Getting
Licenses and Permits
Most state and local governments require businesses operating
in their area to obtain licenses or permits. In some instances,
the federal government may also require you to obtain a license
or permit.
Licenses. There are essentially two types of licenses,
general and special. A general business license, similar to a
use tax, is assessed annually for the privilege of operating a
business in the jurisdiction. A special license is one that is
issued to a business that will provide products or services that
require regulation. Special licenses are issued to
professionals, such as doctors, lawyers, barbers, and others who
have met a certain level of training or education.
Permits. State and local governments regulate the
safety, structure, and appearance of the community through the
use of local laws, called ordinances. Zoning ordinances, which
regulate how property can be use, are a common type of
ordinance. Once the jurisdiction determines that you have
complied with such ordinances, it will issue a permit that will
enable you to operate your business.
If, for some reason, your business is unable or unwilling to
comply with an ordinance, you can petition the jurisdiction for
a special permit, called a variance, that would allow you to, in
effect, violate the ordinance. If you're interested in a
variance, talk to your lawyer. Variances are not routinely
granted and they can be expensive (in terms of legal fees) to
obtain, so make sure you really need the variance before you
request it.
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Work Smart
You can find out which licenses and permits
are required for your business by calling the
state and local government offices in the area
in which you are going to operate. Ask them to
send you information and any forms that may be
required.
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Home businesses. If you decide to start a home-based
businesses, one of your first steps should be to find out what
your local zoning
ordinances allow. Some jurisdictions have zoning ordinances
that prohibit home-operated businesses altogether. Most, though,
are less restrictive and will prohibit only those businesses
that may pose a local health hazard or will disrupt the
neighborhood. Call your city hall and ask them for zoning
information in your area.
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