How To Obtain a Business License For a Retail Store

To legally open and run a retail store in the US, you must first acquire certain business licenses and permits. Simply overlooking this important matter could place your store in jeopardy of being fined and/or shut down. Unless you want to risk the future of your business, it's recommended that you acquire all of the necessary licenses before opening your retail store. But just where are you supposed to acquire them? Keep reading to learn more about obtaining business licenses for retail stores.

The first step in obtaining a business license is to gather all of your accounting and tax information. If your business is operating under a corporation or LLC, then it will likely have an EID. Go through your paperwork to locate this information. In the event you are unable to find it, call up your accountant for a helping hand.

Federal Licenses

Certain retail establishments will require federal licenses in addition to the basic state-level license. Federal licenses are more expensive to acquire, but they still necessary in certain situations. If your store sells tobacco, alcohol or firearms, you'll need to submit an application for a federal license. Because of the high volume of applications, the turnaround time on these is a bit longer. You can find more information about federal license by visiting sba.gov.

State Licenses

Thankfully, applying for a state license is easier, quicker and costs less money. The exact process varies depending on your regional location, so it's best to contact the city hall for more information. They'll be able to point you in the right direction towards acquiring a state license for your retail business. Acquiring one may only require that you visit the city planning office and submit all of your paperwork. Once the office has gone through the paperwork, they'll either mail your new business license or you can pick it up in person.

It's important to note that business license expire after a certain period of time. Most state business licenses are good for exactly one year, at which point you'll have to renew it for an additional year. Federal license, on the other hand, are oftentimes good for several years. Check to see how long your license lasts to ensure it doesn't expire, leaving your business vulnerable to fines or worse. You should be able to determine this information simply by reading the license. It will have an acquisition date as well as the expiration date, so refer back to this when in doubt.