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Legalities: What Permits Do You Need?

By Richard | June 25, 2007

When you start a new business, it is important to note that you have to need certain licenses and permits from the government to stay legal. In the excitement of planning and opening a business, this is easily overlooked, but you don’t want to be shut down for simply not filling out the correct paperwork. Staying legal is important to avoid business failure.

Depending on what type of business you want to run, your city may require certain business permits. You must make sure that your community is zoned for the type of business you wish to start. Residential areas are especially tight when it comes to business permits. Be sure before you do a lot of planning that the type of business you wish to run is possible in your neighborhood.

When you have a building for your business, there are also specific codes you must meet in order to have your building in legal operating order. First, you need to contact your local fire department if you are using flammable materials or if your building will be open to the public. This is especially important in nightclub or restaurant situations, as there will be a limit on the number of people allowed in your building at one time. You also need to look into your state or city’s air and water pollution permit requirements. In some places you need these permits to operate a business, and in others you don’t. Be sure to check with your community’s requirements regarding business signs as well. Some places have strict guidelines that must be followed regarding the size, location, lighting, and type of sign that can be installed.

Certain types of businesses also require specific types of licenses and permits. For example, if you are selling any type of food product, you will need a license from your county’s health department. These are very inexpensive, but the fines for not applying are very high. Certain professions, such as those in the medical field, also require specific certificates or licenses. Check with your state laws before you open any sort of business that deals with health, even down to massage or hair styling.

Lastly, you’ll need to apply for a sales tax license if you business is selling any taxable products or services. Again, laws vary from state to state on this issue, so be sure to check with your community’s permit requirements before opening for business.

By staying legal you can help your business succeed. Permits are usually very simple to obtain and are many times also very inexpensive. However, the fees associated with not having the proper documentation can be very high. Research your state’s laws before opening any business.

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