Do I Need A Business License?

If you are making a new investment, you probably ask yourself: Do I need a business license?

The answer is simple: If by the nature of your business, your company will operate from a physical place, you need a business license. But, if you have an online store and do not run through a physical location, then you don’t need a business license. The number of these business licenses may depend on what your business is about.

What is a Business License?

A business license is a permit given by a governmental body to ensure a business can operate within certain jurisdictions, and it is obligatory. This is an additional step to the registration of your business to the state. The licenses a company needs is about the nature of this company and decided by different factors such as the products sold, the location of the business, etc.

A business License aims to protect the health and safety of the public. It also holds a business responsible for its activities.

Professional licenses demonstrate the professional is an expert of his profession. Sales Tax Licenses are necessary for the sales of taxable products.

Who Needs Business Licenses?

Each business with an income cycle needs business licenses to operate legally and to stay compatible with the regulations of the government. You may need to collect federal, state or local permits depending on the product you are selling. Some products such as guns or alcohol, for example, requires federal licenses. State licenses, on the other hand, depends on the state.

How to Get Business License?

First of all, you need to decide which city/state you want to choose to operate in. You can have access to the license regulations of cities and rules from the SBA website.

Please make sure you already have a Federal Tax ID Number before you apply for licenses. There are different business codes for each business type.  So you need to know this code. You also need to see if you need permits other than a business license for the kind of business you are conducting. You pay an amount between $50 and $400 for a business license. Your fingerprints may also be asked for the process in some states.

What happens if I do not get a business license?

You may be subjected to specific penalties and fees. You will probably need to pay these fees. Moreover, the authorities may close your business temporarily or permanently, which will affect your brand negatively.

What happens after getting the business license?

It is not over yet. Some licenses must be renewed annually or every two years. Related authorities usually notify companies about renewals; however, it is primarily a responsibility of the company itself.

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You can choose one of our services to start your business in the US, and you can always contact us for further information or questions.

If you have pre-sales questions, Call us + 1 302 310 21 76 ( You can also text on WhatsApp!)