What are the most common types of business licenses?
Running a business has always required a permit. Even long ago, cities and towns compelled enterprising vendors to join a local guild. Today, various licenses and agreements have replaced guild membership.
Find out the business license types you may need.
What are the different types of business licenses you may need for your business? The type of license you need depends on your business structure, the kind of business you will be doing, and your location.
You may also need a professional license, a sales tax license, or a home-based business license. Start by visiting your state’s Department of Commerce website to determine what licenses you will need to get down to business.
Jurisdictions different types of business licenses can fall under.
- Federal license. If your business deals in products subject to federal regulation — like agriculture, transportation, or broadcasting — you will most likely need a license from a federal agency to do business. These licenses are distributed by the applicable regulating agency.
- State license. The majority of businesses will need a state business license, but requirements vary from state to state. When you register your business with your state’s Department of Commerce, you will also identify how your business is structured. Different structures have different tax and operating requirements. Your business could be a partnership, corporation, or limited liability company (LLC).
- County or city license. Some cities and counties also require business licenses in addition to a general state license. These licenses usually deal with specific aspects of doing business, like zoning, health and safety, or signage.
What are the different types of business licenses?
No matter what business you run, you most likely need at least one business license.
General business license.
Most cities and states require a general business license. It registers you to do business within the local jurisdiction. Check your local regulations to find your business licensing agency.
DBA license.
The doing-business-as license allows you to run a business under a different name than what is on your business license. For example, you could have a store called Frank’s Flowers but have a business license registered to Local Flower Shops LLC.
Sales tax license.
This license allows your business to collect sales tax from clients and customers. Most locales require businesses to collect sales tax but contact your local commerce department to see if you need one.
Safety permits.
Safety permits ensure your business follows appropriate safety regulations. Make sure to get the right permits.
Sign permit.
If you want to advertise your business with a sign, you need a sign permit. Again, local regulations vary, so check yours before installing signs or lights.
Zoning license.
You might need a zoning license to ensure your operation is allowed at your location. For instance, you probably can’t open a liquor store next to an elementary school.
Is applying for common types of business licenses easy?
Most basic business licenses are simple to get. Many applications can be completed online as digital documents, eliminating the need for paper. However, for more regulated industries or in-depth partnership agreements, you may need to visit a government office in person or have documents notarized.
Sign all types of business licenses with e-signatures.
Whatever license you need, legally binding e-signatures make signing it quick and easy. Adobe Acrobat lets you request signatures, share PDF documents, and track the signature process to make sure you get your permits on time.
Explore more ways Acrobat for business can help you run your business.
