What Licenses Do You Need When Starting a Business?

Starting a new business can be an incredibly exciting opportunity, but all small business owners should take the extra steps to ensure that they are in legal compliance. Before you can officially do business, you need to have all the right paperwork in order.

Licenses Concerning Operations

This is the most foundational piece of paperwork you’ll need to obtain. A business license allows small business owners to operate their business within a certain geographical boundary. Depending on your location, you may need a local license as well as a state license, and businesses that work within certain industries may need a specialized permit.

Licenses Concerning Location

You could either run your business from home or in town. If you work from home, you may need a home occupation permit in order to be in legal standing. If you plan on running your business elsewhere, the permits you need depend on whether you’re leasing an existing building or wanting to build a new one. Building permits, for example, require an assessment of how you plan on using a plot of land. Whatever you intend to build will have to adhere to city regulatory codes, which include the construction, any renovations, and even the addition of new equipment. If you want to lease an existing building, you won’t need a building permit. You might, however, need a zoning permit. All new businesses may need a zoning permit if the type of business they’re doing is not “zoned” for a particular neighborhood. For example, you may not be able to open a restaurant in the middle of a garment district without a permit from the zoning department. If the neighborhood you’re interested in is already zoned for your industry, then you won’t need a permit.

Public Safety and Environmental Health Licenses

Local regulatory agencies want to ensure that small business owners are conducting business in a safe way that doesn’t harm the public, employees, or the environment. Such regulations might be more stringent than others. Common public safety licenses include fire permits and health licenses. Fire permits exist in order to minimize the possibility of fire or, at the very least, ensure people have easy access to exits in case of emergency. Health licenses, generally relevant to restaurants, ensure that food is being handled in a safe, hygienic manner. Environmental permits come in many forms, but at their foundation, you need to make sure you are not contributing to excess pollution.

This gives you an idea of the scope of licenses, but check in with your local and state government to figure out exactly what you need.

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