Have you ever heard the saying, the best things in life are free? Yeah, anyone who has ever taken that saying too literally is sitting in jail or using someone else’s Wi-Fi (as their data is being stolen).

The truth is most things cost money. It cost money to start a business. It may even require a license or permit if you want to run a legit business.

Don’t let this discourage you though. Some of these permits may not cost any money. And some of you may not even need a business license or permit, depending on the type of business you start.

However, you won’t know that until you check the laws of your state, county, and/or city. So, each state may its own set of rules based on different factors such as location, type of business, etc.

Keep in mind that the names of the licenses and permits needed to start a business will also vary from state to state.

Types of business licenses and permits

A business license is a piece of paper that allows your business to operate legally within your state or your city’s limits.

Every state has their own types of business permits and licenses. Also, the names for the permits and licenses may not be called the same thing in every state.

However, there some things that remains the same. For example, you must register your business if it’s a limited liability company or corporation. Everything else, such as business permits, business licenses, DBA, EIN, etc. is just optional (unless your type of business requires it).

Also, the Feds will usually not play a part in starting your new business. So, your state would usually give you any licenses and permits for your business.

However, if your business involves any of the activities below, you’ll need to contact that federal agency to make sure your business is legit.

Either way…

Federal Permits:

Agriculture: importing or transporting animals, animal products, biotechnology, or biologics across state lines

Alcoholic beverages: import, manufacture, wholesale, or sell alcohol

Aviation: operate an aircraft or transport people or goods via an aircraft, or aircraft maintenance

Firearms, ammunition, and explosives: imports, deals, or manufactures firearms, explosives, and ammunition

Fish and wildlife: import or export wildlife products or do any activities that relate to wildlife

Commercial fisheries: business involves any sort of commercial fishing

Maritime transportation: provide shipments via the sea or transport items via the ocean

Mining and drilling: the business involves drilling for oil, mineral resources, or other natural gas on federal lands

Nuclear energy: any fuel cycle facilities or businesses that produce commercial nuclear energy or get rid of nuclear materials

Radio and television broadcasting: the business uses the radio, television, wire, cable, or satellite to broadcast information

Transportation and logistics: the business operates overweight vehicles. Please note that the permits for overweight vehicles are issued by a local state government.

State licenses and Permits

Business license: depending on the type of business that you start, you may have to get a business license that allows you to legally operate within a city’s limits.

Seller’s Permit: the business involves selling (or leasing) goods, products, and/or merchandise.

Health Permit: the business involves selling food or beverages to the public., e.g., restaurants, food trucks, catering businesses, etc.

Zoning permit: required to build a new building or improve (or make changes to) an existing building. For example, it can include building a new house or installing a fence.

Home Occupation Permit: this type of permit may be required if you’re operating a business inside of your home. However, it depends on the rules of your city, county, or state whether you can operate this type of business inside your home and/or whether you’ll need a permit. Some common home-based businesses include daycares, hair salons, etc.

Professional Licenses: most states require professional licenses if the business involves a specialized or a particular industry. For example, a specialized industry would include doctors, lawyers, hairstylists, psychologists, dentists, etc.

Outdoor Advertising/Display Permits: This may be required if a business uses advertising, e.g., signs or banners outside, e.g., billboards.

Building or Construction Permit: If you are planning to start a business that involves a new building or remodeling or construction, then you will need a permit.

Wrapping It Up

Don’t get overwhelmed by the process of having to secure a business permit or license.

A lot of the business permits or licenses listed above may not apply to you (if any). It really just depends on the type of business you want to start.

So, the best thing you can do is figure out your next multi-million dollar business idea.

Once you do that, you can look up the licenses and permits needed to operate a legit business. So, get started today and don’t procrastinate any longer.

Will you go big and start a business that needs permits and/or licenses? Or will you start with a small business and work your way up?