How to Obtain a Business License
There are many steps an aspiring or new business owner will need to take on the road to opening a new business, including obtaining a business license. A business license is a simple document that does what its name suggests, which is it offers the business owner the legal right to do business in a certain area. Business licenses are generally regulated by local governmental offices, and the nature of the business license needed will depend on the area the company plans to do business in as well as the type of business that is being opened. The best way to find out detailed information about exactly what type of business license paperwork must be filled out is to contact the local city or county authority who is responsible for registering business licenses in your area.
Finding Out if You Need a License to Open a Business
While it can be easy to assume that your type of business will not need a license, in nearly every case, the opposite is true. Businesses that are required to carry a business license and are not doing so are considered to be in business illegally and are at risk to not only be shut down, but to face prosecution. Especially for home-based businesses, it is tempting to avoid the step of obtaining a business license, but this is a risky choice that is not necessary. Business licenses are generally easy to obtain and will stand you in good stead as you begin to operate your business.
What to Do Before Obtaining a Business License
The first steps you will need to take before obtaining a business will be to gather together all of the information you will need to apply for a business license. This information may vary slightly by state, but generally will include such information as the business contact information, a description of the business, a description of products and services the business will provide, contact information for the principal business contact, and any other local individuals or organizations that the business may be connected with. If you are able to apply for your business license online, it will be easy to gather this information as you need it while you are filling out the forms, but if you need to go into a local office, it can be helpful to have all of the information with you in advance.
How to Obtain a Business License
The first step is to do your research and determine what type of business license, or licenses, you will need to operate your business. Depending on the type of business you plan to open, there may be more or fewer forms you will need to fill out. In addition to a business license, you may also be required to apply for business permits. For certain classes of businesses, you may also be required to apply for a business license and permits at the state or even the federal level. Your local city or county clerk's office should be able to give you all of the information you need about which licenses and permits will be required to legally operate the specific type of business in the manner you wish to operate it. They should also be able to provide you with the forms, or direct you to the state or federal agencies who can provide them to you, if necessary.
What to Do if Denied a Business License
The most common reason for being denied a business license is either an improperly completed form, or conflicts with local home based business or zoning ordinances with which your business may conflict. In these cases, it is important to open a dialogue with officials to see what may be done to work around the issue that is generating the denial. If denied, be sure to ask about a variance or a conditional use permit that may allow you to operate the business.
Cost of Business License
The costs and fees will likely vary depending on the type of business license and permitting you will need to legally open and maintain your business. Some types of business permits are free of fees, while others have a minimal fee, and still others will be more costly. Generally speaking, a business license will also need to be maintained for the duration of your business life and renewed annually, including payment of any relevant renewal fees.
