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Business Startup Tips: Licenses and Permits

January 20, 2008 · Written by Heather Juma

legal papers When you’re first getting started in your business, you may not realize that you may need some licenses and permits to operate. Some licenses and permits are expensive so you’ll need to figure that into your startup costs. Also, some licenses and permits may be difficult to get, such as a liquor license for your new restaurant. Make sure you’re following all the rules and regulations, you don’t want to work hard and build your business only to have it closed down because you failed to get the necessary permits and licenses.

Here’s a list of the most common licenses and permits; regulations are different for different businesses and vary according to location as well. Do your due diligence and make sure you’re compliant.

Fictitious Name (DBA)-If you’re a sole proprietor or partnership and choose to operate a business under a name other than your own name, this is called a fictitious name (DBA “doing business as”). You may be required to register your fictitious name.

Business License - Contact your city’s business license department to get a business license. This will give you the right to conduct business in your city.

Health Department Permit - You’ll need this to sell food directly or indirectly to consumers. The health department will want to inspect your food preparation facilities before giving you a permit. Some cities have strict gidelines and requirements governing where you can prepare food and may require a commercial kitchen facility.

Liquor, Wine and Beer Licenses - In many states you’ll need different permits to serve wine, beer and hard liquor, check your local regulations carefully. The rules and regulations for these types of licenses are very strict and can be confusing, contact your local alcohol beverage control agency.

Fire Department Permit - Again whether or not you need this permit depends on your local ordinances. If you have an office where people will congregate (such as an office, restaurant or store) you’ll need one of these permits.

Sign Permit - Cities may have restrictions on the signs you can use outside your business. Check you local regulations as well as with the landlord if you lease business space.

County Permits - If your business is located outside a town or jurisdiction you may need this license.

State License - Check any regulations that may apply to your specific industry. You may require a state license to practice certain occupations such as medicine, dental, hairdresser, chiropractor, nursing and a spa facilities to name a few.

Federal License - Federal licenses are genrally for radio and television stations, meat packers and investment firms.

Air and Water Control Licenses and Permits - If you burn any materials, discharge anything into sewers or waterways or use products that produce gas you’ll require an air and water pollution permit.

This is a quick overview of licenses and permits that you may need for your business. Always check your local, state and industry requirements to make sure you’re in compliance.

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