- State Requirements
While business licensing requirements vary from state to state, some of the more common types are listed below.
- Business Licenses
A state business license is the main document required for tax purposes and conducting other basic business functions. Many states have established small business assistance agencies to help small businesses comply with state requirements.
- Occupations and Professions
State licenses are frequently required for occupations as varied as building contractors, physicians, appraisers, accountants, barbers, real estate agents, auctioneers, private investigators, private security guards, funeral directors, bill collectors, and cosmetologists. Since you can’t always guess which occupations and professions are licensed by your state, you should always check with your state licensing authorities.
- Licenses Based on Products Sold
Some state licensing requirements are based on the product sold. For example, most states require special licenses to sell liquor, lottery tickets, gasoline, or firearms. Contact your state licensing authorities to determine the licensing requirements of your business.
- Tax Registration
If the state in which you operate has a state income tax, you’ll have to register and obtain an employer identification number from your state Department of Revenue or Treasury Department. If you’re engaging in retail sales, you will need to obtain a sales tax license.
- Trade Name Registration
If your business will only be operated in your local community, registering your company name with the state may be sufficient.
- Employer Registrations
If you have any employees, you’ll probably be required to make unemployment insurance contributions. For more information, contact your state Department of Revenue or Department of Labor. http://www.sba.gov/smallbusinessplanner/index.hl
There is more to naming your business than just coming up with something that sounds good and you happen to like. Thought must be given to state and local requirements and making sure you don’t infringe upon the rights of someone else’s business name.
Legal Requirements And Implications
Picking a name for your business requires much more than just creativity and a working knowledge of your target market. First you’ll need to decide which business structure you will use, since each structure has its own peculiarities. For example, many states require a sole proprietor to use their own name for the business name unless they formally file another name as a trade name, or fictitious name. Read more about How Business Structure Affects Business Names.
Similarly, you will need to determine whether your trade name will be the same as the full legal name of your business. Of equal importance is finding out whether your name or a very similar name is being used by