Most small businesses only require a couple of permits to operate legally. Depending on your business type, you may be subject to additional regulations and permit requirements. It is important to find out what permits you will require at the federal, state and local levels, as each has different licensing laws.
Basic State License
Business permits are regulated by individual states, so you will need to check together with your state's business offices to find out what permits you need. all states need a basic business license for all companies. If your business is retail-based, it is likely you will also need a special retail license. In case you plan to serve food or drinks, you will need a separate permit from the local health & safety office. Be positive to check together with your state & local business offices for licensing.
Federal EIN
Almost all businesses require to get an employer identification number, or EIN, from the IRS. It is free, & you can apply for it online or by mail. Your tiny business needs an EIN in case you have employees, operate as a corporation or partnership, file excise tax or have a Keogh plan. You also require an EIN in case you do business with trusts, estates, mortgage companies, nonprofit organizations or farmers' cooperatives. If your business does any of these, you require an EIN.
Special Federal Permits
The federal government regulates numerous industries -- if your business is part of these industries, you will need additional permits from the federal government. These industries include agriculture, alcohol & tobacco, aviation, firearms & explosives, fish & wildlife, maritime transportation, mining & drilling, nuclear energy, radio & TV broadcasting & transportation. In the event you operate in any of these industries, contact the specific regulatory agency to get the necessary permits.
Tax and Zoning Permits
Tax & zoning permits are regulated at the state & local levels. Most states need businesses to collect sales tax. Some cities & local governments collect additional sales tax. You will require a tax permit to legally collect sales tax from customers.
Your business also needs to operate in an appropriately zoned area. In the event you plan on basing your tiny business out of your home, some local governments need a special home office permit.
