Get Licensed

Make sure to check out the licensure requirements for your new business before you get too far into the planning process. Depending on the type of business you’re planning to open, you might need a state, city and/or county business permit or license to operate. In other words, before you officially start your own business, look into the nitty-gritty!

Most municipalities require a general business license for any type of business to operate, and starting to do business without one is against the law. Yikes! You also need to check the state and federal laws regulating the type of business you plan to operate to see what type of licenses and/or permits might be required. Requirements for different professionals vary from state to state, so you should check with your state department to verify any requirements that impact you.

Unless you’re functioning as a sole proprietor, you’ll need to get a federal employer identification number (FEIN) for your business, which will serve as your taxpayer identification number. To apply for your United States FEIN, fill out the online form, or call the IRS at (800) 829-4933. Don't let all this legal talk get you bogged down--ask questions, learn as much as you can before you start your own business and you'll be off to a good start!