Small home business licensing considerations

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When it comes to starting a small home business, there are many things to keep in mind. Funding your business, advertising, and finding employees are just a few of things you need to do to get your business up and running.

Another thing small home business owners cannot overlook when starting a business is licensing. All states require licensing for businesses, and some businesses will require permits as well. Running a business without the necessary licensing can result in fines and even having to shut down your business.

The following are some things you should take into consideration when starting a small home business:


State business licensing.

If your business is providing a product or service that is regulated by state law, you will need to get a state business license. For example, any service that requires the people working for you be certified, such as a hairdresser or Realtor, would also require the business owner to be certified as well. Restaurants or places service alcohol also require a state license.

If you are not sure whether you small home business will need a state license, call your local government office to make sure. If you do, you will need to fill out necessary paperwork and pay fines before you are granted your license.

Sales tax licenses

While you may not need a state business license, chances are you will need a sales tax license if your small home business is selling something. Most retail businesses, no matter how small, will need sales tax licensing, so contact your State Franchise Tax Board for more information.

Permits

Chances are, you will also need some sort of permit to run your small home business. Permits ensure that your business or services follow a set of standards with regards to safety, building, and zoning.

Some of the different types of permits you may need include:

  • Health permit. If you will be handling or preparing any type of food for your business, you will need a health permit. This will also require an inspection of the premises.
  • Home occupation permit. Small home businesses may also require this type of permit, which allows you to operate a business from your home. You will also need to talk to your city hall about zoning, to make sure you can operate a business from your home in your area.
  • Zoning permit. You will also need a zoning permit before you open for business, depending on the state you live in. If you are renting your home, you will need to talk to your landlord to make sure there isn't a problem with you operating a small home business.

Because it can be confusing knowing what licensing or permits you will need for your small home business, the best thing you can do is start researching and making some phone calls. The Small Business Administration has offices in every place and is a great place to start and to go for information. In addition, your city hall and local chamber of commerce can also help you determine what you need as far as licenses and permits go. Other small business owners will be good resources for you as well.

Obtaining the necessary licensing is vital for your small home business. The above are just a few things you need to take into consideration regarding business licensing.

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