With the many tasks involved in starting a business, it's easy to overlook the important legal requirements associated with registrations, permits and licenses. In addition to the information listed here, you can seek help from your state's chamber of commerce, a lawyer, or trade associations serving your business, profession or industry.
Federal Requirements
With the exception of Sole Proprietors, most business types must apply for an Employer Identification Number (EIN) regardless of whether they have employees. To find out if you need to have an EIN, take a look at Do You Need an EIN?.
Most businesses do not require a federal license or permit. However, if you are engaged in one of the following activities, you should contact the responsible federal agency to determine the requirements for doing business:
- Investment Advising
- Drug Manufacturing
- Preparation of Meat Products
- Broadcasting
- Ground Transportation
- Selling Alcohol, Tobacco or Firearms
Federal registration of intellectual property, including patents, trademarks, trade names and copyright, provide business owners with exclusive use of intellectual property in the U.S. as well as in a large number of foreign countries. See the Intellectual Property for details.
State Requirements
While business licensing requirements vary from state to state, some of the more common types are listed below. More specific information for your state can be found under State Business Resources.
Business Licenses
A state business license is the main document required for tax purposes and conducting
other basic business functions. Many states have established small business assistance
agencies to help small businesses comply with state requirements.
Occupations and Professions
State licenses are frequently required for occupations as varied as building contractors,
physicians, appraisers, accountants, barbers, real estate agents, auctioneers, private
investigators, private security guards, funeral directors, bill collectors, and cosmetologists.
Since you can't always guess which occupations and professions are licensed by your state,
you should always check with your state licensing authorities.
Licenses Based on Products Sold
Some state licensing requirements are based on the product sold. For example, most states
require special licenses to sell liquor, lottery tickets, gasoline or firearms. Contact your
state licensing authorities to determine the
licensing requirements of your business.
Tax Registration
If the state in which you operate has a state income tax, you'll have to register and obtain
an employer identification number from your
state Department of Revenue or Treasury Department.
If you're engaging in retail sales, you will need to obtain a sales tax license.
Trade Name Registration
If your business will only be operated in your local community, registering your company
name with the state may be sufficient.
Employer Registrations
If you have any employees, you'll probably be required to make unemployment insurance
contributions. For more information, contact your state
Department of Revenue or Department of Labor.
