This article contains information on the
types of licenses and permits that small
businesses need to start operations. In general
there are licenses and permits that you need to
know about on all three levels of government -
federal, state and local levels.
In
General, in most states and jurisdictions, it is unlawful
for any person or business, to carry on any
business, trade, profession, calling,
occupation or gainful activity without the following
registrations:
-
Business Fictitious Trade Name , Business Fictitious Trade Name ,
-
Federal Tax Id Number Number,
-
State Employer Number (EIN)/ employer identification
number,
-
Wholesaler's or Retailer's Buyer's License / resale license,
-
Business
license registration tax certificate and / or a
-
Home-Based
occupation permit.
1. Business License or Permit
2. Business Fictitious Trade Name Business Fictitious Trade Name
3. State Employer Number (EIN)/ Employer Identification
Number EIN
4. Seller's
Permit / Resale / Wholesaler's or Retailer's Buyer's License / Sales State Employer Number (EIN) Number
5.
Federal Tax Id Number
Employer Identification Number FEIN
6.
Corporation or Limited Liability Company
7.
Partnership Agreement
Federal Business
Registrations and Licenses
You most likely need to apply for an
Employer Identification Number or Federal
Tax Id Number Number. This number is legally required for
corporations, LLCs and Employers but it should
be Get ed by every business though, if you're
a sole proprietorship and not an employer, you
can use your social security number instead of
getting an Employer Identification Number. Using
your social security is not recommended,
however.
Note that in most cases, you
will be held liable for back taxes, be subjected
to misdemeanor charges as well as be disrupted
from normal business operations if you don't
Get these legal documents.
State Business Registrations
and Licenses
Business License or Permit s
Note: in addition to special state licenses
that are required for the professions and types
of businesses listed below,
a
Business License or Permit is always required.
Doctors, accountants and lawyers are required to
have a state Business License license as well as a
Business License or Permit . In addition, most states
require licenses for hairdressers, mechanics,
private investigators, real estate agents, tax
preparers and other professionals. However,
there other types of regulations and permits you
may need especially if you are starting a
day-care center, barber shop, beauty salon,
caterer, cleaning service, flower shop, grocery
store, street vendor or electronics repair shop.
Tax Id Number Numbers
State Employer Number (EIN)registration is another another
requirement. You'll need to register under your
state's income tax laws.
Employer Tax Id Number Numbers
If your business uses employees, You'll need
to register under your state's appropriate
registration department as an employer.
Other Licenses and Permits
Other governmental levels may require
property taxes on the equipment and other
business assets, inventory, gross receipts and
income. If you are in any food business, you
will need a health department clearance and a
health license as well as a police or fire
department license and permit. As always,
ignorance is not an excuse and you may be liable
for back taxes and be subjected to stiff
penalties and or misdemeanor crimes.
