Do I Need a Business License?

One of the most common questions entrepreneurs have when starting a small business, especially a one-person home-based business, is "Do I need a business license?".

The answer will depend on where you live and what type of business you will be starting, but the application process is really quite simple for a standard business license. In fact, mine was a whopping 2-page application that I downloaded from my county's website, filled out and then dropped off at the county along with a check for less than $50.

Not everyone's business license will cost $50, and not every business license application will be 2 pages. You may be able to download the application and submit the form to county online - or you may have to visit the office. In any case, this task takes minimal effort.

How to Get a Business License

The first step to obtaining a license is to contact your county. This can be through their website, by phone or walking into the office. They will be able to supply you with the application form and tell you the requirements, procedure and cost for a license in your particular city and county. They can also tell you whether your specific business will require any special licenses or permits.

Type your county's name into the search engine to find the website. Navigate the website to find the "Tax Collection and Licensing" department. If they don't have a downloadable application, they can inform you as to where to pick one up.

How to Apply for a Business License

The business license application form is generally quite basic. Name, address, type of business, etc.. The purpose of licensing is so that the government can help ensure that businesses are operated according to rules and regulations. Fill it out and return it to the county, along with a check. The county will then issue you a license when lasts for one year.

In the case of a home-based business, the city wants to avoid having the business disturbing the residential neighborhood in which it is located. That means not having excessive traffic, parking or noise made by the business that disturbs the other people who live there. Sometimes signs are not allowed or hours may be limited. For internet-based companies, this is generally not a problem, as they don't typically have a lot of noisy clients visiting the home.

When Do You Need a Business License?

You want to obtain your license when you start your business. If your county requires it, you will legally need it to operate. Additionally, a business license may be required to obtain financing or open a business bank account.