Making License Applications

What Is Business Licensing?

A business license is a government-issued document that confirms a company is safe for the public to patronize. The type of licenses required depends on the nature of the business and its location. A business license allows a company to operate legally within a specific jurisdiction. Along with business registration, it is typically a state-level requirement. The type of business activity and the organization’s location usually determine which licenses are necessary. Unfortunately, there is no universal source for all required permits based on business type and jurisdiction.

Why You Need a Business License

Business licenses hold companies accountable for their activities and protect public health and safety. Professional licenses indicate the level of competence and expertise a professional possesses. Additionally, businesses must obtain sales tax permits for the sale of taxable goods or services, enabling the government to track revenue for tax purposes. The three main reasons to obtain a business license are:

• To recognize your company and ensure accountability for your activities
• To protect public health and safety
• To track finances for tax purposes