Business entrepreneurs must require a business license in the US to run their commercial activities legally. You must make sure you have obtained or at least applied for business licenses before gearing up your startup. But, you might be confused about what license category your business falls into because there are different types of business licenses in the States. SG INC CPA helps small businesses with licenses. So, you don’t need to go around because we have organized everything under this blog for your information.
What is the Importance of Business Licenses
If you plan to start a business, you have discovered a lot to do at this stage, such as applying for business licenses. It ranges from collecting sales tax to joining a regulated industry; the process takes several steps and may need to be more fun. However, the government-issued permits that allow you to sell products or provide services are very important because:
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- Businesses need the proper licenses to get closed down.
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- Imposing fines and penalties to punish those who run unlicensed businesses.
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- Your bank accounts with personal liability protection are at stake.
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- Cause of Ill-reputation of business
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- A corporation, limited partnership, or LLC owner is in danger.
Thus, it is not encouraged when business owners operate without a small business license. Having a business license and other authority documents in your hand is an important milestone, so follow our advice on how to get a small business license. SG INC CPA’s license experts will usher you in processing your business license in no time.
What are the Categories of Licenses and Permits?
Whereas the categories of business licenses, there are many. State or local governments issue most licenses, and in some cases, states require you to have a general license. In specific cases, local municipalities also require you to have a specialized industry permit.
We can only give a general overview because the process varies by state, so check with local licensing agencies for specifics. We will provide reliable company license advisory services to entrepreneurs and professionals.
State and Occupational Licenses
All companies must have a general state business or operational license, and some states require you to have a locally incorporated LLC first. You may require a for certain specialty professions such as:
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- Doctors
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- Electricians
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- Lawyers
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- Paramedics and Nurses
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- Skilled Workers
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- Teachers
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- Dentists
So, you will need to pass a qualifying exam and pay an additional application fee, after which you’ll occasionally renew this license. Generally, paying around a hundred dollars will get you in the license queue while proving you meet continuing education requirements.
Industry Specific Licenses
The industry-specific license also varies between states and is needed for beauty salons, childcare facilities, restaurants, and more. This includes licenses to do specific activities like selling food or having a certain number of clients. In addition to individual licenses for professionally trained employees, federal licenses and permits are usually not needed for small businesses.
However, you need to contact the local licensing office to ask, and if they point toward the feds, you might want to get qualified legal help. We have all the answers to your queries and solutions to your business licensing needs.
Federal Licenses and Hazmat Permits
There is another category of federal licenses for specific businesses. These businesses are nationally-regulated industries, including airlines, alcohol producers, and agriculture companies. Note that a liquor license might be state-regulated, but selling large quantities across a border would require a federal permit.
Hazmat Permits
Some types of business licenses are Hazmat permits or environmental licenses. The federal EPA and state agencies require you to have such a small business license if you own transport, store, or handle hazardous materials. Companies that pick up trash, medical labs, oil companies, and water treatment facilities all need this license. They also need to pay certain fees differing based on material type and where the work is being done.
Other Types of Permits
A Doing Business as (DBA) license also allows you to operate under a different name than listed on your company formation documents. A sales license or sales permit grants you a license to sell physical items and add the applicable tax amount to what the customer pays, which can be automated by accounting apps.
Your state’s revenue department or tax authorities issue sales tax permits and a sales tax ID number for free or less than twenty dollars annually. Business license types also have detailed instructions for collecting the taxes plus a reporting schedule.
Home Occupation Permits and Zoning Permits
A home occupation permit can help you avoid fines or legal trouble when running a business from home. The cost varies by state and might include a commercial signed permit or zoning permit.
Signed Permit
Signed permits are for placing a business sign at your home or commercial lot with a cost generally less than $300. The permit may require a copy of any property surveys or authorization from the property owner.
Zoning Permit
Zoning permits allow you to operate a business under local zoning laws and conduct construction within city limits. Or remodel a space into a business lot.
Health Permits
Health permits also fall under the category of business licenses. These are mandatory if your business sells products or services humans consume or touch. Even small business licenses in California are obvious for restaurants, bakeries, tattoo parlors, and beauty salons. The state health department issues the permit if a business meets certain minimum health requirements.
Where to Apply For Business License and How?
With all the different types of business licenses, the next step is to find where to apply for each. In general, sales tax permits come from the state Department of Revenue, while general business licenses come from either the secretary of state or a local licensing body like the Department of Commerce. City officials issue zoning and health and sign permits, while a federal employer identification number (EIN) comes from the IRS.
How Long It Takes For a Business License?
Average application times range from several business days to six months, and some agencies offer expedited service for a fee. However, an exam or inspection may delay the process. Our experts assist small businesses in business license preparation and case filing around Dallas, TX, and Milpitas, CA.
So, we apply for business permits that regulate specific business activities before applying for the general business license, which allows you to operate the business.
Application Process and Tips
SG INC CPA urges you to always check your local state licensing department for the most recent info. We keep you updated with the latest IRS license updates through our blogs. You may learn what licenses you need and where to get them.
Well, you must have grasped how to get a small business license and where to apply for a business license. We help small enterprises and professionals prepare for small business licenses in California and beyond.
Consider Professional Help
The licensing process demands a mindful concentration so that your business is formed as a legal entity before you open for customers. For this, our business advisors assist entrepreneurs and professionals in business descriptions and planned activities.
We also analyze proof you own physical premises and copies of business documents such as articles of organization or an EIN so that no objection would bounce back. Our team of experts also helps with proof of state or local tax status, such as sales tax permits or employer registration, and lists of owners and managers plus their contact information.
Conclusion
Business is worth nothing if run without a license. So, we believe after getting to know about the types of business licenses, you can get your license issued. However, if you get stuck anywhere, you can check out more helpful hints from us. SG INC CPA is open to every business and professional in Texas and California. Our remote license preparation services help you regardless of your location around the States.