Episode A1.005 Licenses & Permits

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Introduction
Let’s talk Licenses & Permits. Let’s include both in the list of things that can make, or break, our startup.  Today’s show is building on our previous four shows this season as we explore the necessary licenses and permits that you need to bring your business into the world.
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Show Objective
Learn how to obtain the proper licenses and permits that allow you, and your business, to flourish.  
 
Key Concerns:
There are costs and benefits to any license or permit.  In most places it is illegal to operate without a business license and/or permit.  We will explore these costs and the benefits of proper licensing in this hour of the show.


What You Need to Know
Over the past few weeks you’ve heard about business financial terms, writing a business plan, as well as the federal, local, country financial checklists.  Here are the issues that you will need to resolve in order to apply for most licenses and permits:·                

1. Pick your biz location
2. Choose a biz structure (sole proprietorship, partnership, LLC, Corporation – C corp, S corp, B corp, close corporation, nonprofit corporation, -Cooperative or combine so that the biz is understood as a tax status.  See more about this here: https://www.sba.gov/business-guide/launch-your-business/choose-business-structure
3. Choose your biz name.  Learn more about that here: https://www.sba.gov/business-guide/launch-your-business/choose-your-business-name
4. Register your biz with the federal or local governments.  Find out more about that here: https://www.sba.gov/business-guide/launch-your-business/register-your-business
5. Get your federal and state tax IDs.  Find more about that here: https://www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers
6. Apply for federal licenses and permits.  Find more about that here: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
7. Open a biz bank account.  Find more about that here: https://www.sba.gov/business-guide/launch-your-business/open-business-bank-account
8. Get business insurance.  Find out more about that here: https://www.sba.gov/business-guide/launch-your-business/get-business-insurance
9. Having these decisions made and the resulting documents in hand will allow you to have all of the information you need at hand to obtain the necessary licenses and permits to bring your startup to life.

What You Need to Do:

1. Do your research- determine what licenses and permits your co. needs and make sure you have that information
2. Fill out the required paperwork and submit any needed documentation.
3. Pay any fees to submit the license and/or permit applications
4. Set up a reminder system to renew the licenses and permits when prior to expiration
5. If you live in the US, check out the SBA website to find the information you need to dive into any of these steps:
6. https://www.sba.gov/business-guide

But, what if you live in:

• In Canada, you can do a permits and licences search on BizPaL, a service provided by federal, provincial/territorial, municipal governments and First Nations.  BizPaL helps you find the permits and licences you may require when starting and/or operating your business. Filter permits based on your location, industry, and business activities and save the ones that apply to your situation.  Visit BizPaL here: https://services.bizpal-perle.ca/?lang=en&b=01

 

• In the UK, some businesses require a licence and some don’t.  There is a small biz licence requirement for alcohol, taxi companies, food outlets, hotels, pet shops, salons, hotels, childcare, and for certain financial activities.  Start by working out what kind of licence you need.  Visit the licence finder tool offered here: https://www.gov.uk/licence-finder​​
• Licences in the UK are usually issued by individual local authorities.  But, there are exceptions.  The costs depend on the licence.  

 

• In India, this process changes from one type of business to another, based on different factors like # of employees, sector, type of biz, place, etc.  Here are the most commonly issued:

 

• Company or LLP Registration regulated by the Ministry of Corporate Affairs ( which allows the entity to have a legal identity and the promoters would enjoy limited liability protection and the biz becomes transferrable with perpetual existence.).
• GST Registration- see the criteria in the GST Act found here: https://www.indiafilings.com/gst-registration
• Udyog Aadhar Registration – this is for entrepreneurs who want to start a micro, small & medium size biz.   The eligibility criteria is based on the investment made in the plant, machinery or investment in equipment.  This provides access to govt subsidies, etc.
• FSSAI Licence or registration – food safety and standard authority of India – retail stores, restuarants, modern trade outlets, kiosks & consumers look for this designation on their food packets or containers.
• Import/Export Code
• Shop & Establishment Act License – regulating the conduct of biz

Of course, we didn’t even cover those biz that need additional regulatory approval, so do your research!

• In Nigeria, for example: a biz license issued by the govt within your locale where you live.  It allows for the operation of your biz in your area.  Most Nigerian biz permits are issued by the Federal Ministry of the Interior on behalf of the Federal govt of Nigeria.  But, let’s not stop there – you need one from the Corporate Affairs Commission, or the Nigerian Immigration Service or some other govt entity.  Do your homework!

 
And, everyone needs to abide by health and safety rules.  Research those, too.


Previous Show: Episode A1.004 Registering with Country, Federal and Local tax organizations
Next Show: Episode A1.006 Business Insurance

Written by Wendy Dickinson

* I am not a CPA, or a business broker, and the recommendations given in this show do not constitute legal or financial advice. Seek professional advice for all legal and financial matters. 

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