning committee and request one. Don't get discouraged because getting a variance is not as difficult as it may seem.
For more information about the specific requirements for obtaining a business license or a variance contact your local business license department and they will be able to help you determine what is best for your business.
Fire Department Permit
Another important permit is a fire department permit. If your place of business will be open to the general public or if you or any of your employees will be working with any flammable materials then you will need to obtain such a permit. Your local ordinances may or may not require you to specifically have a permit. Some municipalities simply require your business to pass regularly scheduled inspections of your business to ensure that your business is up to code. The goal of this permit is to save lives in the event of an emergency. It is important that you make sure that your business satisfies all requirements in this area.
Sign Permit
Did you realize that you might even have to obtain a permit for the sign on your business? This does not apply in all cases, but there are some locations where the sign you choose for your business may be confined by size, location and even the lighting and type of sign. Before you take the leap and purchase a sign for your business, be sure to clearly understand what the local regulations are.
County Permits
County permits are similar to business licenses except there are governed by government regulators instead of city officials. In fact, county officials usually call for similar forms of permits and licenses as those in cities do. You should look to obtain a county permit if your business is located outside of a city. Overall, county permits and the regulations that govern them are usually less strict than those of cities.
State Licenses
There are certain instances where a company will have to obtain a license at the state level. This is primarily based on the occupation. In the particular cases the state usually has standardized testing processing that the business owner must complete before they are issued a permit and allowed to carry out business. Some examples of businesses that usually require state licensing are plumbers, electricians, insurance agents, and barbers. Be sure to contact your local state government to determine if your business is one that requires licensing.
Federal Licenses
Most businesses will not be required get a federal license. There are several businesses that do have to be licensed federally to operate. Some of those businesses are meat processors, radio and TV stations, and investment advisory services. If you want to determine if your business needs a federal license to operate, simply contact the Federal Trade Commission and they can provide you with a definitive answer.
Sales Tax License
For almost all situations, it is a requirement that you collect state sales tax on every sale you generate. The amount of sales tax you collect varies from state to state. Therefore it is critical that you determine what the regulations are in your state and local area.
You should make obtaining a sales tax license one of the first things you do before generating sales for your business, because it is the law.
Health Department Permits
If you plan to sell food in any form or fashion you must obtain a permit from the health department in order to do so. These permits typically require an onsite inspection by a health inspector as well as a fee. Contact your local health department to determine if you need to obtain this type of permit as well as for instructions on how to get i.
There are numerous other types of permits that you may be required to obtain to legally operate your business. It is up to you to investigate and determine what is required of your business.
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