Frequently Asked Questions
Q: Who issues business licenses, permits and tax registrations?
A: Business licenses, permits and tax registrations are typically issued at all levels of government – federal, state and local (city, county or town). Depending on the industry, how business is transacted and where the business is located, you may need to obtain licenses from several of these levels.
For example, if you decide to open a bar and restaurant in Atlanta, you will need to obtain all necessary licenses and permits from the city of Atlanta, the state of Georgia and the US government. As a result, you will most likely need a Federal Tax ID (EIN) Number from the IRS, a license to sell alcoholic beverages from the state of Georgia, a State Tax ID Number to collect sales tax and withhold payroll taxes, a health permit from the city of Atlanta to prepare and sell food, as well as a basic business license to operate the restaurant within the city. These are just some of the possible licensing requirements you may incur when operating a restaurant in Atlanta.
There are over 19,000 separate licensing jurisdictions in the US and each has its own particular licensing requirement. As a result, it is very important to review the types of requirements that may be involved for your business.
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Q: What types of licenses, permits and tax registrations does a business commonly need?
A: There are a number of licensing, permit and tax registrations that may be imposed on a business. A list of the most common licensing requirements is provided below.
- Basic Business Operation License - from the city in which your business will operate, or from the local county (if the business will be operated outside of the city's legal boundaries).
- Federal Tax ID (EIN) Number - from the IRS, also called a tax identification number or employer identification number (required for almost all types of businesses). BizFilings can assist with the obtainment of the Federal Tax ID (EIN) for your business. This service is included in our Complete Formation Service, can be added to our Standard or Basic Formation Services or can be purchased as a stand-alone. View our Federal Tax ID (EIN) page to learn more.
- State Tax ID Number - from your state’s department of revenue or taxation, also called a tax registration number. BizFilings can also assist with the preparation of the State Tax ID Number form in states that require a State Tax ID Number. Our formation order form will include this option, if it is available in your desired state of formation.
- Fictitious Business Name Registration - from the state or local jurisdiction, also called "dba" or "doing business as" registration (required for almost all types of businesses). BizFilings prepares and files DBA registrations for businesses in all 50 states. View our DBA page to learn more about this service.
- Home Occupation Permit - from the local government (may be required if your business is home-based)
- Zoning and Land Use Permits - local governments’ zoning lows may prohibit certain business activity in designated areas
- Building Permit - if you plan on remodeling or building a commercial space, you'll need to get a building permit
- Health Department Permit - primarily if your business involves the preparation and/or sale of food
- Sales Tax License/Sellers Permit - for the selling of almost all products and services
- Fire and Police Department Permits - especially for businesses that will attract large numbers of customers (i.e. nightclubs and bars).
- Alarm Permits - for businesses having an alarm that is connected to a monitoring service
- Special State-Issued Business Licenses or Permits - if your business will involve the sale of the following types of products: Liquor, Lottery tickets, Gasoline and Firearms
- Special State-Issued Occupational Licenses - if you will be offering a number of state-regulated services, including: Medical care, Auto repair, Real estate sales, Tax services, Insurance sales, Cosmetology, and Legal representation (attorneys)
Note: This is in addition to a professional license required for each individual practicing the above.
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Q: What are the consequences of failing to obtain the necessary licenses, permits and tax registrations?
A: Failure to comply with the necessary licenses and permits, could jeopardize the business, result in expensive penalties or leave the business owner with no legal protection.
Due to the continuous rise in traditional taxes, governments are always looking for alternative revenue streams, which often times results in increased vigilance for business license evaders. Many governments resort to hiring third party collectors to assist in collecting from these evaders.
Some of the pitfalls included in evading these licenses include:
- You may not be able to open your new location
- You may not be able to add the item, service or structure
- Your location may be padlocked
- You may be hit with costly penalties and interest, or even personal liens
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Q: Which licenses, permits and tax registrations do I need?
A: Licensing requirements vary depending on the industry, how business is being transacted as well as the location of the business. BizFilings’ Business License Application Package includes a complete overview for your business and provides you with all the required license, permit and tax registration applications required for your business.
Our Business License Application Package includes:
- A complete overview of the licenses, permits and tax registrations that may be required for your business
- The appropriate licensing authority’s contact information, including name, address, telephone number, etc.
- The actual license, permit and tax registration applications and associated documents necessary to obtain these documents
- Filing instructions for how and where to return your completed applications in order to obtain the licenses, permits and tax registrations
Note: BizFilings does not assist with obtaining the necessary licensing requirements for professional businesses. Contact the federal, state and local governments for these requirements.
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Q: What are “highly-regulated” industries?
A: Certain industries are highly-regulated by government agencies, and often incur additional licensing and permit requirements that other industries do not. In many cases, we impose additional charges when we prepare a Business License Application Package for businesses in these highly regulated industries.
Highly-regulated industries can include, but are not limited to:
- Agriculture – Pesticides & Fertilizers
- Animal related
- Aviation
- Collection/Debt Management
- Cosmetics/Vitamins
- Daycare
- Educational Services
- Explosives & Firearms
- Financial Services
- Gaming
- Hazardous Materials
- Healthcare
- Mining
- Oil/Gas
- Social Services
If you order a Business Licenses Application Package and we determine additional charges will be required, a member of BizFilings’ customer service team will contact you prior to proceeding with your Business License Application Package.
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Q: Will BizFilings obtain the necessary licenses, permits and tax registrations on behalf or my business?
A: No, BizFilings does not obtain the licenses on behalf of your business. We can however, provide you with all the necessary documents and applications required so that you may work with the federal, state and local governments to ensure your business is in compliance with these requirements.
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Q: How long does it take for BizFilings to complete the overview and provide the necessary applications for obtaining the appropriate licenses?
A: The typical turn-around time for BizFilings’ Business License Application Package is dependent on whether the service is ordered as an add-on or as a stand-alone service. If this service is added to a Formation package, BizFilings will begin the process after we receive approval of your formation filing from the state. If the package is ordered as a stand-alone, we will begin processing upon receipt of payment. Typical turn-around time frame after we begin the process is 2-3 days.
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