As you’re starting up your
business, you will need to open a business checking account because
the check will be in the business name - not in your own personal
name.
To open a
business checking account, banks will require a business license or
a DBA certificate.
Don't know Where To Start?
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to
Take a Short Quiz
to see how to get your business license or if you really need a
license or any other document to start your business.
General Information About
Business Licenses:
Licenses are issued by the state, city or county where your business will be
located. The application for the
business license will
have instructions on how to apply and it is online. Some
governments may require that you present the application in person
but it is rear. You will have to pay your annual business tax
in advance and payment requires a check with the application, some
will bill you for payment. The type of payment is usually by check
otherwise, alternative methods will be in
the instructions.
In most cases this would not be an issue, but some local
governments my require you to complete
the application in blue ink, or typing the application, or even sending
two copies.
Fees
Most small business owners starting a business want to know how much is this going
to cost. Within any one state, the
application fee is usually between $30 to
$135, and the license is valid for one year. Business
licenses are not transferable -- any change of address, ownership,
type of business, or other information may invalidate the business
license, but you will be given credit from some local governments if
your new address is within the same locality.
The Application
Most applications are one to two pages
and will probably take ten to 30 minutes to complete. If you
are filing other documents, the online application is for all
documents so you don't need to waste time filling out many
applications. The applications ask for basic information
about your business. The first section will be administrative info:
name, address, contact information, type of organization, and other
information. Type of organization
or legal business structure, means Sole
Proprietorship, Partnership, Corporation, Non-Profit or Husband and
Wife. After
this basic business information, the questions to relate to your particular
business locality. Here are some examples:
- Do you have a State Contractor’s License for this business?
- Number of employees?
- What will be stored or dispensed at this location:
food/drink; alcoholic beverages; firearms/gunpowder?
- Will you be providing: live music; dancing; pool; card
tables?
- How is your property zoned?
- Are you delinquent in any taxes?
How to Get Your Business License
Application
This is the Information Age. Many governments
now have the application available online.
All you need to do is fill out the form and
submit it. You can call for
information about obtaining additional information.
What if you cannot fill the business application online? Here is
a link for business licenses.
After you submit the information you will obtain a
business license. Then you'll need a DBA fictitious business name. What is a
DBA
fictitious business name and do I need one? See the article titled,
Getting a DBA Fictitious Business Name.
There is information online about local governments. The
National Association of Counties (NACO) has U.S. counties listed on
their site, with interesting statistics and even better--the
county’s web site. To locate the business license, first check
to see if there’s a search function within the site. If that’s
available, use it! If there is no search function, you want to find
that section of the site with business license
information. There is business license information under
these various search terms:
- County Departments
- Departments and Agencies
- Tax Commissioner/Treasurer
- Departments and Agencies
