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Most businesses needs one or more federal, state or local licenses or permits to operate. Licenses can range from a basic operating license to very specific permits (e.g. a permit to sell alcohol). Regulations vary by industry, state and locality, so it's very important to understand the licensing rules where your business is located. Not complying with licensing and permitting regulations can lead to expensive fines and put your business at serious risk.

Business License

It all depends on what business you are engaged in and whether it is regulated in your area and whether a license or permits is therefore required.

For example a retail store does not need a license to do retail business in most locals, It does need an occupancy certificate in most municipalities but not a license. It will usually need a sales tax certificate for tax purposes. Now if that store wants to sell Alcoholic Beverages then obviously it will also need a Liquor license but still, that's not a business license.

If you wanna sell real estate for example you will likely need a real estate license which is a professional license, not a business license.

Business is regulated on many levels, National, State and Local. Rules will vary widely depending on where you live. Texas for example has never required a Contractors License while California does.

Say for example you are and Electrical Contractor in Texas, OK you need an Electricians professional license but not a business license, while in some other states they may require you have both.

Say you wanna come up with some unique catchy Name for your business so you decide to call it "Amazing Worldwide Widgets" OK, Most regulations require that you register the name so that they will know who is moving all those widgets in their area. Again that is not a Business License it's just a certificate of registration of an assumed business name.

It's always best to research the line of business in which you would like to engage. The Onus is always on the business and it's owners to make sure they carry all required licenses and permits.

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14y ago

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