Making It Legal

Do you really need a license to get homebased operations under way?
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Do you really need a license to get homebased operations under way?

You need a license to drive a car and one to get married, but do you need oneto start your homebased business? Maybe, maybe not. But either way, you shouldfind out for sure before you officially open up.

"You could be shut down if the authorities find out you're operating withoutthe proper licenses," says Joan Scheel, assistant state director of the UtahSmall Business Development Center in Salt Lake City. More than likely, they'lljust tell you to get a license, but you might have to pay fines or penaltiesfor an illegal operation. Either way, Scheel points out it's much easier toavoid problems by starting out in full compliance with the law.

So how do you know what you need? Business and professional licensingrequirements vary by state and sometimes even by community. Scheel adviseschecking with your state's tax commission, department of revenue, or businessand professional regulation department to find out whether your businessrequires a state-issued license. In addition, you may need a local license orpermit (for details on that, contact your city hall or county administrationoffices). Or visit your nearest Small Business Development Center for help witha wide range of start-up issues.

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Use code MARKET2021 through 4/24/21 to save on 12 marketing books for entrepreneurs that are recommended by entrepreneurs:
  • Digital Marketing Handbook
  • No B.S. Guide to Direct Response Social Media Marketing
  • Ultimate Guide to Youtube for Business
  • And more
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur