Home businesses that prepare food may require a state license.
Depending on the type of home-based business you choose to run, you may need a variety of licenses to ensure that your business is legally compliant with federal, state and local law. Business license requirements vary from state to state and even from county to county, which can make the process quite complicated, even for a small business. However, by understanding get started with your research, you can make getting licenses for your home-based business much easier.
Instructions
1. Choose a business name and apply for a fictitious business name certificate, if required by your state. You may need this certificate for officially registering your business name before you can apply for additional licenses for your business, according to SCORE, a national volunteer organization that offers counseling to small-business owners. Check to see if your state requires a fictitious name certificate and which office to contact to obtain one (see Resource).
2. Find out if you require a federal license for your business. Not all businesses require a federal license. Some examples of those that require one are businesses that brew or distribute alcohol, businesses that sell firearms or ammunition and businesses that give investment advice, according to the Business.gov website.
3. Contact your local government to find out if your small, home-based business requires state certification or inspection, suggests SCORE. If you are a real estate agent, building contractor, auto mechanic or private investigator, you may need educational certification to receive a state license for your business. Ask about a state license if you plan to offer child care or prepare food products. These types of businesses usually require state inspection to ensure that your business meets state health codes, notes SCORE.
4. Contact your state franchise tax board if you plan to run a retail business. Retail sales require the payment of state sales tax in most states, according to SCORE. Call the county clerk's office for your area to find out the requirements for a local business license. Local license applications often have to be filed in person, so make sure you understand prepare the appropriate paperwork and application fees to spare yourself the frustration of having to come back later.
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