- November 20, 2017
Necessary license and permits to start a business are largely dependent on the type of business you are starting, where the business is located and what government rules apply. The necessary documents will also depend on if your business is operating within the federal government, state government, or both. All businesses need some sort of license or permit to operate legally. Even the sole proprietors or home-based businesses need a permit from their local government to track revenue for taxation purposes, but also to protect the public. If the business or company engages in matters concerning federal regulations such as alcohol or agriculture, a specific federal license is required. A professional license for companies such as hair dressers or doctors is required to signify a certain level of expertise of the employees and business owners. If selling goods and/or services, a sales tax license is necessary.