Now that you have determined the business you will start and the state that you have chosen to trade in, the next step should be sorting out your licensing. The company you are going to run needs to be registered and licensed according to the regulations of the local government.
The state should determine the goods you are going to sell and the location you will use. That will help create a sense of order in the community because it prevents cases such as opening bottle stores near schools. How can you get the right business licenses for your company?
Here are 5 tips on determining and acquiring the appropriate business licenses:
In certain industries, businesses need to have relative federal licenses to conduct their business in accordance with the regulations set forth. Businesses involved in the manufacturing and distribution of explosives need to clear it with the relative authorities.
The same applies to firearm retailers in some states. If they don’t have the permit to do so, the ATF might come knocking at their doorstep.
In whatever business you are involved in, you need to determine the regulations you need to adhere to. If you are unsure of the federal licenses you need to acquire, conduct some research on the matter to ensure that your business doesn’t get disturbed by law enforcement.
A zoning permit is very important to acquire from the local government because that’s the license that will determine where your workplace will be located. Each local government has a map with areas demarcated where each type of business should be located.
That especially helps regulate businesses with a certain level of risk to be away from congested areas, residential places, and educational institutions. There are different zonings in a local government; they include commercial, residential and industrial zones.
If you are involved in manufacturing and warehousing, the zone you will get is the industrial zone. If you are a retailer, you will get allocated a commercial zone permit.
A seller’s permit is different from all the permits mentioned here and it benefits the business owner greatly. If you prove that you are a retailer or you buying goods for selling purposes, this permit makes you exempt from paying sales taxes.
If you buy the goods directly from the manufacturer, you will get the exemption of paying taxes when making the purchase of the goods. However, you will need to provide a seller’s permit to get the exemption and you can apply for it within the state you are trading in.
The first step of creating a legal company that will trade in the respective industry you have in mind is acquiring a business license. It is mandatory that you get this license to avoid getting on the wrong side of the law.
You can get a business license from the local government and also the state that the business is running in. You need to acquire both licenses, the ones applicable to the state and the local government. If you are going to operate in multiple states, you should determine the requirements of each state to ensure that you are compliant.
According to expert business attorneys at Mills & Anderson, it is important to understand the regulations in each state to be able to trade in accordance with them.
Home occupation permit
In most states, trading at home isn’t permitted, but sometimes this may be a great way to save costs. In some cases, it may be the best available option if you are going to use your garage space to manufacture the goods.
You can apply for the exemption of getting a home occupation permit to get permission to trade at home. However, if you don’t do so, it might be an infringement of some regulations, and it will get you on the wrong side of the law.