When Do You Need a Business License
License is very important when you operate your business, whether your firm is small or big. Having this will allow you to operate in a legal way. There are some instances that you will also be required to present a license.
By reading this article, you will learn when you need a business license.
License is not just used for your business. There are other undertakings wherein license will be required from you. That is why you must know some date on when you need a business license.
Business Is Serving The Public
Basically, you will be required to secure your business license when you are serving the public. Specifically, a business permit must be obtained when you have a business that is a potential harm to the public. Example of this is food business. The main concern in this type of venture is the manner of food cooking, raw materials’ source and the cleanliness of the dining and cooking place. Dental works will also require you to secure your business permit. This is also a type of business that can put a person into danger. Aside from that, the factories that are potential danger to the people and to the environment are also asked to secure their business permit. This kind of business is highly monitored by the local government in order to ensure that there will be safety of the public. There are also other prerequisites that are oftentimes asked from this type of business venture.
Opening Bank Account
Business license will also be required from you when you are about to open your account in banks. However, this policy depends on every state’s policies. When you are opening a company account, the bank will verify that you are a legitimate owner of the firm. In some banks, it is a protocol to present a business license especially when you will open a company savings account.
Applying For Business Loan
Another instance that you will be required first to accomplish your business license is when you are applying for business financing. Example of this is when you are aspiring to obtain a loan which you will use for your business. This is required from you in order for the lender to have an assurance that you are really genuine of your reason in applying for the financial assistance to your business. The so-called angel investors searching will seldom require you also to present a business license. These are the investors that will help you fund your business.
There are several instances that you will be required of a business permit when you have a fictitious name. Furthermore, this will also be asked from you when you are filing for sole proprietorship of your business. In this case, the name of the company is formulated that is relatively the same to your real name.