A key requirement for new business owners is to obtain (and then maintain) business licenses and permits. Every business needs to have some combination of licenses and permits in order to operate, and the requirements vary depending on the type of business, its location, and the local government rules.

Why Are Business Licenses and Permits Required?

Business owners must obtain the required licenses and permits for these purposes:

  • To establish a proper identity of the business. 
  • To provide accountability for the actions of the business. 
  • To protect public health and safety. 
  • To provide a means of taxation.  

What Types of Licenses and Permits are Required by Law?

There is a wide range of licenses and permits that may apply to a specific business, but here is a common list of those that business owners must consider:

  • Business operating license 
  • Zoning and building permit 
  • Property use permit 
  • Safety and health licenses 
  • Sales tax license 
  • Withholding Tax Registration 
  • Fire and Police Departments permits 
  • Environmental licenses 
  • Signage licenses  

How Do I Get the Required Licenses and Permits?

New business owners should do the following:

  • Start by clarifying the location in which the business will operate (city, county, and state.) 
  • Find applicable regulations for the location by going to the SBA website: https://www.sba.gov/business-guide/launch-your-business/pick-your-business-location 
  • Obtain a Federal Tax ID Number (EIN) and have your business’ tax code on-hand. 
  • Determine where to get the necessary permits and licenses by checking with the city and state. 
  • Secure and then fill out the required forms. 
  • File the forms and pay the filing fees. 
  • Wait to receive all required licenses and permits before beginning operations.  

Seek Expert Financial Assistance

Contact First Source Capital, based in Wakefield, MA for more than 50 financial products and solutions for businesses of all sizes. Our commercial finance options can give new business owners the capital you need to thrive and grow. Our team of trained financial professionals is ready to assist you.