Business licenses, permits and tax registrations are government issued and allow you to operate your business in your industry, city, and state. While the exact requirements vary depending on the state and local jurisdiction, licenses and permits are a mandatory prerequisite for your business to operate legally.
Business licenses accomplish four specific tasks:
- They identify the business and make it accountable for its actions.
- They track the activities of the business for tax purposes.
- A business license protects public health and ensures that the business meets its minimum requirements.
- They notify citizens of activities that could impact them.