Types of Business Licenses and Permits

A business license is a document that enables a person to carry out their business activities in a specific area. The document indicates that the business owner is registered with the relevant authorities, builds trust with customers, and indicates that a person is competent in their trade. A permit is a form of license that usually needs in-person inspection and is also used to show that a person is eligible to carry out a specific business safely. Some of the common types of business licenses and permits include:

General Business License

This license is necessary for a person to operate a business in almost all states. Generally, these licenses are issued by the Department of Revenues and the Secretary of State. These bodies usually regulate businesses. Moreover, this document is also usually needed at the county or city level.

Seller’s Permit

This document is necessary for businesses operating in all states with sales tax. A seller’s permit allows a person to trade their products or services, whether online or in-store, and also facilitates sales tax collection on any taxable items.

Doing Business As or DBA License

If a person owns a partnership or a sole proprietorship, their business name is automatically their personal name. This license allows a person to legally operate their business under a separate brand name from their registration.

Home Occupation Permit

Nowadays, remote working is increasingly rising in the United States. According to the License Company, if a person adopts a work-from-home routine, they are more likely to need this permit. This permit should be applied through a local regulatory agency if a person’s location is not zoned for home-based work.

If you intend to start a business, it is essential to research the type of business permits and licenses required for your business. Other business permits and licenses include zoning permits, commercial sign permits, health permits, liquor licenses, and professional licenses.

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