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How To Get A Business License In 8 Steps?

How To Get A Business License In 8 Steps

Both personal initiative and large-entity startups require a business license. Business licensing involves legitimate compliance with various government regulations. For example, let’s say an entrepreneur owns a plumbing company and has an LLC in Texas. He might think he’s ready to start. However, there are other requirements depending on the location of the township, city, and State. SG INC CPA—a reliable tax solution firm that helps you find the best tips on how to get a business license; we will share the ways to get a business license.

Why Do You Need a Business License?

Different government entities have their own rules for getting a business license rules. These license parameters can stack on each other to make the process complex. For instance, you might need a specific permit to obtain a business license in California. It also plumbs services that are required in another county or State.

Let’s fumble out the essential information on how to get a business license in the US.

1. Pick a Name for Your Business

The first thing you need to do when you kick-start your business is to pick a business name. This is the most important thing when an entrepreneur is just getting to start a business. You should come up with something unique or different if you are trying to build a brand. For example, the woman who started Spanx created that name and protected it before launching it to the public.

What to Beware of Business Name?

You must ensure your business name is unique. It must not match with businesses other than yours. SG INC CPA advises you to search for your desired or planned trademark or brand name on Google or the US Patent and Trademark Office website. It is also mandatory to look for Facebook and other social media platforms.

2. Open a Business Bank Account

The next step is about the bank account. You must open a business bank account for business purposes. The existence of a bank account is integral to tracking all your business transactions. It will show any income you may earn. At this point, you don’t require an employer identification number from the IRS. You can use your Social Security number to open an account with the DBA in your name.

Deposit some personal money into that account to pay for startup costs. You can also receive affiliate sales and other income into this account.

3. Incorporate Your Business

The next step involves the incorporation of business validation. It is your idea to start earning some revenue by incorporating your business. SG INC CPA has a useful blog on Business Licenses in California with various legal entities. You can check that out to figure out which entity (LLC, corporation, etc.) is right for you.

4. Check for Required Licenses

Business owners in the US must have the must-have documents for registering a business or company in the US. You don’t need any special business license in your State or locality. Rather, some states, cities, or counties may require a business license as per local laws. You can register your business with the local taxing authority. This is especially true if you are operating a company or entrepreneurial startup in your home. For example, as a lawyer, you must apply for a privilege license each year.

5. Get Your Contracts in Place

SG INC CPA explains the rules for putting contracts in place to ensure you have all necessary contracts. You should hire independent contractors if you need a Business License In California. Licensing might be with a web-based service for client contracts, with contractor agreements alongside terms and conditions. You may also have a privacy policy on your website.

6. Purchase Adequate Insurance

Adequate insurance is mandatory for a business license. This might be an umbrella policy or a general liability policy. You may also need workers’ compensation insurance if you have full-time employees. You must check the Business License In California requirements to open a tax-compliant business in CA.

7. Build Your Professional Team

You will have to start building your professional team as your business grows. This could involve hiring an administrative assistant or a virtual assistant for your website or social media. Also, hire a local marketing assistant to help with events and networking.

8. Submit to Authorities and Wait

It is time to wait and be ready to receive a communication from the license issuing authorities. It takes a week or a couple of days to get your business license issued.


SG INC CPA has provided effective tips on how to get a business license. You will be able to be in a position to get a business license by following these eight tips. Our professional CPAs and tax experts will help you get your business license in California. However, you can also hire our virtual consultancy services from anywhere in the US.

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