Business Licenses

Business Licenses

| Jun 2, 2020 | Firm News |

THE CHALLENGE:

When starting a business a question often arises. Does my company need a business licenses to operate in my respective state and if so what is the process to obtain one?

BUSINESS LICENSE DEFINED:

A business license is a legal document that grants companies the right to operate a business in their designated state. Typically, applications for business licenses occur after each business decides which form of business entity they will register as. Different types of business licenses include general business operating license, seller’s license, tax registration and permits, professional license, and environmental permits. Some industries may also be federally regulated and would require applications for additional licensing.

THE SOLUTION:

The general steps to acquiring licenses goes as follows. First, research must be done regarding regulations in the business’ area. Then, an application must be submitted, and any required fees must be paid as well. Additionally, some states may require the business to wait until the license is processed and approved to begin operating. All businesses must abide by these guidelines and research whether the state requires them to wait during the process. Finally, the license must be renewed according to the guidelines of the state, city, or county.

One example is the state of Colorado which does not require any type of generic license in order for businesses to operate. However, it does require licenses from specific industries like the auto industry, gaming, liquor, tobacco, marijuana, and racing. Another example is the state of Nevada which does require all businesses to obtain a license before operating and an annual renewal of the license as well. One of the best resources to obtain information about business licenses is the Secretary of State’s website of each state. All information regarding requirements, costs, and applications would be indicated in such website.

The regulations, costs, and requirements to obtain business licenses all vary by state and by the type of business being operated. It is imperative to research the regulations of each state when starting a new business.

Article By Nouvelle L. Gonzalo Esq. and Macarena Bazan

Nouvelle L. Gonzalo, Esq. is a U.S. and international corporate lawyer who works with companies across the globe. She is the managing attorney of Gonzalo Law LLC, a U.S. and international corporate law firm with offices in Florida and Ohio. In addition to the active practice of law, she has served as adjunct faculty of international corporate law for several years. She was recognized as a rising star by the national organization, Super Lawyers, in 2019 and 2020. Her practice areas include: international corporate law, intellectual property law, and nonprofit law. You can contact her with any questions or for a complimentary consult at [email protected].

Macarena Bazan is a current sophomore at the University of Florida majoring in Political Science and Business Administration with a specialization in Pre-Law. Macarena is a Legal Intern for Gonzalo Law a U.S. and International Corporate Law Firm, the Vice President of the University of Florida chapter of Phi Alpha Delta, and a member of the Honors College. She placed 3rd in the National Phi Alpha Delta Mock Trial competition and has received the President’s Honor Roll and Dean’s List throughout her college career. Macarena has been with Gonzalo Law since January 2020. She focuses on case research, drafting and editing contracts, and additional research.