How to Get Vendor License

Securing a license is very important when starting a new business. Although there are some businesses that do not require licenses instead they are just required to obtain permits.

That is why if you are planning to start a vending business you should know how to get vendor license.

Before starting any kind of business it is necessary to inquire from your state if it is needed to secure a license. This holds true if you want to start a vending business. On the other hand, the licenses issued depend on the kind of vending business you will offer. Obviously, if you will sell food products you will be required to have food license and inspection. Keep in mind that ignorance about the law will not spare you from the hook. Thus, you should ensure to settle all the legal documents including the licenses before starting the business.

What is Vendor’s License?

Definitely, it is important to understand what vendor license is. It is associated to taxes such as the sales tax and the personal property tax. When applying for the license, the vendor is required to pay the amount of sales based on the gross taxable sales. The good thing about securing a license is that the vendor is giving the share to the Local Government Fund. Likewise, through the vendor’s license the Tax Commissioner will determine if the vendor is diligent in paying tax returns. Vendor’s license is non-transferrable and it is required to apply for new license in case of change in physical location of the business.

Types of Vendor’s License

When applying for vendor’s license you should know which one is suitable to your business. The two types of license is the “regular” and “transient”. The transient license is usually issued by the state while the regular license can be obtained from the auditor’s office. Likewise, the regular license is issued if the vendor has steady place of business or is only in one location. On the other hand, the transient vendor’s license is issued if the vendor is transporting products to temporary exhibits such as craft shows, festivals and county fairs.

Moreover, once you are issued a vendor’s license you should keep in mind that you are allowed to do business on the location specified on the license. Otherwise, you will be penalized if you will violate to the rules associated to vendor’s license. If you do not have idea about this license, you can seek help from professionals such as lawyer so that he can help you in obtaining such legal document. As much as possible you should secure the vendor’s license so that you can ensure that your business will run smoothly. Obviously, you cannot run your vending business if you do not have the necessary licenses required by the state.


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