Do I Need Any Business Licenses or Permits?

One of the first questions in any new entrepreneur's mind is: "Do I need a business license?" What many small business owners aren't quite clear on, however, is that the term "business license" does not refer to a unique document; it is, in fact, a general term that can refer to any amount of specific business licenses or permits that may be required.

Let's take a look at some of the business licenses available that you may or may not already be familiar with—and learn how you can determine your unique requirements for your small business and stay in compliance.

Many factors go into your business license requirements, including:

• Your entity type (whether you are an S corporation, C corporation, LLC, sole proprietorship, partnership, or other entity type)
• Your specific business purpose (real estate, plumbing, nursing, and so on)
• State requirements
• County requirements
• City requirements

If you've incorporated your business or formed an LLC, you did so at the state level; if you formed a sole proprietorship DBA, you likely did so at the state or county level; regardless, it's important to note that you're responsible for determining your license requirements in all three jurisdictions: state, county, and city.

• Alcohol wholesaler license
• Appraisal license
• Architectural license
• Body art technician license
• Cosmetology license
• Microbrewery license
• Midwife license
• Private investigator license
• Real estate license
• Sales permit
• Security guard license
• Tattoo license
• Wildlife rehabilitation permit

And the list goes on . . . and on . . .

Broadly, you have three options when it comes to figuring out your business license and permit requirements:

• Talk to your state, county, and city to determine your requirements.

There may be a list of required documents, at each level, for businesses with your entity type and purpose; however, be prepared for state, county, and city representatives to tell you they're not able to give you legal advice and point you toward some statutes and legislation for you to dig through yourself.

• Hire a corporate attorney to determine your requirements.

The pros: a corporate attorney can give you comprehensive information and legal advice tailored to your specific entity type and purpose. The cons: lawyers don't come cheaply.

• Hire a third-party filing service to determine your requirements.

A third-party filing service, such as Click and Inc, can work with their vendors' extensive databases to bring you customized information, without the price of a lawyer.