Business & Finance Corporations

What Do You Need for a Business License?

    DBA Name

    • A "Doing Business As" name is the name your business is known by. A DBA name may also be called a trade name or fictitious business name (FBN) and must be registered if the business is incorporated or the DBA is different from the owner's name. The secretary of state in most states maintains a searchable list of DBA names already in use online so you can determine if name you want is available. Business name registration is carried out through the county clerk's office in most areas.

    Employer Identification Number

    • A federal employer identification number (EIN) is required if a business has any employees other than the owner of a sole proprietorship. The EIN serves as your federal tax identification number and must be used when remitting payroll taxes you have collected from employees. To apply for an EIN, you can call the IRS for an application form or download it from the IRS website.

    Seller's Permit

    • Most states levy a sales tax. Consequently you need a seller's permit or state sales tax identification number. For the seller's permit, you should contact your state department of revenue or taxation. You will probably need a seller's permit even if your business is entirely wholesale in order to get an exemption from collecting sales tax. Online businesses are usually required to have seller's permits as well as traditional businesses.

    Permits

    • You will likely need one more special permits or licenses. For example, you may need a zoning permit for your business location. Certain types of products or businesses such as selling alcohol, food or firearms require local, state and/or federal permits. Some businesses require that you have a professional license such as accounting or contracting. Once you have all the necessary documents and permits, you must submit an application (and fee) to your local department of taxation. Most jurisdictions won't process your application until you have a complete package of required documents.



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