How To Apply For A Business License (All You Need To Know)

Wondering How To Apply For A Business License?

What should you do to get your business license?

How does it work?

Keep reading as we have gathered exactly the information that you need!

Let me explain to you how to apply for your business license!!

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How To Apply For A Business License

If you’re looking to start a business or expand your operations in other jurisdictions, make sure you apply for the necessary licenses and permits.

Most small businesses will need a business license issued from federal or state agencies to operate their business in compliance with the local rules.

In this post, I will provide you with the details you need so you know how to apply for your business license.

Federal Business License

Depending on the nature of your business activities, you may need to apply for a business license through the federal agency.

The federal government regulates a limited number of business activities whereas the states regulate a broader range.

The federal government regulates specific business sectors, such as:

• Agriculture
• Alcoholic beverages
• Aviation
• Firearms, ammunitions, and explosives
• Fish and wildlife
• Commercial fisheries
• Maritime transportation 
• Mining and drilling
• Nuclear energy
• Radio and television broadcasting
• Transportation and logistics

The application requirements for your federal business license can vary and so you’ll need to contact the issuance agency for more details on how to apply.

Here is the list of the federal issuing agencies:

• U.S. Department of Agriculture
• Alcohol and Tobacco Tax and Trade Bureau
• Local Alcohol Beverage Control Board
• Federal Aviation Administration
• Bureau of Alcohol, Tobacco, Firearms and Explosives
• U.S. Fish and Wildlife Service
• National Oceanic and Atmospheric Administration Fisheries Service
• Federal Maritime Commission
• Bureau of Safety and Environmental Enforcement
• U.S. Nuclear Regulatory Commission
• Federal Communications Commission
• U.S. Department of Transportation

State Business Licenses

Generally, your state, city, county, or municipality license will depend on the nature of your business activities and your business location.

The states are given a much broader jurisdiction in regulating businesses within their territory then the federal government.

Since every state and local jurisdiction has its own requirements, it’s not feasible to list all of the requirements in this post.

You’ll need to contact your state, county, or city to find out their business license application requirements.

In most cases, the state, cities, and counties have websites that post their information online so you can quickly find the information you need.

How To Apply For A Business License Steps

Let’s look at the different steps you need to take to apply for a business license.

Keep in mind that the business license requirements vary by state and jurisdiction, so you’ll need to contact your local government to start your investigation. 

The steps I’m outlining here are general steps that tend to apply to most businesses.

Create Your Business Entity

The first step is to form your business entity.

Common legal structures are:

• Sole proprietorships
• General partnerships
• Limited liability companies
• Corporations
• Nonprofit organizations

Related Article:

• Guide to incorporating a business

Get Your EIN

The next step is to apply for your Employer Identification Number (or EIN).

When applying for business licenses and permits, many issuing agencies will ask for your company’s Tax ID Number to issue your business license.

By getting your EIN, you’ll be able to give your company’s Tax ID Number as needed.

Related Article:

• Tax ID Number

Research Business License Needs

The next step is for you to do research on what business license you may need to apply for.

Depending on the type of business activities your company will engage in, you may need a federal business license, state business license, or one issued by the city, county, or local government.

You can do your research by:

• Looking up your Secretary of State’s website
• Checking the Department of Revenue’s website 
• Looking through the Small Business Administration’s website
• Consulting your city, county, or municipality’s website

If you cannot find any information online, try calling your local government’s office to get more information by speaking to someone.

Apply For Your Business License

Once you have determined your business license requirements, the next step is to actually apply for it.

For example, you may need to apply for a sales tax permit or a health permit.

You can choose to apply for the business license yourself, hire a service provider specializing in business license applications, or hire a lawyer.

Renew Your Business License

Once you have your business license issued, the final step is to remember to keep your business license active.

Pay special attention to the specifics of your business license so you’ll know how long it’s good for.

If your license is issued for a one-year period, you’ll need to renew your license once the year has lapsed.

Some licenses will need to be renewed every year while others can be for a period longer than a year, like two years or five years.

Takeaways 

So there you have it folks!

How do I apply for a business license?

The business license application process varies by the type of license or permit that you need.

Typically, entrepreneurs and business owners need to contact their state, city, county, or municipality to get more information on how to apply for a business license.

Every jurisdiction will have its own specific requirements when applying for a business license so it’s important that you verify with the issuing agency their requirements before spending a lot of time applying.

Now that you know how to for permit, good luck in your endeavor!

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