What Licenses and Permits Do I Need to Operate a U.S. Business?
Create a list of the different business licenses and permits your business will. This list will help you keep track of the requirements of federal, state, and local authorities. Below, we’ve listed some common licenses and permits needed to start a business. Not all will apply to your business, but checking which ones you will need will help you remain compliant.
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General business license
Most states require you to apply for a general business license in the state where your business is located, with a few exceptions. For example, the state of Oregon doesn’t have a general business license.
Doing Business As (DBA) permit
If your business is structured as a partnership, LLC, or corporation, you had to choose a name when you filed with the state. If you’re operating a sole proprietorship, your business name is generally the same as your personal name.
You’re free to use other names. Using other names can be helpful to separate different parts of your business if you sell multiple types of products, for example.
However, if you’re using other names, you’ll have to file for a doing business as or DBA permit with your state. Sometimes, this permit is also known as a certificate of assumed name or DBA certificate.
Sales tax permit
If you sell goods and certain services, you’ll most likely need to collect sales tax. It’s required by forty-five states and the District of Columbia.
But not just any business can collect sales tax—you’ll need a permit for it first. You can find out what sales tax business permits are required by checking with your state authorities.
Sometimes, businesses are also required to collect local sales tax. Make sure to check with your local government as well to verify if this is needed for your business. Local sales taxes are required in 38 states.
Zoning permit
Local governments use zoning laws to regulate what types of businesses and homes can go where. Zoning laws may also dictate how buildings can look and how much parking is required for your building. To stay on the right side of the law, you’ll need to comply with these rules.
It may be possible to apply for a “conditional use” or “administrative conditional use” zoning permit if you want to open a business in a place where it’s normally not allowed. You can apply for this special zoning permit with your local authorities.
Home occupation permit
If you’re starting a home business, your local government may require you to get a home occupation permit. These permits are commonly required for home businesses that have customers visiting a residence, but some governments also require home occupation permits for ecommerce businesses that operate solely on the internet.
Professional and occupational licenses
It’s common for many states to regulate certain trades. If you’re a doctor or a lawyer, you’ll need to be licensed in the state you’re working in; you’ll need a commercial driving license if you’re working in the transportation industry.
If you’re able to choose where you’ll be operating your business, it might be worthwhile to look at what professional licenses you’ll need before moving there.
These licenses can be difficult to predict and vary across trades. For example, you’ll need an occupational license to sell automobiles in California.
Health permit
If you’re operating a business that could substantially impact an individual’s health, you might need to get a health permit. Check with your local and state government to see if your business requires health business permits.
Health permits are common if you sell food, such as mail-order macarons or tamales. But it can also be required for other businesses, such as hotels or tattoo studios.
Fire department permit
If you’re opening an in-person storefront or business location, you may also need a fire department permit. This permit depends on the goods you’re selling. For example, if you’re selling or storing flammable objects like gasoline or paint thinner, you’ll need to follow safety regulations and procure a permit. Check with your local fire department to be sure.
Environmental permits
If your business impacts the environment, you may need an environmental permit. For example, auto repair shops and agricultural outlets often work with a large number of pollutants that could impact the environment. Your local or state environmental quality department can point you to the business permits you will need.
There is a wide range of environmental permits, and they depend on what your business’ specific impact is. For example, if you’ll be building a new storefront next to a swamp, you may need a wetlands building permit.
Sign permit
Many cities regulate the types of signs that businesses are allowed to put up. A small farming town might not want to look like the Las Vegas strip, after all.
If you’re operating an in-person storefront or business, make sure to check with your local city to see if you’ll need any sign permits.