Your business needs a license to legally operate. Regulations vary, so it's important to understand the licensing rules where your business is – failing to comply with them can have serious consequences. Fortunately, getting a business license isn't too expensive, or time-consuming. See Step 1 to learn how to get your business license.
Step
Part 1 of 2: Understanding Local Regulations
Step 1. Decide where to get your business license
You will need to get a permit from the city where you plan to run your business. Whether you are renting office space or running your business from home, you will need to obtain a permit where your business is located.
- Each city has a database with a list of addresses contained within that city. Search online with keywords your city name + business license to find the right web page.
- You can also find the right information by going to the US Small Business Administration (SBA) website. Whether you are just starting a business, or launching a new venture, the SBA has a wealth of information, not only on rules and regulations, but on everything from how to name your business to how to raise capital. Their about permit page offers information on where to get a permit, with details specific to your local area and industry.
Step 2. Know your business code
Different types of businesses have different codes, and you'll need to know this information in order to get a license. Different codes will require a specific application process, and each city has its own set of requirements. You may not need more than an Assumed Business Name (DBA), or you may want to start a company. Whatever you're looking for, your city is sure to have a form for it. Check your city's business license website for more information.
If you're using the SBA site, you'll need to look for state agencies and narrow your location down to city or state. You will likely find a list of links and information relevant to obtaining one of the permits and registrations you need to conduct almost any type of business
Step 3. Find the form you need to fill out
Whether you go directly to your city's website or use the SBA as a source, you will find a long list of business entity types for your province. Find the one that best suits your needs.
- To get the form, you can also download from the site or go to Town Hall and pick it up in person.
- In addition to the basic form for obtaining a business license, you may need to fill out other forms and apply for a license specific to your situation. For example, if you operate a business from home, plan to remodel your building space, use hazardous materials, sell food, etc., you should ensure that you get the necessary permits.
- Follow the links to your forms, reading the important information that can be presented along the way-including descriptions, fees, requirements, and so on.
Step 4. Fill out the form
You can do this online or print out a form and fill it out by hand. Some countries make provisions for performing these functions directly online, but will generally require you to create an account before you can do so. Usually you will be asked to provide the following information about your business, in addition to other information specific to the type of business you operate:
- Business type
- Business address
- Business owner name
- Contact information
- Identity number
- Number of employees
Part 2 of 2: Getting Your Permission
Step 1. File your form
You can use an online form, or the postal service, and submit your form to your city's finance department. Your city site will contain the proper contact information for form submission.
Step 2. Application fee
Each city has its own requirements regarding the application fee for your business license. It usually ranges from around IDR 600,000, - to IDR 5,000,000, - or more, depending on the type of business you operate. There may be an additional processing fee of IDR 300,000, - or more.
Step 3. Wait to receive your license
The time it takes to process your permit will vary depending on the type of business entity you create. For example, a DBA may take only a few days, while a corporation may take up to 2 weeks. Each state has different rules.
- You may need to take your permission personally and provide identification to prove that you are the owner of the business.
- You may need to register your fingerprints, unless the city already has yours on file.
Step 4. Follow the procedures related to your business
Once you start operating it, it is important to follow the rules set by your city regarding the type of business you operate. For example, if you're opening a restaurant, make sure to get the necessary permits, such as a liquor license and health check. You must also renew your business license in accordance with the laws of your city.
- In some cities, you will need to display a business license at your business location.
- You must report any major changes to the facts of your business on the permit application immediately.
