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How to get a business license

Many people have dreams of running their own business, but before that dream can become a reality, there are some things that must be done first. A person cannot legally operate a business, without applying for and receiving a business license. This can lead to huge fines and possibly put your business at risk for getting shut down.

Types of business license

Federal business license Only some businesses are required to file for a federal business license, and it’s mainly those businesses that are regulated by the government. Some businesses, which are regulated by the federal government, are businesses which sell fire-arms, businesses who manufacture drugs, tobacco, or alcohol, investing advising businesses, and broadcasting businesses. State business license Every state differs when it comes to their licensing requirements, so it is best for a person to check with their local state government office to verify if a special license is required for a certain type of business. Businesses or occupations, which require state licenses, are accountants, barbers, appraisers, cosmetologist, real estate agents, and many more.
Local business license Obtaining a local business license is not hard to do. A person must contact his local court-house or city hall office to fill out the necessary paperwork. Nowadays, with technology being so popular, a person may be able to download the application form for obtaining a local business license. Also, when applying for a business license, there is a small fee associated with it.

Obtaining a business license

Obtaining a local license is different than obtaining a federal or state license because of the requirements. Requirements for obtaining business license
Some local business licenses requires zoning permits, so your local city can make sure that the space you plan to occupy for your business is properly zoned. Also, if you plan to run a home business such as a beauty salon, then a special local license may be needed to conduct business out of your home. Doing business as (DBA) When a person decides to start his own business, he will usually operate the business under a fictitious name, and in many states, it is a requirement that business owners conduct business under a DBA name. A business must register under their DBA name, in order to sign any documents, checks or enforce contracts using their business name. Having a registered business name gives businesses a more professional image, and it helps to prevent other businesses from assuming a business under the same name.

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