How to Get Business Licenses and Sales Permits in the U.S.
Obtaining the correct licenses and permits is essential for legally operating a business in the U.S. The process and requirements depend on your business type, activities, and location.
Types of Licenses and Permits
- Federal Licenses/Permits: Required if your business activities are regulated by a federal agency (e.g., selling alcohol, broadcasting, agriculture, firearms, transportation). Check with the relevant federal agency for specific requirements.
- State Licenses/Permits: Most businesses need a state business license or permit, especially if selling taxable goods or services (sales tax permit). States also issue occupational licenses for certain professions (e.g., medical, legal, plumbing).
- Local (City/County) Licenses: Many cities and counties require a general business license, zoning permit, health permit, and other local approvals. Requirements vary widely by jurisdiction.
Sales Permit (Seller’s Permit/Sales Tax Permit)
- Required for businesses selling taxable goods or services in states with a sales tax.
- Register with your state’s tax authority to collect and remit sales tax.
Step-by-Step Guide to Applying
- Determine Your Requirements
- Identify which federal, state, and local licenses and permits apply to your business based on your activities and location.
- Gather Documentation
- Prepare necessary documents such as personal ID, proof of business name registration, business plan, lease agreements, and formation documents (e.g., Articles of Incorporation for corporations).
- Complete Applications
- Fill out the required forms for each agency. Double-check for accuracy to avoid delays. Some applications may require notarized documents or supporting letters.
- Pay Fees
- Pay all applicable licensing and permit fees. Fees vary by license type, business size, and location.
- Submit Applications
- Submit your applications to the appropriate agencies. Many states and cities offer online application options, but some may require in-person submission.
- Maintain Compliance
- Track expiration dates and renewal of licenses and permits as required. Some licenses must be renewed annually or periodically.
Where to Start
- Federal: Visit the relevant federal agency’s website for industry-specific requirements.
- State: Check your state’s Secretary of State or Department of Revenue website for business and sales tax permits.
- Local: Contact your city or county clerk’s office or local Small Business Development Center for local license requirements.
Tip: The U.S. Small Business Administration (SBA) provides a helpful guide and resources for identifying and applying for the licenses and permits you need.
Summary:
To get business licenses and sales permits, research your specific requirements at the federal, state, and local levels, gather documentation, complete applications, pay fees, and submit to the appropriate agencies. Stay compliant by renewing licenses as needed.