Business Licenses and Permits

Many businesses will need to obtain at least one license (often several) before they can legally begin their normal daily operations. These licenses can come from either the state, federal, or local government, but they are important regardless of what agency requires them. Federal licenses are usually only imposed by the SEC on large, publicly traded companies or by certain federal bureaus on smaller organizations that deal in highly regulated products (alcohol, tobacco, and firearms). Many states also require specific licenses that only apply to certain types of organizations. Many service businesses, and those who work in them, need state-level licenses to legally operate. The purpose of many of these licenses ensures that these professionals and organizations meet all required certification and training requirements. These types of licenses are required for organizations such as medical practices, food service establishments, and cosmetology related businesses.

Some businesses are also subject to zoning restrictions that are designed to restrict specific types of organizations from operating in certain areas. Zoning problems are typically only an issue for businesses such as liquor and tobacco shops, firearm dealers, nightclubs, and home-based companies. The reason for these permits is to restrict certain activities from occurring in areas where they could likely interfere with the public good.

It is determinate on a number of factors such as your business address, county, industry, etc.

Permits are different from licenses in that they signify your organization’s compliance with a specific local ordinance. Their purpose is to ensure that your business is operating safely and in accordance with community appearance bylaws. Common forms of permits are local health department permits, signage permits, and fire department safety permits.