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Licenses and Permits: Overview


Property Use Permits. If you start a business that involves manufacturing, or if you decide to begin operating a business out of your home, depending on your location you may need to obtain a land use permit from your city or county's zoning department.

Building Permits. If you are constructing a new building, or expanding or renovating an existing building in order to operate a business, you will most likely need to obtain a building permit from the city or county. The process may require that you submit a detailed set of plans to the department prior to approval of the work and issuance of the permit.

Certificate of Occupancy. If you are planning on occupying a new or used building for a new business, you may have to apply for a Certificate of Occupancy from a city or county zoning department.

Health Department Permits. These permits are most often required for businesses involve in the preparation and/or sale of food, among other types of businesses.

Licenses Based on Type of Product Sold. Some state licensing requirements are based on the type of product the business sells. For example, most states require special licenses before a business may sell liquor, lottery tickets, gasoline or firearms.

Professional / Occupational Licenses. If you intend to open a business, and you (and/or the people who work for you) will be offering services in a wide range of areas -- including medical care, auto repair, real estate sales, tax services, cosmetology, and legal representation (attorneys) -- the business itself and/or the individual employees working for the business must apply for and obtain state licenses authorizing the practice of such a profession or occupation. Often, issuance of these licenses requires the applicant to show certain skills or training.

Employer Identification Number. Most business are required to obtain a federal employer identification number (or EIN; sometimes called a tax identification number) from the Internal Revenue Service (IRS). Your business may also need to acquire a similar tax identification number from your state's department of revenue or taxation.


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