How Licenses Protect Both You and Your Business

How Licenses Protect Both You and Your Business

Starting a business is an exciting adventure. Amidst all the excitement, it’s easy to overlook some of the mundane tasks involved – like applying for a business license.

The type of business license you get depends on the kind of business you’re operating. One important type of business license that nearly every business needs is a resale certificate.

What is a resale certificate?

It’s simply a document that proves your legitimacy as a business that can buy products for resale or use as component parts of products you plan to resell. Requirements differ from state to state, so you must do your research to know what is required in your state. For example, if you want to know how to get a resale certificate in NY, you can simply visit our resale certificate for NY businesses page. You’ll get all the information you need, including assistance filing your New York resale certificate form.

So how exactly does a business license protect your business?

4 Ways Licenses Protect You and Your Business

Contrary to popular belief, licenses are not just another way for the government to get a piece of your pie. Licenses serve the purpose of protecting you and your business more than anything else. Let’s look at just how.

1. Protects Your Personal Assets

Having a proper business license means your personal assets are treated separately from the business assets. In the eventuality of a lawsuit against your business, you and your personal assets will be safe. Another advantage is that all your personal information is kept private, including your personal financial records.

2. Protects Your Business Interests

A license also protects your business as an entity. Most businesses are licensed to operate in certain zones. This has the advantage of keeping other businesses away from your zone if they are deemed a hazard. For example, if you operate a day care, you’d lose clients if a bar is allowed to open next to your business.

There are many other ways in which a license can protect your business, particularly in the eventuality of a lawsuit. So never take this document lightly.

3. Protects Your Employees and Customers

The most important asset you have as a business is your customer base, then followed by your employees.

A license can help you protect both.

For any business to be granted a license, it must adhere to strict safety regulations that enhance the safety of all those who work or visit the business premises.

Proves Your Company Is Trustworthy4. Proves Your Company Is Trustworthy


If ever there’s anything that helps drive your business forward, it is gaining the trust of your customers.

And that’s exactly what a business license helps you do.

Because licenses are issued by your local authority, it is a form of a testimonial from your issuing office that they trust you to serve the community faithfully. People feel more comfortable doing business with licensed businesses as they know if anything goes wrong, they’re assured a recourse

Do You Need to Enlist Expert Help When Applying for a Resale Certificate?

Unless you know what you’re doing, it’s advisable that you get professional support when getting a license. If you need help in getting a resale certificate in in TX, NY or CA, take advantage of our expedited filing services.

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