Starting a new business can be an exciting time and a challenging one as well. There are many things to do just to get started. Among the essential early steps is to obtain the required licenses. New businesses can’t operate without licensing. Business licenses are simply permits allowing or authorizing a business to operate within a government’s geographical jurisdiction. There are usually multiple licenses required to conduct business.

Why Does My Business Need a License?

This is America, right, the land of the free? Yes, but most things aren’t free, only certain rights including the right to own and operate a business. New businesses are required to obtain licenses because licenses function to:

  • Hold businesses accountable for their actions and to protect the health and safety of the public. 
  • Indicate the level of expertise held by professionals. 
  • Control the sale of goods and services. 
  • Track revenues for the purposes of collecting taxes.  

Without having the required licenses, new businesses:

  • Would not be allowed to open a new location or could be temporarily or even permanently shut down. 
  • Could be liable for significant fines or penalties. 
  • Owners and the business itself would not be protected by local, state, or federal ordinances. 
  • Could find their reputation tarnished.  

What Licenses Do New Businesses Need Before Starting?

The number and types of licenses required depend on the services or products sold and on the geography in which the company operates. There can be city, state, and federal licenses. Common types of licenses include:

  • Business license 
  • Zoning permit 
  • Building permit 
  • Health Department permit 
  • Sales tax license 
  • Sellers permit 
  • Fire Department permit 
  • Withholding Tax Registration 
  • Health and food safety 
  • Environmental  

The SBA has a good reference for licensing, but it is essential to check with local authorities to ensure proper licensing compliance.

Seek Expert Financing Assistance

Contact the financial experts at Commercial Capital Finance, known for having diverse and flexible commercial finance services for new businesses and existing enterprises.  Our financial professionals can help you secure appropriate funding to meet your business’s financial needs.