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What is a Business License? – Types, How to Get, and More

What is a Business License? – Types, How to Get, and More

What is a Business License?

A business license allows the owner to start and develop a particular business type in the city, county, state, or country. It is a type of permit that implies that the company has the government’s endorsement to operate.

Government agencies can fine or near a business that operates without a license, so find out if having a license is part of your process to start your business. Not all of them require a permit.

Dependent on the kind of business you have, you may need a local, county, state, or federal license or none at all where. Your company location will determine what type of license you need and where to obtain it.

What are the Types of Business License?

business license

1. City Business License

  • Check your city or department area’s planning to learn if you need a business license to start a local business.
  • Whether you depend on putting your store in a home office, which some cities closely regulate, or if you will be renting a good location.
  • Your planning department can tell you.

2. County Business license

  • Some counties require a license, even if your city doesn’t.
  • And also, check with the county clerk to see if you need an appointment for your business type.

3. State Business License

States require licenses for particular occupations to protect the health and safety of residents. The most common fields that require a license are:

  • Automotive mechanics;
  • Builders;
  • Collections agencies;
  • Electricians;
  • Insurance agencies;
  • Personal service providers (such as barbers, stylists, cosmetologists, doctors, and nurses);
  • Plumbers;
  • Real estate brokers;
  • And also, recuperators;
  • Licenses are also required to help alcoholic beverages, which applies if you have a restaurant, bar, catering company, or special events.

4. Federal Business License

A federal business license requires businesses that are more heavily regulated or supervised by the federal government, such as firearms, explosives, mining and drilling, aviation, and alcoholic beverages. The state licensing board has your state’s requirements for receiving a license.

Giving to the Small Business Administration, occupations such as appraisers, accountants, barbers, private investigators, cosmetologists, and Building construction management companies often require a state license. Your local city determines if you need a local license. In many cases, a local business license requires doing business in a particular area, even if the state does not require it.

Only a few types of businesses need a federal business license, and most apply to large corporations. Federal licenses require for companies that:

  • Manufacture, import, or sell alcoholic drinks;
  • Import or transportation animals, animal products, or plants crossways states;
  • Aircraft operated;
  • Manufacture, process, or import weapons or ammunition;
  • Have activities related to wildlife;
  • Be a commercial fishing business;
  • Provide marine transportation;
  • Drill for gas or oil;
  • Produce commercial nuclear energy or fuel;
  • Broadcast via radio, television, cable, or satellite;
  • And also operate a large vehicle.

How to Get a Business License?

business license

  1. Due to the diversity of business types, we advise you to put yourself in the hands of experts like us.
  2. From Abogados Tenerife, we can help you process and obtain this commercial license without setbacks, being able to know your case personally.
  3. Despite this, we leave you some simple steps to summarize the procedures that will lead you to obtain this commercial license and better understand the aspects to take into account before requesting it.
  4. The City Council must give authorization on the legality of this activity before proceeding to the next step.
  5. And also, it can save you time and money.
  6. Inspect the premises through a professional to comply with current legislation and correspond to the type of commercial business you want to open.
  7. The professional must have a license to do so and be authorized to carry out this technical study type.
  8. We advise you that before proceeding with the license, if the expert suggests changes, these carry out immediately so that the installation is approved and the conditioning is complete.
  9. Documents that certify the premises’ security include the accreditation of the existing electrical installation, the maintenance of fire extinguishers, and any other necessary point that may vary depending on the activity.
  10. And also, after these four steps, you could submit your application to the City Council with all the documentation collected.
  11. Finally, you must pay the fees required by the said institution to formalize and obtain your business license.

1. Request

  • To obtain a business license, request the procedure from the activity in charge. Many states let you apply for a state license finished by the secretary of state’s office.
  • But in other bags, you may need to apply through another department.
  • For example, you would need to apply to the state child care division for a child care license.
  • And also, go to your city hall for a municipal permit and apply to your county government for a suitable license for that area.
  • For a federal license, you must smear to an appropriate agency, such as the Bureau of Alcohol, Tobacco, Firearms, and Explosives, to convert a license to sell weapons.

2. Cost

  • Fees for business licenses vary contingent on the institution and occupation.
  • For example, in September 2010, in Boise, Idaho, the prices were $ 116.20 for a new license, $ 34.25 for fingerprints, and $ 10 for a background check.
  • The California Contractors State License Board charges US $ 250 as an application fee and the US $ 150 for a California contractor license.
  • And also, the Federal Maritime Commission custody $ 825 for a new middle shipping carrier license.
  • In Clark County, Nevada, a US $ 45 per application and the US $ 300 for a license in the advertising business. Licenses usually last for one year.

3. Considerations

  • When you apply for a resident license, the department makes sure that you comply with the area’s local laws; if not, you first need to obtain a permit from the site.
  • If you are involved in retail sales, you must charge a tax on the items sold.
  • In this case, you must smear for a seller’s license or tax license from your state tax department, revenue management department, or state board of equalization.

4. Means

  • Small business proprietors get free training and advice from SCORE, which affiliate with the Small Business Administration.
  • And also, SBA district offices offer free training and counseling to small business owners.
  • Your local government can tell you what kind of license your business needs and how to obtain it.


Obtaining the license can be a bit slow and sometimes dull, but every second will be worth it in the future.

Please note that fines or charges for operating a business without a license are much more expensive all the time or money they could invest in processing license.

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