How to Obtain a Business License

Once you have decided to start a business the first thing you will need to do is find out if your county or state requires you to obtain a business license. Most counties do require that you go through a formal process of setting-up your business. While the process may cost you a few dollars, it is a small price to pay when you consider that you will likely be fined if you operate a business without a license.

The first step in obtaining a business license is to decide what the name your business will operate under. It is very important to decide this before you file for your license. This will be the name your business is known as when you look at business banking options, credit cards, and file your state and federal income taxes.

Once you have decided on a name for your business the next thing to do is to call or visit your local county clerk's office. Here you can obtain a packet of information on the requirements of obtaining your business license. If you will be operating out of your home you will be required to have the local County Planning Department sign your business license request that you live in an area where you can conduct your specific business.

Once the Planning Department has signed off on your request for a business license you will then need to go back to the County Clerk's Office and pay a fee for your license. The cost of the license depends on your local laws but they generally run about $75.00.

Once you have completed filling out the county form, and have paid their fee, you will then be given a "Fictitious Business Name" form if your business name does not contain your last name in it. Some areas will let you do business as your last name without this Fictitious Business Name filing, however, if you are using another name for your business you will have to file one. So, if you are John Smith, you could do business as Smith Plumbing without filing the Fictitious Business Name statement. However, you could not do business as A-1 Plumbing without it.

If you are required to file a Fictitious Business Name statement then you will take the form that the local county clerk gave you and submit it to a local newspaper for publication. The Fictitious Business Name statement will need to be printed in a newspaper in the area in which you will be performing your business. The Fictitious Business Name statement will have to be published for one day per week for four weeks in a row to be legal. The cost of publishing a Fictitious Business Name statement varies from location to location but generally costs about $200.00 - $400.00 depending on the size of your local newspaper.

After you have paid the county fee, and published your Fictitious Business Name statement in a local paper for four weeks, you will receive your business license in the mail. Once you have your legal business license in hand, then you can obtain a business bank account in the name of your business and apply for business credit services.

Obtaining a business license is not a hard thing to do, but is very important to make sure your business is legal.