How Licenses And Permits Help Your Business?
Starting a business comes with loads of responsibilities and in the rush do not forget to give your business the legal status. Business licenses and permits make your business eligible for tax benefits and government grants. The best way to begin your business would be to get license and permits. Anyone who starts a new business must apply for license with the federal, state and local governments depending on the nature of the business.
Knowing about business license and permits
The Business license department of the city has the authority to grant license for your business. It first analyses which zone your business can operate in the city. This task will be handled by the city planning or zoning department. Ensure that your business fits the zone you have selected. Incase your area is not zoned for your business ensure your get a conditional use permit. File a petition with the city planning commission with adequate records that your business will not damage the attributes of the zone.
Tax identification number
Federal Employer Identification Number (EIN) also known as Tax Identification Number is mandatory for all business structures. This has to be acquired from the state and local revenue departments as well.
Assumed business name license
Business that is into selling products or running a shop will have to register with a fictitious name called Doing Business As (dba).
Sales tax license
Business selling products and services have to acquire state tax license. Even home based business is taxable for goods and services. The taxes vary from state to state for the retail level. For retailer, state tax is applicable for each sale. Ensure your license and permits are in place before you open the doors, else it may lead to criminal offense in some states.
Federal Licenses for special business
Federal licenses are given to business that fall into special category like selling animal products, biotechnology products across the state lines, selling alcoholic beverages, aviation, firearms, explosives, commercial fishing, maritime transportation, nuclear energy, mining and drilling, radio and TV broadcasting and operation of oversized vehicles.
Professional or Occupational License issued by the state
Businesses involved in medical care, real estate, tax services, cosmetology, auto repair, insurance sales and attorneys have to apply for professional/occupational license.
Knowing about business permit?
Fire Department Permit
Places frequently accessed by the public, businesses using inflammable items have to acquire license from the fire department. Some cities require you to procure the license before the start of the business while in other places periodic inspections are conducted to ensure if your business is compliant with the safety regulations.
Environmental Department permit
Businesses that discharge industrial waste into the sewers or burning materials or producing gas need to get special permit from the state environmental protection agency. These agencies thrive to protect the environment from air or water pollution.
Health Department Permits
If your business is into manufacturing or sale of food products it is important to get the approvals from the health department. The officials will inspect your premises before granting the permit.
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