Owning a business is part of the American dream. Who could be against being one’s own boss and working one’s own hours? However, before you can open your doors and share your great product or service, you’ll need to acquire a business license in order to legally operate your business. Here’s what you need to know about licenses and permits, along with seller’s permit renewal.
Do I Need a Business License?
No matter whether you’re running your business from your home or opening a local coffee shop, the bottom line—if you want to do business legally—is you need to have a business license. Businesses need certain licenses and permits for taxation purposes. The government uses license information to track revenue throughout the year.
There are also licenses and permits that your business may need to acquire to protect consumers. For example, if your business is engaged in a federally regulated industry like agriculture, alcohol, or firearms, you’ll need to have a business license and special permits.
How Do You Get a Business License?
Getting a business license can be a confusing process, especially if you’ve never done it before. Most companies need state and federal licenses, though your location, industry, and other government rules may require additional licenses.
To determine which federal and state permits your business needs, visit the Small Business Administration’s website. Here you can search by industry to determine if you require special licenses to run your business. The website also offers information about which agency provides each license.
Once you’ve determined which business permits you need, you can typically apply for the permits online. You’ll need to provide specific details about your business and also pay a small fee.
Benefits of Business Permits
While many think that business permits are just for local, state, and federal government to make more money, they offer protection for you as a business owner as well as for the general public.
1. Taxes
No one likes taxes, but getting a business license helps with yearly taxes. When filing your taxes, you can deduct certain business expenses that you otherwise wouldn’t be able to deduct on your personal filing. By having a business license, you can write off supplies, meetings, meals, and any other expenses that are directly involved with your business.
2. Personal Protection
By registering and licensing your company, you’re protected from personal liability in the event of an accident where someone is seriously injured or even killed. Certain business licenses protect you and your personal assets from being taken in the event of a lawsuit. A business permit also protects your company in the event that you’re personally sued.
3. Makes Your Company Reputable
By taking the time to figure out the types of business licenses and permits that apply to your company, it shows consumers and others in your industry that you’re serious. Having a business permit is proof that you’re serious about your brand.
On the same hand, having the right permits offers peace of mind to consumers. Purchasing from a licensed business is a much safer decision, especially when buying from certain industries like food or aviation.
Need to Renew Your Business License? We Can Help
Applying for a business permit is the first step, but, when it comes time to renew, you’ll want a quick and easy process. At FastFilings, we offer a service for business owners to renew their licenses online. With just a few clicks, you can submit your permit for renewal.
To learn more, contact us or visit our website to get started.
Sources:
1. https://www.sba.gov/business-guide/launch-your-business/apply-licenses-and-permits