You should also keep in mind that legally running your business includes not only complying with federal and local laws in the state in which you run your business, but you also must meet laws for every state you do business in. This also includes internet transactions if you mail your product to another state.

The following are some of the basic licenses and permits you will need to start your own business:

State business license
If your business is providing a product or service that is regulated by state law, you will need to get a state business license. This includes services that require the people working for you be certified, such as a hairdresser or Realtor. 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
Not all businesses will need a state business license, but almost all businesses will require 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:

• Food handler's permit. Any business that serves food will require a food handler's permit. In addition, one that serves alcohol will require a liquor license.


• 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 where the food is being handled.


• Home occupation permit. If you run your business from your home, you may also need this type of permit to legally operate a business from your home. You will also need to talk to your city hall about zoning, which will take into account such things as parking.


• 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.

Knowing which type of licenses and permits you will need for your home business, and then obtaining them, can be daunting. If you are still confused about what you will need, each state has a Small Business Administration resource office that will provide you with all of the legal requirements for starting a business.