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BUSINESS LICENSE - DO YOU NEED ONE?
More
than likely, you "will" need a Business License. Almost all states have some
licensing requirements governing any moneymaking operation. Fortunately, a business license is inexpensive and
easy to get. While certain details may differ based on your state and locale, generally
speaking the steps to getting a business license are as follows:
1) Complete a business license application.
This involves going to the Business License Department in your area and filling out a form that
details your business. You'll be asked who the business owner is (typically
you), how much
money the business will make in its first year (your best educated guess), and other pertinent
information needed to complete the form.
2) Request a DBA. Your DBA (Doing
Business As), is your business name, also known in many states as a
"Fictitious Business Name." Generally, you can file this on the same
day you apply for your business license, but first, you have to check to make
sure nobody else has the same name registered. You can easily do a search with
the help of your county clerks office.
3) Publish your business name. This means
putting an announcement about your new business in the newspaper. This is required in order to legitimize
your DBA. This is very simple to do since the newspaper does it all the time,
you answer a few questions, pay the fee and the newspaper takes care of the
rest. Here's a helpful Tip:
Smaller papers often charge less than larger ones.
Once you've taken these steps, you may also be
required to apply for a seller's permit, establish an Employer Identification
Number, and register with the Board of Equalization so you can collect and pay sales tax. In
addition, your particular state or county may have additional zoning laws,
permits, and license requirements.
The safest way to ensure that you've covered all
the necessary bases is to visit your local chapter of the non-profit small
business advisory organizations such as the SBA
(Small Business Administration) or The SCORE
Foundation, for
detailed guidebooks on licensing requirements in your state.
Remember, you are solely responsible for all aspects of operating your own business.
The small effort you put in to legitimize your business now will save you from a
stressful time and a huge headache later when having to pay penalties and back
taxes if applicable. Simply put, "Peace of Mind" (knowing this aspect
of your business is taken care of), is an invaluable asset to any business
owner!
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