Licenses and Permits You Might Need to Start a Business

Special City Permits

Your city may require you to get special permits if your business uses certain materials or even if your business is open to the public. Generally, flammable materials or materials that could pose a danger to the public could require special permits. In some cases, your city may require a permit just because you are open to the public, even if you are running a home-based business.

• Fire department permit – The city may require you to get a fire department permit if your business uses flammable materials. Some cities may require this permit just because you are open to the public, and some cities may require you to schedule fire safety inspections in lieu of getting a permit. Retirement homes, daycare centers, and restaurants are common places that may be required to get a fire department permit. Always check your fire extinguishers to ensure they are in date. If you do use flammable materials, be sure they are stored properly and that employees are using the proper cautions when working with those materials.
• Air and water pollution control permit – If your business burns materials, discharges items into the waterways or sewers, or uses items such as paint sprayers that create gas, then you may need a special permit for this type of activity. If you own a construction company, you may also have to get environmental protection permits from the city in addition to the state and/or federal government permits. Other businesses that may require this permit include auto body shops and those that manufacture chemicals. Check with all three entities for environmental control permits.
• Sign permits – Most cities have ordinances about signs. They may restrict location, height, size, lighting, or even the type of sign you can put up. Location is important because some signs could hinder the view of traffic or other businesses. Before you spend the money putting up a sign in front of your business, or even a smaller lawn sign, check with the city and county for permits and restrictions for signs. If you are renting the building or property where you are setting up your business, you should also check with the landlord before putting up a sign, even if the sign is authorized by the city or county. Your landlord may also have restrictions on signs, especially if you are in the same building with other businesses, as the landlord may want all signs to look the same.

County Permits

You may feel that if you are in an unincorporated part of the county that you are able to do what you want. However, unincorporated areas still have rules and regulations, especially if you are near a conservation area. If you are in an unincorporated part of a town or county, the county may be the entity that issues permits for your business. In some cases, even if you are in the city, you have to get certain permits from the county. For example, in Tampa, Florida, you may need to have a city business tax permit and a county business tax permit.

• Health department permits – Most counties are going to require you to obtain a county permit if you sell food as a restaurant or if you wholesale food to other retailers. This includes food trucks. The health department will do an inspection before it issues the permit. The health department also performs periodic inspections which establishments must pass or risk having their permits revoked. The inspectors check to see that you are properly storing food, that food is not past the use-by date, that the facility is clean, and that the facility is up to code.

State Licenses

Most states require licenses for certain occupations including, but not limited to:

• plumbers,
• building contractors,
• electricians,
• auto mechanics,
• insurance agents,
• collection agents,
• re-possessors,
• real estate brokers,
• doctors,
• nurses,
• cosmetologists,
• barbers, and
• other occupations who provide personal services.

Many of these professions require state testing in order to get licenses. Additionally, states may require occupational permits even if the county and/or city require occupational permits.

Federal Licenses

Some businesses are required to obtain federal licenses, including meat processors, investment advisory services, television stations, and radio stations. You may need a federal license if you are involved in agriculture, selling alcohol, firearms, provide air transportation, provide sea transportation, or several other types of services and products that are federally regulated.

Sales Tax License

Most people realize that they need a state sales tax license to sell goods. However, many do not realize that if they sell goods out of their home that they still need a sales tax license. Whether your business is a small business that you run from your home or you are opening a larger retail business, including providing services, you will need to obtain a sales tax license from your state. Check with your state’s rules and regulations to determine what products and services are taxable, as each state may tax different products and services. If you have more than one location, you will need a separate sales tax permit for each location.

Furthermore, if you purchase products for resale, you may be exempt from paying sales tax on those purchases. Most businesses will require that you provide a copy of your sales tax license to their establishment.

Online Businesses and Home-Based Businesses

If you are planning on opening an online business, you should treat it just as you would a brick-and-mortar business when it comes to obtaining permits and licenses. You will most likely need to have the same permits and licenses to operate your business, especially the specialty licenses and permits listed above.

The state you incorporate in is the state you obtain licensing from. Even if your business is in one state but you sell or provide services to those in other states and not your own, you should abide by your state’s requirements.

If you have a home-based business, you will need to abide by the licensing requirements for your state, especially if you have people come into your home for business reasons. Additionally, you should have business insurance if the public is invited onto your property for business reasons. For example, a home auto technician repairing vehicles out of his or her garage should have garagekeepers insurance to protect them and their property against liability if someone gets hurt while visiting the property.

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