Business license
Encyclopedia
Business licenses are permits issued by government agencies
that allow individuals or companies to conduct business within the government's geographical jurisdiction
. It is the authorization to start a business issued by the local government.
A single jurisdiction often requires multiple licenses that are issued by multiple government departments and agencies. Business licenses vary between countries, states, and local municipalities. There are often many licenses, registrations and certifications required to conduct a business in a single location. These are not needed for sole proprietorships.
Business registration is required by most jurisdictions. A business license can be a business registration, but many jurisdictions require further licenses beyond registration.
The business activity and physical location (address) determines most license requirements. Other determining factors may include the number of employees and the form of business ownership, such as sole proprietor or corporation. Incorporation is not the same legal process as being licensed to do business. Government agencies can fine or close a business operating without the required business licenses.
has a list of links to State websites for State licensing requirements. Each State has its own business registration and licensing requirements. Business.gov
is an official business link to the U.S. Government. Business.gov, managed by the U.S. Small Business Administration.
Most individuals and companies doing business in the District of Columbia must obtain a Basic Business License from the Department of Consumer and Regulatory Affairs. Separately, organizations (including non-profits and cooperatives, but not including sole-proprietorships and general partnerships) must register their business. Many types of businesses require additional certification or permits beyond the Basic Business License and registration. D.C. requires a "Clean Hands Self-Certification" from most applicants, which is an affidavit stating that the applicant does not owe more than $100 to the District. Tour Guides must submit a Physician's Certificate. Fees for businesses licenses vary. The fee for a Special Event license such as a marathon is $209. The license for a movie theater costs $1,079 per year, for a grocery store $289 per year, for a beauty shop $78 per year. (2003 schedule of fees, current as of March 2007) A Project Management Firm does not require a Basic Business License, nor does a Handyman. Residential House Painters must submit a Home Improvement Contract signed by the homeowner.
Physicians and other health care professionals require licenses from the Professional Licensing Administration in the Department of Health.
Certain actions are required by all businesses in Pennsylvania in order for them to continue in business in Pennsylvania
. This includes New Hire Reporting (including reporting oneself as a new hire when starting a business).
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...
that allow individuals or companies to conduct business within the government's geographical jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
. It is the authorization to start a business issued by the local government.
A single jurisdiction often requires multiple licenses that are issued by multiple government departments and agencies. Business licenses vary between countries, states, and local municipalities. There are often many licenses, registrations and certifications required to conduct a business in a single location. These are not needed for sole proprietorships.
Business registration is required by most jurisdictions. A business license can be a business registration, but many jurisdictions require further licenses beyond registration.
The business activity and physical location (address) determines most license requirements. Other determining factors may include the number of employees and the form of business ownership, such as sole proprietor or corporation. Incorporation is not the same legal process as being licensed to do business. Government agencies can fine or close a business operating without the required business licenses.
United States
In the United States, the Small Business AdministrationSmall Business Administration
The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses...
has a list of links to State websites for State licensing requirements. Each State has its own business registration and licensing requirements. Business.gov
Business.gov
Business.gov is sponsored by the U.S. Small Business Administration to provide small business owners with access to federal, state and local government resources from a single access point. The site provides innovative information services that save time and money, engage citizens to participate,...
is an official business link to the U.S. Government. Business.gov, managed by the U.S. Small Business Administration.
Example: Washington, D.C.
In Washington, D.C.Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
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- The Department of Consumer and Regulatory Affairs (DCRA) is the District of Columbia's regulatory agency. DCRA ensures the health, safety, and economic welfare of District residents through licensing, inspection, compliance, and enforcement programs. In addition, Department of Health (DOH) issues certain professional licenses, District Department of TransportationDistrict of Columbia Department of TransportationThe District of Columbia Department of Transportation is an agency of the government of the District of Columbia which manages and maintains publicly-owned transportation infrastructure in the District of Columbia...
(DDOT) regulates public space, and Office of Zoning (DCOZ) controls land use.
- The Department of Consumer and Regulatory Affairs (DCRA) is the District of Columbia's regulatory agency. DCRA ensures the health, safety, and economic welfare of District residents through licensing, inspection, compliance, and enforcement programs. In addition, Department of Health (DOH) issues certain professional licenses, District Department of Transportation
Most individuals and companies doing business in the District of Columbia must obtain a Basic Business License from the Department of Consumer and Regulatory Affairs. Separately, organizations (including non-profits and cooperatives, but not including sole-proprietorships and general partnerships) must register their business. Many types of businesses require additional certification or permits beyond the Basic Business License and registration. D.C. requires a "Clean Hands Self-Certification" from most applicants, which is an affidavit stating that the applicant does not owe more than $100 to the District. Tour Guides must submit a Physician's Certificate. Fees for businesses licenses vary. The fee for a Special Event license such as a marathon is $209. The license for a movie theater costs $1,079 per year, for a grocery store $289 per year, for a beauty shop $78 per year. (2003 schedule of fees, current as of March 2007) A Project Management Firm does not require a Basic Business License, nor does a Handyman. Residential House Painters must submit a Home Improvement Contract signed by the homeowner.
Physicians and other health care professionals require licenses from the Professional Licensing Administration in the Department of Health.
Example: Pennsylvania
Pennsylvania allows online registration of small business start-ups, but does not provide licensing guidance.-
- The Pennsylvania Open for Business Online Business Registration Interview (OBRI) is a step-by-step wizard that guides users through the process of registering an enterprise with the Departments of Labor & Industry, Revenue, and State.
- The OBRI is a business registration tool and is not intended to be a replacement for professional consultation with qualified practitioners. The laws and regulations governing business start-up, practice, and expansion are varied and compliance with such standards depends upon the particular circumstances of a business. If legal advice or other expert assistance is required, the services of a competent professional should be sought.
Certain actions are required by all businesses in Pennsylvania in order for them to continue in business in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
. This includes New Hire Reporting (including reporting oneself as a new hire when starting a business).
External links
- Business Licenses All U.S. nationwide business licenses, permits, and tax registrations online
- How to Obtain a Business License - a wikiHow article on getting a business license.