Procedure to Acquire Business Licenses and Permits
License and permit rules varies from state to state. Not all license and permit rules apply to every business, these may differ based on the business structure and nature of your business. License process is not expensive or time consuming. If you follow simple rules it is easier to identify and get business licenses and permits within no time.
Understand your locality
Identify your business zone. You can obtain license from the city from where you run your business. License is mandatory even if you run your business from home. The database of business licenses marking your city is provided online. The information is also available on the US Small Business Administration (SBA) website. All information pertaining to business name, funding, where to get license and details on your locality are available on this website.
Identifying your business code
Before getting a business license you need to identify your business code. Each business code has different application processes similarly to how each city has different license requirements. Whether your business is a corporation or just with an Assumed Business Name (DBA) there is a license requirement for each. SBA website can come handy to identify what licenses apply to your locality.
Forms to fill out
Each state has a huge list of business entity types; identify the right one for your business. Forms are available online and can be easily downloaded. You can collect it from the City Hall as well. Business can be of many types, home based, dealing with hazardous materials, food, medicines, etc. Such businesses may require permits from the concerned departments like Health, Environment Protection Agency, Fire department, etc. Check out information pertaining to fees and other requirements while filling the form.
How to fill forms?
Some states have provision to submit the forms online, while others require you to print the form and hand it over personally. Information such as type of business, name of the business, address, contact information, Federal ID Number and number of employees have to be provided.
The filing fee varies from city to city and also depending on the business license you apply. It can range between $50 and $400 and sometimes even more. There is an additional processing fee as well that the company has to bear.
When will you get the license?
The process can take anywhere between a few days to a couple of weeks. Again this depends upon the nature of your business, business structure and the city from where you apply for the license. Identification proof, fingerprints may be procured while applying for a license.
Follow the rules
You have to abide by the rules of the state while running your business. Some licenses and permits require renewals, while others require regular inspection. Any change in the nature or structure of your business has to be informed to the concerned department and new licenses or permits have to be obtained quickly.
Ensure that your business is a legal entity by applying for appropriate licenses and permits.
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