When you’re starting a business, you’ve got a lot on your plate. Just make sure that getting the necessary business licenses or permits is at the top of your priority list.
As more people pursue their dreams of becoming entrepreneurs, 2020 saw the biggest number of business applications ever, including permits. The number of applications may have decreased slightly from the 4.5 million in 2020, but the 427,842 business applications and 31,994 business formations recorded in August 2021 illustrate that the American dream of entrepreneurship continues to fuel the economy.
According to The Really Useful Information Company (TRUiC) when you start a business you need to adhere to certain rules and regulations in order to conduct business in a legal manner. You must follow federal, state, and local government requirements in order to legally operate your new business. This frequently necessitates the acquisition of one or more business permits and/or licenses. A restaurant, for example, will almost certainly require health permissions, construction permits, signs permits, and so on.
State License and Permit
In order to operate lawfully in their state, many businesses require a state license or permit. Additionally, some professions, such as lawyers, surgeons, and electricians, need business owners to pass a state examination before practicing. Accountants, barbers, contractors, mechanics, plumbers, and real estate brokers are among the other professionals who normally require a state license.
Below we will discuss the state permit requirements of three of the top U.S states for business formation:
A business license from the Delaware Department of Revenue is required for anyone operating a business in the state. To obtain a Delaware business license, go to the Delaware One Stop website. Depending on your business activity or location in Delaware, you may require additional licenses or permits from the local government. The city of Dover, for example, requires all firms to obtain a separate local business license, with various rates for different professions. A Delaware business license costs $75 and can be obtained online.
The deadline for renewing a Delaware business license is December 31. You have the option of renewing for one year or three years after the first year. Use the Delaware One Stop website to renew your license online. To renew by mail, fill out the Delaware Division of Revenue’s business license renewal form. If you hold any other business licenses, contact the relevant state or municipal government for renewal information.
The Annual Resale Certificate for Sales Tax, also known as a seller’s permit, is the most important state-level permission or license in Florida. If you do business in Florida or plan to sell taxable products or services, you must obtain an Annual Resale Certificate for Sales Tax. To receive an Annual Resale Certificate for Sales Tax, go to the Florida Department of Revenue’s website. In addition, many industries and professions in Florida require a separate business license. The Florida Division of Library and Information Services has more information on these license requirements.
Depending on your business activity or location in Florida, you may require additional licenses or permissions from your local government. A plumber in Miami-Dade County, for example, must get county-level plumber’s licenses as well as state-level building contractor permits. A Florida Annual Resale Certificate for Sales Tax can be obtained online, by mail, or in person. Each year on December 31, the Florida Annual Resale Certificate for Sales Tax expires, but the Department of Revenue automatically renews it and mails it to you.
The sales tax permit, often known as a seller’s permit, is Texas’ only state-level authorization or license. To receive a sales tax permit, go to the Texas Comptroller’s website. Businesses in particular professions or industries may also require additional licenses or permits. A comprehensive list of state licenses and permissions may be found in the Texas Business Permits Office’s Business Permits and Licenses Guide. Some statewide professional business licenses are also listed on the Texas Department of Licensing and Regulation website.
Depending on your location and company activity, you may or may not require additional licenses or permits from your local government in Texas. Businesses who sell things door-to-door or in public locations, for example, must get a Peddler’s License from the city of San Antonio. A Texas sales tax permit can be obtained online or by mail. To apply for a job online, you’ll need to create an account and log in. Your Texas sales tax permit does not need to be renewed.
When you’re starting a business, you’ve got a lot on your plate. Just make sure that getting the necessary business licenses or permits is at the top of your priority list. You may not be able to open for business without those licenses in some circumstances. If you intend to hire staff, don’t compromise their ability to work in your company by delaying the approval of licenses that could take weeks.
Take some time to investigate what license charge or fees you’ll have to pay ahead of time so that the amount doesn’t come as a surprise.