Licenses and Permits That Startup Owners Need To Think of

Starting on your  business undoubtedly requires a lot of work. On top of all the other things a future business owner needs to think of, are the licenses and permits needed for the new business. Startups need permits for a lot of things, but which ones you need specifically is determined by the kind of business you’re starting. The requirements are regulated by federal, local, state, and country rules. It doesn’t have to be hard getting your licenses if you know exactly what you need.

1. Get familiar with the actual purpose of licenses and permits

These are needed for a number of things, but most importantly they are a requirement due to taxation. This is because the government needs to keep an eye on the amount of revenue taken for taxation purposes.
It doesn’t have anything to do with the level of expertise of the business owner, as some people have been lead to believe. A good example of this would be a seller’s permit.

Another reason you need to get your licenses and permits is the government’s interest in making sure certain businesses are properly regulated. This ensures public safety. For instance, it’s important for food service. The same applies to factories which could harm the environment.
Principally, if you’re planning to start something which will serve the public, and even a small chance of harm is present, you need a license.

2. Licenses and permits if you’re working from home

If you have a home-based startup company, it can get confusing whether you need a license or not. The line can seem rather blurry because you are at home, but you’re still running a business.
The answer to this question is easier than it may seem at first.

Yes, you will need a license. This is because your startup company is still a physical location. In this case, you’ll have to check out the specific permits and licenses home-based businesses need. If your home startup involves frequent customer visits, for instance, if you’re starting a hairdresser’s salon, the license becomes even more important.
Despite the startup being set in your home, that always files under services to the public.

3. Licenses and permits for an online business

A home-based business is still a physical location, but what about online startups? This is where it can get complicated for most business owners. Again, it’s not hard to find out if you need a license for your online business.

The matter of the fact is that you need to view it as a brick-and-mortar. That means that there are high chances you’ll need all the permits and licenses as if you were a physical business. A tricky part with an online business can be when you’re offering your services to people who don’t live in the same area. People then tend to think they need to follow all the licensing requirements in all the areas they offer the services. In fact, though, you only need to follow your own, local, rules and policies.

4. Determine whether you actually need licenses and permits

Finally, you should be aware of the fact that licenses and permits aren’t the same for every business, so you’ll first need to determine what industry your startup company is in.
Furthermore, they aren’t the same for every state, county, or country. This is why you’ll need to check what type of licenses and permits your business needs locally.

For example, the law for getting a building license NSW isn’t the same as in other parts of Australia. 
Though this is a final piece of advice for startup owners, it might be the most important one. Make sure you’ve determined the correct type of operating license or permit that you’ll need before you start anything else.

Conclusion

Obtaining a number of permits and licenses is often a long and tiresome road, but it is a necessary one. It allows your startup to grow. You’ll open so many new doors for your business, and you’ll make it into something truly remarkable. Even though the process is a bit of an inconvenience, you will get everything you need for a healthy company, and that’s the most important thing.