A Business License Application is a document submitted to the appropriate state authority in order to receive a license or permit. Whether you just formed a company and a license is essential to your chosen industry or you have decided to operate the business in a different way, a license will allow you to conduct your business activity in a particular geographic region.
Do not underestimate the importance of a license – to avoid legal troubles and legally operate in your area, you must submit the Business License Application and pay a filing or processing fee. You might have to pay a fee just once or make payments every year or two years to renew the license.
Each state is within the authority of the Internal Revenue Service (IRS) to determine what to include in the Business License Application Form and which additional documentation to request. There is broad flexibility when it comes to permits and licenses in different industries, so you need to find out specific application criteria for your location. Generally, you will have to give the licensing authority basic details about your business: names of the owner and company, entity’s mailing and physical addresses, telephone numbers, type of the business and field of activity, Taxpayer Identification Number (TIN) or Employer Identification Number (EIN), the current number of employees, and projected annual income of the company.
There are three main purposes to submit documentation and receive a Business License:
Failure to submit proper documentation for a business license or permit if you keep conducting your business illegally can result in additional fees for you, penalties, and operational limitations until you comply with conditions outlined by the licensing authority. In some circumstances, the company might even be forced to shut down. Check the government regulations for your area to find out if you need to file an Application for a Business License. In certain cases, you only need a local license to sell goods and provide services within your city or county. If you plan to open multiple offices or stores in different counties or states, prepare to submit an application in each jurisdiction.