Getting Your Business Started With a License

In this booming economy, entrepreneurs and proprietorships outdo themselves and each other in the market. It all starts with an idea. An idea that can utilize the demands of people and channel it by offering them a service or a product accordingly. You might have had a few by now too. You can either take pride in the fact that your ingenious mind could potentially make you a millionaire someday, or take a leap of faith.

For those starting out their business, their first priority is usually to legitimize their business setting as quickly as possible and as much as possible. A business license is the official document that certifies your company and therefore, allows it to operate within a particular jurisdiction. It is a registration document that you must have before you begin conducting your business in a city or county.

Business Started With a License

Why a business license is important

A business license not only legitimizes your business in the eyes of the venders, contractors, state and the government, but also allows the owner to carry out the annual tax return filing process. From the local government’s point of view, the issuing of business licenses will also help them control the distribution of various kinds of inappropriately placed businesses.

For example, having a drug store or a noisy auto repair shop right next to a school is obviously a bad idea. You will only be issued a license for your business if it is not being disruptive to the people or locations around it. This is not the only thing that your city’s license department will consider though.

When you apply for a license for your business incorporation, the local license department will check the location you want to open your business to see whether that area is zoned for the purpose of your business and has an appropriate parking space allotted to prevent traffic problems.

Business license requirements can vary from city to city and state to state, so when you intend to establish your business in a particular county, you should call up the local licensing bureau and ask their licensing requirements along with the application procedure. They’d be happy to walk you through the process. Calling up beforehand will make sure you have enough time to gather all the required documents and paperwork in one place, before you begin the application procedure.

Types of business silences

There are two classifications in business licenses: the federal license, and the state license. If your business belongs to a very specialized industry that carries a high level of liability, then you would probably require a federal license. Liquor stores, fisheries and gun shops need the federal license to operate. The state government on the other hand, always requires a business license/state license from the business you intend to open within its jurisdiction. Rules and processes can vary for state license depending on the structure and location of your business. You will have to look up and learn more about whether the business you want to operate in the particular city is allowed, especially in busy cities.

About the author


Muhammad Aamir is an avid learner and online marketing consulting. Including guest blogger, blog posts sailing and link building. Social Profiles:
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