Most communities require businesses to obtain a license to operate. Your city clerk should be able to handle this for you. If you plan to operate your business from home, a separate home occupation business license is often required. When you apply for a license, your city planning and zoning department will usually check to make sure your area is zoned for the purpose you want to use it for. If your business is located outside a city or town’s jurisdiction, you’ll need to go to your county courthouse to obtain your business license.

If you’re a sole proprietor, you can usually stop here, as far as your business license goes. If you have employees, or your business is a corporation, a limited liability company, or a limited partnership, you’ll need a state business license in addition to your local one. There are additional state provisions that you may need to comply with. If you’re starting a retail or service business, you’ll need to obtain a sales tax license, which enables you to collect taxes on the state’s behalf. You’ll need a special license to sell liquor, lottery tickets, gasoline, or firearms. People in certain professions, such as barbers, chiropractors, nurses, and real estate agents, must normally pass a state examination and maintain a professional license to conduct business. This category covers a wide swath of businesses, so check with your state government to see if your profession applies. Certain businesses also require special state licenses. Examples include child care, health care facilities, hotels, and restaurants. Again, check with your state to see if your business is subject to special licensing and inspection requirements.

If you’re starting a retail or service business, you’ll need to obtain a sales tax license, which enables you to collect taxes on the state’s behalf.

A narrow group of businesses are required to have a federal business license, including investment advising, drug manufacturing, preparation of meat products, broadcasting, interstate trucking, and businesses that manufacture tobacco, alcohol, or firearms, or sell firearms. These licenses are obtained through the Federal Trade Commission.

Nearly all business are required to obtain a federal employer identification number (EIN), also known as a tax identification number, which is used in filing various business tax returns. The only exception is sole proprietors who do not have employees. In this instance, the sole proprietor uses his social security number as the tax identification number. You can obtain a tax identification number free from the Internal Revenue Service by calling 800-829-4933.

Along with obtaining the appropriate business licenses, you may need to obtain one or more business permits, depending on your location and the nature of your business. The permits regulate how you do business. For example, if you plan to sell food, either as a restaurateur or as a wholesaler to other retailers, you’ll need a city or county health department permit. If your business will be open to the public or will use flammable material, you may need a fire department permit. Some communities require businesses to obtain a permit to put up a sign. Because requirements vary from city to city on these and other issues, you’ll need to ask around to see if any special permits are required for your business. If you’re occupying a building, there will also be building code requirements you’ll have to comply with.

All businesses that plan to use a fictitious name, which is any name other than the business owner’s name, need a fictitious business name permit (also called a dba or doing business as). If you’re a sole proprietor, you can obtain the permit at the city or county level. For example, if your name is Sarah Ryan and you apply for a business license, your business will be registered as Sarah Ryan. If you want to use another name, like Gulf Coast Fresh Flowers, you must apply for a fictitious name permit. You normally need a fictitious name permit to obtain a checking account in your business’s name. It’s also important to have a fictitious name permit if you execute any contracts, sign any agreements, or pay bills or accept payments under your business’s name.

There are a number of resources available to assist business owners in identifying the proper licenses and permits to apply for. The Small Business Administration (SBA) maintains a Web site, at www.sba.gov/hotlist/license.html, that features links that provide information on how to obtain a business license in each state. In addition, most major bookstores, like Borders and Barnes & Noble, carry publications that talk about “doing business in” whatever state you are located in. These publications normally cover business licensing and permit procedures for the applicable state. Many city governments also publish documents that provide guidance for doing business in their city. Good places to look for these publications are the city government’s Web site, the city library’s Web site, or the Web site for the local Chamber of Commerce. For example, the Dallas Public Library publishes a publication titled “Starting a Small Business in Dallas: A Resource Guide.” The guide is available via the Dallas Public Library’s Web site at http://dallaslibrary.org/CGI/smallbiz.htm.