Depending on where you live and the nature of your business, you may or may not require a business license to operate a home-based business.
Most of the time, a quick visit to your municipal office can steer you in the right direction. They will be able to tell you where and how to obtain licensing information for professionals and small business owners.
Once you have filed your application, your municipality’s Planning Department will inform you of any zoning requirements which may affect your business.
It is crucial that you contact your state’s Department of Commerce in order to find out whether or not your home-based business falls under licensing guidelines. In addition, check out whether you will need any of the following permits:
Health Department Permits
If selling food is part of your business, whether you sell directly to customers or operate as a wholesaler to others, you will be required to obtain a county Health Department certificate.
The cost varies from one location to another and is generally based on business size and the type of equipment your business uses for production.
As a general rule, fees for Health Department Permits fall within the $25 – $50 range. The Health Department will most likely arrange to have your premises inspected prior to issuing this permit.
Fire Department Permits
Depending on whether or not your venture requires the use of any flammable materials for production or if your business caters to traffic from the public, you may be required to obtain a fire department permit.
Again, this varies from one municipality to another with some areas only requiring periodic fire inspections in order to ensure your premises meets all fire safety codes.
Any business that encourages a lot of people to gather, such as restaurants, boarding houses, or bed and breakfast will be looked at very carefully by the fire department. You will be required to adhere to all fire department requests in order to bring your property up to the necessary fire code standards.
Environmental Permits
Most municipalities now have dedicated departments that deal solely with controlling air and water pollution.
Depending on the nature of your business, the Environmental Protection Agency (EPA) in your district may require special permits prior to any business undertaking. You will have to inform this department as to whether or not you will be burning material, discharging refuse into sewers or waterways or using a product that may produce gaseous emissions (e.g. spray paint).
Closely regulated permits will be issued should your operation fall under any of these criteria.
In addition, the EPA may insist that their approval be granted prior to the start of any construction. Again, check with your state or federal governing power to find out about any regulations that affect your business.
Sign Permits
Most areas now have ordinances regulating the size, location and type of signage allowable. Check with your Zoning Department and get written approval before designing, manufacturing or erecting any signs.
A word to the wise
In order to avoid costly and often damaging repercussions in the future, always check with your County, State and Federal Licensing Commissions prior to beginning any home-based business. The footwork you do now may save you countless headaches and incalculable dollars in the future.
The above article is intended as general information only and should not be construed as financial or legal advice.
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