You are thinking of trying your hands at a new business and everything is looking wonderful through your rose-colored glasses. But are you aware that in order to conduct business in a legal manner the first thing you need is a business license?
Look into the regulations and find the type of business license you need for your organization. A business license depends on the nature of your business and the place you have set it up as your base. It can be acquired in person, by phone or via online portals from appropriate agencies.
It is important to keep renewing your business license depending on the terms as continuing the operations with an expired business license can prove detrimental for your business.
1) Business registration
If you are starting a new business you need to register it officially to give it a legal framework. If you are looking for ways to get a business license you first need the registration without which an organization cannot be legally entitled to conduct its business in any place.
The process is simple as you can register your company via mail, online or in person. Limited partnership, corporation and limited liability companies will have to register their organizations with state authorities whereas if you have set up a general partnership or sole proprietorship you do not have to register with them.
Instead, all such business is handled by the city or county where the business will be actually based.
2) Acquire an Employer Identity Number
Acquire an Employer Identity Number if you are looking for ways to get a business license. Once you have completed the entire necessary procedure visit the IRS website to acquire EIN or Employer Identification Number for your business entity.
This is free of cost and can be easily obtained online. Remember both business registration and EIN are necessary if you want to apply for a business license. S Corporation, C Corporation, LLC and partnership business must have Employer Identification Number or EIN as it will be used its identification number for taxpaying purposes.
A sole proprietorship firm must also have an EIN but it can also use its Social Security Number as its identification number for taxpaying purposes.
3) Business permit types
You have already registered your company and hence know about the business you will be conducting. Determine the type of business license that you need for your particular entity if you are looking for ways to get a business license.
Visit either BOE or SBA as they can guide you better about your requirements. Enquire about any additional license that you will need, for instance, a professional license is a must for several industries like security, insurance, medicine, law, etc.
4) Register your business name
Register your business name if you are looking for ways to get a business license. Before you do so check whether the identical name is already being used by someone in your jurisdiction or not. Same name companies will not be able to get a business license hence make the necessary changes before applying for a business license.
If you are interested in opening a website then choose an eye-catching name that is unique and has not yet been recorded? You can check online to verify whether a similar name web domain exists or not so that you can finalize your own business name.
5) Where to go for your license
The area you are going to establish your business organization is the place from where you need to apply for a business license. The business address is proof that the particular city is your official business site even if you have rented bought or are just conducting operations from there.
Every city has an online database where you can list your address and find the municipality under which it falls. You can find the necessary webpage also through SBA’s website that lists information and details about getting the business license.
Once you know where to get a business license it becomes easy to procure and get a business license.
6) Identify your business code
If you think that you need one common business license for every type of business then you are completely wrong. As the business entities belong to separate industries similarly every business organization is given a different code to distinguish one from another.
Identify your business code if you are looking for ways to get a business license. Each city has its own requirements and the application process of different codes is very specific and distinct. You cannot choose one for another as it will be rejected.
You can visit the online site of your city for the required information about the specific license you need according to the business code. If you are interested in looking through the SBA website just narrow it down to your county or city to gather relevant information and facts.
7) Locate the forms
Locate the form if you are looking for ways to get a business license. Until and unless you fill the form your application for the business license will not proceed through the proper channels.
Once you visit the website of your city or SBA portal you will find several types of forms related to business entities listed on it. Just choose the one that meets your requirements and download it from the site. You can also pick it up from the City Hall.
Besides the business license form, you may be asked to fill other forms in its relevance as you may be in need of other permits. Follow the links to your form to gather as much information as you can for instance about any fees or about any additional forms that you need to submit along with the business license.
8) Filling the forms
Remember you need to first fill the form that you have downloaded or brought down from the city hall and submit it to the proper authorities if you are looking for ways to get a business license. You can fill the physical form by hand and the online form by typing the required information online and then printing it or first downloading the form and then writing on it.
Some places have the provision of filling forms directly online and you can avail yourself of this opportunity by creating an account and then doing the needful. Additional information required with the forms may be pertaining to the type of business you will be operating, the name of the owner of the said business; business address, contact information and the Federal ID number allotted to it.
9) Getting the license
File the filled forms with the finance department of your city if you are looking for ways to get a business license. The contact information related to the submission of the form is already listed on the website just visit the site and follow the required directions.
You must know that this process is not free as every city has levied its own filing fee in connection with the business license for the type of business you will be operating. Sometimes a nominal processing fee is also levied as additional charges along with the business license.
10) Waiting for the business license
It takes some time to process the form and issue the business license. The person who has filed the necessary form now has to wait the required period if he is looking for ways to get a business license.
The number of days depends on the type of business a person will be operating. It is easy to pick up the license by the business owner from the department by showing your ID proof.
Some places have made it mandatory to record your biometrics whereas in other places the official database has already a recording of the fingerprints for future use. The idea of business license was started to bring forth a feeling of transparency in the operations and to keep the consumers safe.
Virtually every type of business needs some sort of license or other. Better be prepared with one if you are interested in maintaining smooth and undisturbed working conditions in your business organization.
Securing a business license may seem time-consuming to a new entrepreneur but remember it is one of the most important tasks as your workings and dealings depend on this single piece of paper. You no longer will be vulnerable to threats like lawsuits, fees, and fines.