Taking the proper initiative to start your own business can be very exciting and enriching as well. There are plenty of individuals out there who are eager to start a home-based business.
As soon as they start advancing in their business, they usually forget to acquire the requisite permits and licenses that are necessary to operate their business legally.
Acquiring these legal permits demands you to spend the required amount of time and minor investment for the smooth commencement of your business without experiencing any legal faults.
Forgetting this can cause you a major downside that might push you to shut your business forcefully due to a lack of proper business permits. Thus, to avoid experiencing these faulty situations, this blog will take you through major things that you need to know before you start your home-based business.
General Business License
It may be necessary to obtain a county business or a local city license to operate your business within the local jurisdiction. However, if there is no business license department in your city then you can inquire in the local tax office for procuring a basic business license.
In addition to obtaining the business license, make sure that your business niche aggregate with the local zoning ordinance. when you apply for a business license, it is certified at times but it is safer to cross-verify with the county or city zoning department for final confirmation.
Also, find out in advance whether there are any restrictions in your neighbourhood regarding your business activities. You can easily find it in the form of homeowners associations. In case your business doesn’t meet the requirements of your neighbour or compile with the local ordinances, then you can apply for procuring a variance or an exception through proper channels.
Safety and health permits
There are certain health and safety permits you may require to procure from the local fire department depending on your business type. This is not a necessity unless there is a regular commencement of business meetings with your customers or clients at your home.
Also, the requirement varies if you are only delivering goods online with a home-based business. Unless you are keeping an inventory of potentially inflammable products in your home, this permit is not necessary.
These types of permits are usually required for the retail sale of beverage or food products as well as wholesale products.
However, in confusion, you can always check with the local health departments or state environmental protection agencies to figure out whether your business requires any sort of environmental permit or inspection.
Sales tax license
A sales tax license usually comes along with the general business license obtained for business purposes. However, it is not a part of a business license in some areas, in that case, you may need to procure it additionally.
If you are in confusion about whether to obtain a sales tax license or not, you can discuss it with the members of the local department. They will help you to get a clearer picture and if they confirm its necessity then you can ask further about whether to procure it from the local or state level.
Make sure to clear up this confusion before you opt to start your business. To resolve further tax-related issues hiring a tax accountant is worth it. They would also serve additional benefits like helping to reduce tax payments and much more.
Sign Permit
When you are advancing a home-based business, you may consider advertising the same by putting out a sign near your house. However, before you do that you need to take care of certain things. To begin with, make sure that you are in harmony with the local ordinances.
This is because there is a certain sign-specific ordinance in every city or county that presides over the size, location and type of the business signs. Even the lightning of those signs is usually restricted. There are many condos, HOAs and apartment complexes that have put limitations on commercial signs.
If you are staying in a rented place, it is advisable to seek the permission of the owner before putting out the signage. If you are the owner of the house, then check with your HOA before taking any final action.
Professional License
Certain home-based businesses require proper certification, and state or federal professional license. This includes legal services, hair styling salons, financial advisory services or day-care services. You can opt to contact your state business office to guarantee that you got the proper documents. Alternatively, you can consider visiting the official website of the site to procure the list of all businesses or occupations that need to have professional licensing to operate legally.
License Vs permit
People usually mix up these two terms, license and permit. However, they are quite different from each other. The only similarity between them is that both of them are legal documents. A license is issued by the government that allows its holders to perform actions that are otherwise prohibited for its non-holders. A permit is also a legal document that provides authorization to do something. Once your license is issued you don’t need to require it frequently. However, permits are required to renew frequently.
Wrapping Up
Every state has certain permits, specific licensing and zoning regulations that are important to adhere to before you start your business. To procure the requisite documents and permits, it is advisable to check with the small business administration for further confirmation. Basic business licenses and permits are usually consistent from one state to another. If you are struggling to grow your business, you can read tips for growing a small business. This might help you with innovative ideas for effective growth in your business niche.
