There are many types of licenses and permits that businesses need to operate legally. These vary by business type, location, and industry. The first thing you need to do is research the different licenses or permits your company will need to plan for them. Get started with this blog post which will help explain the difference between the various types of licenses and permits.
What is a business license?
A business license is an official document that you apply for to do business. This authorizes the company to operate legally within a particular area or state if it’s necessary. A local government agency issues this type of documentation and may have specific requirements. For example, starting a restaurant might require licenses from both your city hall and the health department.
What are permits?
Permits are similar to licenses because they detail what types of activities can take place on certain properties. However, these documents tend to be issued by departments other than just city halls, which means several organizations could be involved – not just one authority figure. Permits also vary depending on where you live since different areas will likely have their own rules about them. For example, if you’re building a new structure on your property, then chances are that it will require one or more permits from the local government.
Types of business licenses and permits
There are many different types of permits and business licenses are needed that businesses require. Therefore, the first step is to do your research to know exactly what they entail and the documentation required for them.
The business license is a document issued by those in charge at city hall, state office buildings, or other governing bodies which allows companies to operate within their area legally. These vary depending on where you live, but most government agencies will have specific requirements regarding how this document needs to be filled out and submitted. A local chamber of commerce might also offer some guidance with applications since they may know more about these procedures than someone else would.
Almost every industry requires one, including restaurants, beauty salons, daycare centers, manufacturers, retailers, etc. In some cases, you might not need a business license but instead one or more permits from particular government agencies. For example, if you’re building something on your property, there will likely be some sort of permit involved and maybe even inspections after it’s built.
The permit is another type of document which businesses usually obtain before starting certain activities such as construction projects, opening up retail shops in commercial spaces, etc. These documents tend to vary depending on the industry and where they are located since different areas have their own rules about them. Some organizations will provide specialized guidance for these applications, while others will entirely leave that work to those applying.
What is the difference between business licenses and permits?
The main difference between these two documents is how they affect an individual’s freedom of movement in their own city/town/county etc. Business licenses allow companies to do business within established guidelines but don’t prevent them from moving anywhere else while keeping their license active.
This means anyone who wants to start up a restaurant could get licensed for operation in New York City, Los Angeles, Phoenix, Arizona, plus any other place where they have friends or family. On the other hand, Permits are specific, meaning businesses can only work in the particular area where they have been issued.
In short, a business license is an official document that allows you to conduct your company’s operations within established guidelines, while permits are specific to one place and industry only.
In contrast, permits limit businesses’ options by restricting location choices. As such, anyone who wants to start up a restaurant will need both a city hall business license and a permit from the local health department.
Why would I need a business license?
There are many reasons why companies need business licenses. The most common reason is that they’re legally required to operate within the city limits of their particular location since this helps reduce crime rates and create a better area for residents, increasing property values.
Even if your company doesn’t have any competitors, it still needs legal permission to do business, or else things will get messy. Another popular reason people apply for these documents is that they want proof of ownership over their brand name – i.e., trademarking – so nobody can steal it from them later on down the road or at least not as easily as before anyways.
What other permits should I be looking out for?
According to industry professionals, there’s an average of around 70 different
permits that various organizations can require (e.g., fire department, health department, etc.) before restaurants and other food-related companies are allowed to open up shop on any given street in a particular area.
What would happen if I failed to obtain a business license or permit?
It’s really not worth the risk to try and get around getting a business license or permit since it would likely cost you more in fines/fees than just applying for them in the first place. Furthermore, if authorities regularly tried to find companies that didn’t have permits, they might never open their doors which means there’s no way to earn money.
As such, failing to obtain legal permission is always an illegal move, so don’t do something stupid like this unless you want serious consequences, like being forced out of business permanently or having your brand name taken away from you, etc.
How does renewing existing business licenses work?
Since licenses are only valid for a specific timeframe, it’s important to regularly check them to make sure they’re not going to expire. Usually, companies will have the option of manually checking their documents themselves or giving somebody at city hall/state government office, etc., access so they can do this task on your behalf.
Either way, be careful when choosing who you give these permissions to since there could be someone out there looking to take advantage, like an identity thief trying to get their hands on sensitive pieces of information about your business. Make sure that employees don’t share personal company data with anyone unless they’ve personally confirmed that person is allowed by law (e.g., legal department to see such details first hand.