Business Permits

Depending on the type of business you own, you may need toobtain some of the following permits to show compliance with localand state laws:

Seller’s Permit If you’ll be buying merchandise forresale in a state that collects sales tax, you’ll need a resale taxnumber, also called a seller’s permit. Suppliers you buy from willwant your number for their files; if you sell to dealers, get theirnumbers for your files. That way you’ll have a record for why youhaven’t collected tax on a sale, which is only collected on salesto the final user in your state. If you sell to someone in anotherstate, you’re not required to collect taxes for that state–onlythe ones in which you maintain offices or stores. If you sell todealers who don’t have a tax number, you’ll have to charge themsales tax on their purchases.

Where and how do you get such a permit? Agencies issuing permitsvary from state to state; generally the Equalization Board, theState Sales Tax Commission or the Franchise Tax Board has thisresponsibility. Contact the entity that governs taxes in your stateand apply for your resale tax or wholesale permit. You’ll have toprovide documentation that proves you’re a retailer–make sure toask what’s acceptable.

Health Department Permit If you plan to sell food, eitherdirectly to customers or as a wholesaler to other retailers, you’llneed a county health department permit. The cost for this permitvaries depending on the size of the business and the amount andtype of equipment you have. The health department will want toinspect your facilities before issuing the permit.

Fire Department Permit You may need to get a permit fromyour fire department if your business uses any flammable materialsor if your premises will be open to the public. In some cities, youhave to get this permit before you open for business. Other areasdon’t require permits but simply schedule periodic inspections ofyour business to see if you meet fire safety regulations. If youdon’t, they’ll issue a citation. Businesses such as theaters,restaurants, nightclubs, bars, retirement homes, day-care centersand anywhere else where lots of people congregate are subject toespecially close and frequent scrutiny by the fire department.

Air And Water Pollution Control Permit Many cities nowhave departments that work to control air and water pollution. Ifyou burn any materials, discharge anything into the sewers orwaterways, or use products that produce gas (such as paintsprayers), you may have to get a special permit from thisdepartment in your city or county.

Environmental protection regulations may also require you to getapproval before doing any construction or beginning operation.Check with your state’s environmental protection agency regardingfederal or state regulations that may apply to your business.

Sign Permit Some cities and suburbs have sign ordinancesthat restrict the size, location and sometimes the lighting andtype of sign you can use outside your business. Landlords may alsoimpose their own restrictions–they’re likely to be most stringentin a mall. To avoid costly mistakes, check regulations and securethe written approval of your landlord before you go to the expenseof having a sign designed and installed.

County Permits County governments often requireessentially the same types of permits and licenses as cities. Ifyour business is outside of any city or town’s jurisdiction, thesepermits apply to you. The good news: County regulations are usuallynot as strict as those of adjoining cities.