How to Get a Business License?

Answer 1

There can be several steps involved in becoming licensed to do business. In some cases, no license of any kind is required. In other cases, becoming fully licensed requires registration with a few different governmental agencies. Business licenses are generally issued by cities to companies engaged in various businesses. Some business licenses, however, are issued by a county or state government agency, or even by the federal government. A business that is involved in activities supervised and regulated by a federal agency will need a license from that federal agency. Contractors are often registered with counties and states, and many states maintain a registrar of contractors. Contractor registration is more involved than registration of other businesses. For most businesses, however, licenses are issued by a city department, and getting such a license is simply a matter of registering the business and its participants with the proper agency. In many cases, all that is needed to create a business identity is an assumed name certificate. This shows that an individual will be doing business under a certain business name. This process may be used by an individual or an LLC or corporation. If a business has employees and pays regular wages, the business must also be registered to withhold taxes by the Internal Revenue Service (IRS). Similar state registration may also be required. An employer will also need an Employer Identification Number, also issued by the IRS. If there are no employees, then these steps will not apply. If the business is selling products, then it will probably be required to collect and pay sales tax, and a permit for this must be obtained from the state.