What small business licenses and permits you need can be a confusing issue for new entrepreneurs. In this article, we try to bring out the general pattern and also indicate where you can get required information.
This page comes under the section Small Business in USA.
Federal license is required only for a few industries like:
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The industries mentioned above are monitored by different federal agencies. You would have to approach the concerned agency to obtain required license. To find out the exact requirements for your particular business, you can visit http://www.business.gov/ website. At the site, you will find a form to enter your location and business type and then click a button to find out what licenses you need.
A number known as EIN is required by practically all businesses. (Sole proprietorships can be exempt if they do not employ people.) You would have to apply for an EIN - a tax number - to the Internal Revenue Service (IRS). Even though EIN stands for Employer Identification Number, you would have to apply for it even if you don't employ anybody. EIN is more like a number used by Federal government to identify a business. You can go to the small business section of IRS website for details of EIN and for applying online.
If you want to protect your intellectual property that can take different forms, you would need to register your patent, trademark, copyright, etc with the Federal government. In this case, the best option is to approach and intellectual property lawyer to help you comply with the requirements.
You need a state license to engage in a number of occupations, with physicians, private investigators and private security guards being just few examples. A state license is also needed for certain products, such as liquor, lottery tickets, gasoline and firearms.
States levy sales tax on turnover and some states might also have income taxes. You will need to register your business under relevant state tax laws and obtain a license/tax id.
Other registrations include business name registration with the state if you plan to do business only locally (Federal registration would be required if you plan to operate in a wider area) and registration for unemployment insurance contributions if you employ people.
Many states have established business assistance agencies to help small businesses comply with state requirements. Finding the nearest agency and getting full details would be worth your time in the form of troubles saved later.
Licensing requirements vary from council to council. You might have to obtain a business license to do business in the city or county. If you occupy a building for business purposes, you would have to obtain a Certificate of Occupancy from the council zoning office.
You can find out about licensing requirements by visiting the council office.
Finding all the details and complying with the formalities is a bother. You might feel irked by the time spent on these when you are eager to start your business. However, trying to save this bother and doing business without needed licenses could lead to far greater trouble. You might even have to stop your business that has begun to pick up momentum, in addition to paying heavy fines and wasting far more time.
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