Small Business Licenses And Permits
What is a "business license"?
A business license, to be honest is more for taxation purposes. In other words, your county or your state - somebody gets something from you out of this business license. The amount they gain has, I have to tell you, increased considerably over the years. A business license is also important because there are some areas you definitely need business licenses for. For example, if you're a psychologist or in a certain medical profession. You need a business license for different things, products that you may sell. It's important. But in any case, a license is usually at the local level. You can check by going to the telephone book and calling the government. They'll tell you, usually the county clerk or whoever it happens to be, of all the details regarding what you need to do.
What are "city permits"?
City permits certain things that the permit may be, for example, if you have a restaurant and you want to sell alcoholic beverages or different things you might want to do, for example; handling hazardous materials. There are different permits that you might need. And again when you get your license they'll tell you if your type of business needs these things, and will tell you how to go about getting one.
What are state licensing requirements for businesses?
The basic state licensing requirements for business are just that you want to be in business and pay the tax. They also want to know your location. This is critical for a home business because sometimes there are zoning laws, depending upon the type of business that you want to run. For example, if I wanted a home business and I wanted to manufacture, the state may not permit me to do this. Or, if there's going to be trucks delivering equipment on a constant basis, that may be a no-no for a residential area. The state tell you what the situation is when you go to get the business license.
What are federal licensing requirements for businesses?
Actually, at the federal level, they have licensing also. For example, dealing in firearms, there's a federal license that you have to get in order to handle or deal in firearms, to sell or whatever, to act as a retailer. So again, when you go for your local, you will be asked about this. I don't think this will fall through the crack.
What is the State Board of Equalization?
The State Board of Equalization gives you a chance to be a tax collector for your state. It is a great yet unpaid honor. What it means is that you get a seller's permit and many states have taxation, sales tax, and for example where we are here, it's over 8%. With the State Board of Equalization, whenever I sell to someone, I have to collect that tax. Then periodically, I send this tax to the state. In order to get all this information, you go to the State Board of Equalization who will give you a seller's permit and an informative little booklet. They don't give you a badge or anything official to say you're now a tax collector, but you still are.
What is a "seller's permit"?
Well that's what you get from the state board of equalization to allow you to deal with these certain goods. You realize mostly with product, I mean services are really taxed, so you are really dealing with your taxed, buyers taxed on product that they purchased from you. And the permit just allows you to do this and gives you like I said a little certificate and everything.
