Business License Types

business lawyer

Some businesses don’t require a license, but it depends on multiple circumstances, such as where your business is located, the industry, structure, and size of your business. Business law is not the easiest thing to grasp, and you may find it very useful to talk with an experienced business formation lawyer, about your specific business legal needs. 

There are multiple different types of business licenses, however, your specific area could have its own requirements that you need to be aware of. Some of the general types are:

  • General Business License
    This license is for businesses with a physical location and typically takes about 45 days to obtain. You may need to also research, or get legal advice from a business lawyer, about any special processes or requirements in your area.
  • Special Business License
    The special business license is intended for sensitive businesses that may have pose a risk or danger to their patrons in some way and acquiring the license willy typically include getting fingerprinted by the local police and regular inspections.
  • Doing Business As (DBA) License
    This license is used for operating a business under a different name than the sole proprietor, and can be useful when filing taxes as well as allow you to create bank accounts under the business name. The process for obtaining a DBA license is relatively simple and can be done online or in person. 
  • Direct Sales License
    This license is required for businesses that conduct sales or contacts outside of their business location, which could include the customers home or office. It may even include door-to-door sales. With this license there are typically local requirements that you will need to be aware of when creating your business. 
  • Municipal and Provincial Licenses
    Some industries and businesses have more requirements regarding how many can exist in a certain area, and this is controlled by the government. You will want to be clear on this for your area before moving forward with this type of business.
  • Professional/Occupational License
    For businesses that offer professional services, such as a law office, tax services, chiropractor, cosmetology, etc. will need this license. As part of the application process, you and any employees or partners will need to prove that you are qualified to perform the professional service.
  • Federal Business License

Typically, this license is for when you do business across state lines and can have different requirements depending on the industry and area.

  • Sales Tax License
    Just as it sounds, this license allows you to charge sales tax for your goods or services and then pay the appropriate taxes for your business. This requirement can vary depending on the area where you operate.

Talk with a Business Lawyer

Whatever industry or location you are starting your business in, you may find it beneficial to work with a business lawyer. Contact a law firm today for a consultation.