The licenses and permits you may need to operate your business differ depending on where you live and what type of business you are operating. Not to dissuade you, but if you are planning to open a restaurant, you will be facing some of the most stringent licensing requirements, because of the public health concerns related to operating a restaurant.
To determine the permits you need for your business, you should look at your municipal, county, state and federal government. Pretty broad, right?
Well, federal licensing requirements deal with very specific areas. If you aren’t involved in any of the following, you can move on:
- Importing / Exporting
- Investment Advising
- Drug Manufacturing
- Preparation of Meat Products
- Sales of Alcohol, Tobacco or Firearms
- Broadcasting
- Ground Transportation
If your business does involve any of these areas, consult
Business.gov for compliance information. Additionally, if you hire employees, you will need to obtain an Employer ID Number from the IRS.
State requirements often include the following, although this list is not exhaustive: business licenses, professional licenses, product licenses, tax registration, trade name registration, and employer registration. You are usually required to pass a test to get a professional license, such as the state bar for a license to practice law or a state real estate exam for a license to sell real estate. States typically require product licenses for one of the two following reasons: the product is subject to a state sales tax of some sort, or the product is a ‘vice’ product such as cigarettes or alcohol. Employer registration is required in most states, but only if your company actually hires employees.
For state licensing requirements, you will need to consult your state’s website, as well as those of any states you plan to do business in. Licensing requirements can vary greatly between states. The same holds true for county and municipal licensing; however these both typically deal with restaurant permits and other public health issues. An important factor to keep in mind for your county licensing – a restaurant typically receives a license for a specific location. If you open additional locations, you will need to obtain licenses for each new location.
If your business is construction-related, you may need to consider what permits you need to complete specific projects, as well as those relating to your overall business. They are administrated on a state or local level, as are environmental permits – which the requirements for vary. If you are placing chemicals into the environment, you typically need an environmental permit. You may also need one if you are substantially affecting the environment. For example, you may be planning to build a shopping mall in what is currently a wetlands area. You may be asked to apply for an environmental permit, as well as complete environmental studies on a per project basis, as well as on a long-term basis for your companies needs.
Permits and licenses can seem overwhelming, with the sheer number of reasons you may require one. However, in most states, there are resources for small businesses that will walk you through the application process. Your state’s website can also direct you to other resources. 
